Billionaire Tilman Fertitta has significantly increased his stake in Wynn Resorts, now owning 9.9% of the casino operator, according to a recent filing with the U.S. Securities and Exchange Commission. This move makes Fertitta, CEO of Landry’s and owner of the Golden Nugget casinos, the largest individual shareholder in the $10 billion company, surpassing Wynn co-founder Elaine Wynn.

The announcement led to an immediate surge in Wynn’s stock price, which rose 9.5% on Thursday, reaching $94 at its peak during midday trading. Fertitta’s holdings, comprising 10.9 million shares, are now valued at over $1 billion, marking a notable return on his initial 6.2% stake acquired in 2022.

Fertitta’s Increasing Influence

Fertitta’s involvement with Wynn has drawn attention not only for his growing financial stake but also for his perceived ambitions regarding the company’s strategic direction, according to CNBC. While his SEC filing lists a passive position, insiders suggest Fertitta could push for changes, particularly in how Wynn communicates its performance to investors and expands its brand within the U.S. market.

Wynn’s portfolio primarily caters to high-end clientele, with flagship properties in Las Vegas, Boston, and Macau. However, Fertitta is believed to see potential in diversifying Wynn’s offerings, potentially targeting middle-market customers through cross-promotion with brands like Golden Nugget.

“Fertitta thinks there are opportunities to expand the Wynn brand, particularly in the US,” noted individuals familiar with his views, cited by Bloomberg.

Challenges and Opportunities for Wynn

Despite its luxurious reputation, Wynn Resorts faces challenges in maintaining consistent financial performance. In its latest quarterly report, the company reported a $32 million loss on $6.69 billion in revenue, an improvement from the $117 million loss on $1.67 billion reported in the same period the previous year.

Analysts and investors have questioned Wynn’s focus on international ventures, including its $5.1 billion integrated resort project in Ras Al Khaimah, United Arab Emirates. CEO Craig Billings has emphasized the potential of this Middle Eastern expansion, but some stakeholders have expressed concerns about the company’s ability to balance domestic and international growth.

Additionally, Wynn has yet to decide on the future of 162 acres of undeveloped land in Las Vegas, which analysts estimate could be worth over $2 billion. While these assets present opportunities, they also highlight uncertainties in the company’s domestic strategy.

Fertitta’s Broader Las Vegas Interests

Fertitta’s increasing stake in Wynn aligns with his ongoing investments in Las Vegas. The hospitality mogul owns several Golden Nugget properties and has secured approvals for a 43-story hotel and casino project on the Las Vegas Strip. The planned development, which will feature restaurants, convention spaces, a spa, and a 2,500-seat theater, reflects Fertitta’s ambition to strengthen his presence in one of the world’s most competitive gaming markets.

This acquisition adds to Fertitta’s extensive portfolio, which spans restaurants, casinos, and sports franchises, including the Houston Rockets. Forbes recently estimated his net worth at $10.1 billion, placing him among the top 100 wealthiest individuals in the U.S.