Fertitta again increases Wynn stake, now owns almost 12%
Houston billionaire Tilman Fertitta has once again expanded his investment in Wynn Resorts, as detailed in recent filings with the Securities and Exchange Commission (SEC) submitted on March 25.
In a series of transactions executed between March 21 and March 24, Fertitta acquired additional shares, increasing his total ownership to 12.6 million shares. This translates to an impressive 11.8% stake in the luxury casino and resort operator, solidifying his position as a significant player in the gaming sector.
Fertitta’s submission of a Schedule 13G indicates that this investment is categorized as passive; he is not currently seeking to influence the operational strategies of Wynn Resorts. His association with the company dates back to late 2022 when he initially acquired a 6% equity share.
His involvement deepened last November when he raised his stake to 9.9%, ultimately making him Wynn Resorts’ largest individual shareholder. This sparked intense speculation regarding a potential takeover bid, particularly considering Fertitta’s extensive experience in the gaming industry. He operates eight Golden Nugget-branded casinos across six states, including three in Nevada. Moreover, his family has significant stakes in the gaming sector through Red Rock Resorts, the parent company of Station Casinos, managed by his cousins Lorenzo and Frank Fertitta.
Notably, a Bloomberg report indicated through anonymous sources that Fertitta harbored concerns about Wynn Resorts’ recent performance; however, none of the parties have publicly addressed these claims.
Investor sentiment has been favorable following Fertitta’s share acquisitions. In November, Wynn’s stock surged by 9% in response to the news. The more recent developments led to a minor uptick of 1.3% in the stock price on Tuesday.
Wynn Resorts refrained from commenting on the recent stake increase, citing Fertitta’s 13G filing status as the basis for their decision.
Strategic Moves Amid Leadership Changes
Fertitta’s increased stake materialized just days after his public commitment to resign as CEO of Fertitta Entertainment, should he be confirmed as the next U.S. ambassador to Italy and San Marino. His business portfolio extends beyond Golden Nugget to include the Landry’s restaurant chain and ownership of the NBA’s Houston Rockets. His nomination as ambassador was announced by President Donald Trump in December.
In a letter to the U.S. Office of Government Ethics dated March 16, Fertitta stated his intention to step down as CEO and relinquish any severance package associated with his role. Mirroring his passive stance on his investment in Wynn, he noted that during his ambassadorship, he would only engage in passive investment without participating in material decision-making processes that could impact the financial performance of his business interests.
Significantly, Fertitta plans to maintain his responsibilities with the Houston Rockets, justifying that potential conflicts of interest would not impede his ability to fulfill his ambassadorial duties effectively.
As the gambling industry evolves, Fertitta’s strategic investments and potential leadership changes at such a prominent gambling entity like Wynn Resorts will be closely scrutinized by stakeholders. His track record in successfully navigating the gambling landscape positions him as a pivotal figure as the company looks to optimize its performance in an increasingly competitive environment.
