WYNN Resorts (WYNN) risk factors, FY2025 10-K

Risks Related to our Business

1. 01Our business is particularly sensitive to reductions in discretionary consumer spending, and a negative macroeconomic environment, including an economic downturn or recession, could adversely impact our business, results of operations, financial condition and cash flows
2. 02Investigations, litigation and other disputes could distract management, damage our reputation, and result in negative publicity and additional scrutiny from regulators
3. 03We depend on the continued services of key managers and employees. If we do not retain our key personnel or attract and retain other highly skilled employees, our business will suffer
4. 04Demand for our products and services may be negatively impacted by geopolitical tensions, visa and travel restrictions or difficulties, restrictions on international money transfers and other policies or campaigns implemented by regional governments
5. 05In addition, governmental action and uncertainty resulting from global political trends and policies of major global economies, including potential barriers to travel, trade and immigration, have reduced demand for hospitality products and services, including visitation to our resorts
6. 06Our continued success depends on our ability to maintain the reputation of our resorts
7. 07We are entirely dependent on a limited number of resorts for all of our cash flow, which subjects us to greater risks than a gaming company with more operating properties
8. 08We are a parent company and our primary source of cash is and will be distributions from our subsidiaries
9. 09Our business relies on premium customers. We often extend credit, and we may not be able to collect gaming receivables from our credit players or credit play may decrease68% rewritten
10. 10Win rates for our gaming operations depend on a variety of factors, some of which are beyond our control69% rewritten
11. 11operations and generate negative publicity, both of which could have an adverse effect on our reputation, business, results of operations and cash flowsNew
12. 12We could encounter higher than expected cost increases in the development of our projects
13. 13Any violation of applicable anti-money laundering laws and regulations, the FCPA and other anti-corruption laws, or resulting sanctions and penalties could adversely affect our business, performance, prospects, value, financial condition, and results of operations
14. 14Because we own real property, we are subject to extensive environmental regulation, which creates uncertainty regarding future environmental expenditures and liabilities
15. 15Adverse incidents or adverse publicity concerning our resorts or our corporate responsibilities could harm our brand and reputation and negatively impact our financial results
16. 16Compliance with evolving laws and regulations, and the interpretations thereof, is expensive and results in compliance risks
17. 17We are subject to taxation by various governments and agencies. The rate of taxation could change
18. 18System failure, information leakage and the cost of maintaining sufficient cybersecurity could adversely affect our business
19. 19The failure to protect the integrity and security of company employee and customer information could result in damage to reputation and/or subject us to fines, payment of damages, lawsuits or restrictions on our use or transfer of data
20. 20Our business could suffer if our computer systems and websites are disrupted or cease to operate effectively
21. 21If a third party successfully challenges our ownership of, or right to use, the Wynn-related trademarks and/or service marks, our business or results of operations could be harmed
22. 22Federal registrations are not completely dispositive of the right to such marks. Third parties who claim prior rights with respect to similar marks may nonetheless challenge our right to obtain registrations or our use of the marks and seek to overcome the presumptions afforded by such registrations
23. 23Labor actions and other labor problems could negatively impact our operations38% rewritten
24. 24Our insurance coverage may not be adequate to cover all possible losses that we could suffer, including losses resulting from terrorism, and our insurance costs may increase
25. 25Our Macau Operations may be affected by adverse political and economic conditions
26. 26We compete for limited labor resources in Macau and local policies may also affect our ability to employ imported labor
27. 27The smoking control legislation in Macau could have an adverse effect on our business, financial condition, results of operations and cash flows
28. 28Extreme weather conditions have had and may in the future have an adverse impact on our Macau Operations
29. 29If our Macau Operations fail to comply with the Gaming Concession Contract, or applicable Macau laws and administrative regulations, the Macau government may rescind our concession without compensation to us, which would have a material adverse effect on our business and financial condition
30. 30Certain Nevada gaming laws apply to our gaming activities and associations outside of Nevada
31. 31The Massachusetts Gaming Commission has broad authority to consider conduct outside of Massachusetts for continued licensure in Massachusetts
32. 32Unfavorable changes in currency exchange rates may increase our Macau Operations' obligations under the concession agreement and cause fluctuations in the value of our investment in Macau
33. 33Currency exchange controls and currency export restrictions could negatively impact our Macau Operations
34. 34Conflicts of interest may arise because certain of our directors and officers are also directors of Wynn Macau, Limited
35. 35The Macau government has established a maximum number of gaming tables that can be operated in Macau and has limited the number of new gaming tables at new gaming areas in Macau35% rewritten

Risks Related to Share Ownership and Stockholder Matters

1. 36Certain stockholders are able to exert significant influence over our operations and future direction57% rewritten
2. 37Our stock price may be volatile44% rewritten

Risks Related to our Indebtedness

1. 38We are highly leveraged and future cash flow may not be sufficient for us to meet our obligations, and we might have difficulty obtaining more financing25% rewritten
2. 39The agreements governing our debt facilities contain certain covenants that restrict our ability to engage in certain transactions and may impair our ability to respond to changing business and economic conditions39% rewritten
3. 40stock; create dividend and other payment restrictions affecting subsidiaries; and designate restricted and unrestricted subsidiariesNew