How Casino Billionaire Steve Wynn Lost $10 Million on Baccarat
Everybody knows that in a casino the house always wins. But there is an exception to this rule and it has been set by Wynn Resorts.
Casino tycoon, Steve Wynn announced that a junket operator in his Macau casinos brought in clients whose winnings cost the casino around $10 million. This is considered a big hit for a business that turns over around $50 million a year.
“We had probably the most unique statistical anomaly in my 50 years of doing this,” the founder and chief executive officer of Wynn Resorts told analysts on a conference call. “And that is with enormous volume, one of our leading outlets lost money for the entire month.”
Wynn Resorts holds a subcontracting company responsible for losses
Wynn Resorts claims that the operator was a subcontractor with Suncity Group, which is one of Macau’s biggest junket operators. The biggest losses for the house were endured on the baccarat tables at Wynn Palace.
Many speculate that junket operators bring in high rollers to the casino, provide them with cash and set them up in private rooms. It is well known that the casinos pay the operators a commission based on the amount their clients’ wager, and are taking all the risk for a gambler’s winnings.
“The bottom fell out and all of the players won millions of dollars,” said the 75-year-old casino mogul.
“Let’s be clear, we had a lot of luck this quarter,” President Rob Goldstein said on an earnings call. “I think it bears repeating that this is a highly concentrated segment that a couple of dozen players can make a difference in a quarter.”
Baccarat’s high odds are the game’s biggest attraction
Probability plays a big role in baccarat but the game also offers one of the best odds for players. For instance the house advantage averages around 1.2%. This means that a player can potentially expect to lose $1.20 for every $100 they bet over time. These are considered high odds considering that a slot machine would offer as much as $12 for every $100 wager over time.