Macau’s casino industry has taken a hit during the last twenty four months due to the anti-corruption crackdown launched by Beijing but that has not deterred gaming operators from proceeding with their plans of opening new multi-billion casino resorts in Cotai. The Cotai district is expected to see three more mega casinos open to the public in the next couple of years with the Parisian Macao, MGM’s Cotai Casino and the Wynn Palace.

Fitch Ratings Inc, a credit ratings agency performed a study on the Cotai casino market and expects the Wynn Palace to dominate all the other casinos in Cotai. Wynn Macau Ltd and its parent company Wynn Resorts have invested $4.2 billion in the Wynn Palace and estimate that their 2017 earnings before interest, taxation, depreciation and amortisation (EBITDA) will be between $630 million and $850 million. Investment and gaming analysts say that this prediction is rather optimistic considering the current casino market in Macau.

Fitch Ratings estimates that the Wynn Palace EBITDA in 2017 will be around $580 million. All this is based on the fact that the Wynn Palace will open without any further delay. The casino was initially scheduled to open on March 25 but was postponed to June 25 and so far an official opening date is yet to be confirmed by Wynn Palace.

Wynn Macau Ltd currently owns just one property in Macau which is the Wynn Macau casino and hotel. The opening of the Wynn Palace in Cotai will allow the company to capture a bigger percentage of the casino market and boost its overall revenue. Wynn Macau captured a ten percent share of Macau’s casino market in 2010 and gaming analysts predict that with the opening of the Wynn Palace, the company’s market share should increase to thirteen percent by 2018.

In a statement, Fitch analysts said “Fitch’s stronger confidence in Wynn Palace takes into account Wynn Resorts’ ability to transfer underutilised resources to Cotai from [the Wynn Macau casino hotel in the] peninsula including approximately 50 tables and US$100 million of annualized labour costs”.

The Wynn Palace will face competition from Sands China’s $2.7 billion Parisian Macao and the $3.1 billion MGM Cotai casino. The Parisian is expected to open in September 2016 while MGM Cotai officials have postponed their launch from the fourth quarter of 2016 to the first quarter of 2017.

Sanford C. Bernstein Ltd, a brokerage firm stated that if Macau’s VIP gaming sector recover faster than what analysts have estimated, the Wynn Palace will benefit immensely as the casino has a number of VIP product offerings that will provide a big boost to its overall revenues.