Nearly 10% stake in Wynn Resorts makes Landry CEO Fertitta its largest individual shareholder.

• According to a filing with the U.S. Securities and Exchange Commission, Tilman Fertitta, billionaire, has boosted his ownership stake in Wynn Resorts to 9.9%.
• Despite the filing suggesting a passive stance, sources close to the matter believe Fertitta will be assertive.
• Fertitta replaces co-founder Elaine Wynn as the company's largest shareholder.

According to a filing with the U.S. Securities and Exchange Commission, Tilman Fertitta, billionaire, has raised his ownership stake in to 9.9%.

Despite the filing suggesting a passive stance, sources close to the matter believe Fertitta will be assertive.

On Thursday, Wynn's share price experienced a 9% increase, which was consistent with its 200-day moving average. Despite exhibiting significant volatility over the past 20 years, the stock has not shown much sustained growth.

Since its debut in 2013, Hilton has experienced more than 500% growth, while Marriott's 20-year gains are over 950%, and the stock is up roughly 57% over the same time frame.

Wynn Resorts and Fertitta declined to comment on his increased stake.

Landry's CEO Fertitta owns the Houston Rockets and eight Golden Nugget casinos, including the one in downtown Las Vegas. He is planning to build a new 43-story casino resort on the Las Vegas Strip.

He often speaks out about issues affecting Las Vegas, whether it's Formula One or historic union wage contracts. Wynn Las Vegas is the most luxurious resort on the Strip, with two high-end resorts in Macao. Its customers are wealthier and typically spend more on shopping and gambling.

In the third quarter, Wynn's revenue and adjusted property EBITDA in both Macao and Las Vegas fell short of expectations, marking a softening after a prolonged period of growth.

Occasionally, analysts inquire about the company's plans to create or sell 162 acres in Las Vegas, which includes a 128-acre golf course and a 38-acre parcel adjacent to its resort complex on the Strip.

In a June note, Jefferies analyst David Katz estimated the land's value to be slightly over $2 billion, but he pointed out that there is no clear plan for its development or sale.

Some investors have privately complained that Wynn is losing its luxury brand reputation and exceptional hospitality status in the US while it concentrates on expanding into the gaming industry in the Middle East.

In an interview with CNBC, Wynn CEO Craig Billings highlighted the opportunities he sees in the United Arab Emirates during the company's third-quarter earnings call earlier this month and an investor day in October.

A new integrated casino resort in Ras Al Khaimah, UAE, is being built with a projected cost of $5.1 billion, and Wynn Resorts holds a 40% stake in the project.

In 2022, Fertitta bought 6.9 million shares of Wynn stock at approximately $54 per share. Currently, the stock trades for about 70% more than its original price, giving Fertitta a 6.2% stake in the company and making him the second-largest individual shareholder in Wynn, after co-founder Elaine Wynn.

With a 9.9% stake, Fertitta replaces Elaine Wynn, who founded the company with her husband Steve Wynn and resigned from the board of directors in 2020.