Casino Mogul Steve Wynn's Midas Touch

(CBS)  This story was first published on April 12, 2009. It was updated on July 16, 2009.

If you look down at the earth at night, the astronauts say the brightest spot on the planet is the Las Vegas Strip. The man who turned up the wattage in Las Vegas is casino mogul Steve Wynn. He set off a building boom in the 1980s that turned a bunch of gambling joints into an international tourist spot.

Las Vegas became the fastest growing city in America until the financial meltdown hit it - hard.

As Charlie Rose reported in April, the gambling industry has been in desperate shape. Revenues in Wynn's Las Vegas properties have plummeted about 30 percent in the recession.

But the economy didn't stop him from opening his most opulent casino resort yet, the Encore. Rose, who has known Steve Wynn both personally and professionally for about 15 years, profiles him for 60 Minutes.

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At 67, Wynn is a legend in Las Vegas - the man with the Midas touch who added glamour to the gambling industry. Even in this recession, thousands came to try their luck at his new casino, Encore, when it opened in late 2008.

Encore cost nearly $2.3 billion dollars, a risky bet in a bad economy.

Asked why he'd open a hotel in this economic environment, Wynn told Rose, "Well I'll tell you right now that if I had any idea this…I wouldn't if I had a choice. But this project was started four years ago. These things have a huge lead time."

The gambling industry has been battered by the recession and taken the city of Las Vegas down with it. Some casinos stand half-built; unemployment is over 10 percent.

And while Wynn has had to slash employees' pay and lower room prices, he plows ahead, doing whatever it takes to get customers to his new hotel.

When he opened his namesake Wynn casino-hotel, he shot a famous TV ad standing right on the edge of the top of his hotel - dozens of floors above Las Vegas. For Encore, he did an encore performance for a commercial, this time sitting on the edge of the building.

The Encore and Wynn casino-hotels are connected, situated right next to each other. And he has a third casino hotel in Macau, China.

Inside, his hotels are fantasy lands for well-heeled adults. He brought gourmet restaurants and high end shopping to the strip.

His hotels may be extravagant but his business strategy is conservative. His company is not highly leveraged and has over $1 billion in cash to help ride out the recession.

"I want to understand a bit about the casino business," Rose remarked.

"So do I," Wynn joked.

He told Rose the only way to win in a casino is to own one, "unless you're very lucky."

And he says, even when people are lucky, they usually gamble away their winnings.

"You have never known in your entire life a gambler who comes here and wins big and…walks away?" Rose asked.

"Never," Wynn replied.

"You know nobody hardly that over the stretch of time is ahead?" Rose asked.

"Nope," Wynn said.

The customer's loss is Wynn's gain. He's a billionaire, but he isn't all that interested in gambling: his passion is creating the resorts.

He works closely with his design team and signs off on nearly every detail.

Asked why he focuses so much on how things look, Wynn said, "I can't help myself. It's a sickness. My doctor says if I take my medication I'm no danger to anybody but myself. I can't help it."

He told Rose that brings him the greatest joy.

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[marstokyo]

I absolutely seethed while watching your so-called news story on Steve Wynn. It was nothing but a glorified promotion, by a personal friend of his (no less). In an episode that contained a commentary/tribute to Walter Cronkite, you choose to re-air this commercial for gambling. Gambling is an addiction that destroys lives. Why don't you just do a story to promote the CEO and products of R.J. Reynolds? Steve Wynn, as shown in your tribute to him, is nothing more than a cheap huckster out to make a buck. So he's made millions and millions. And how? on the backs of workers he short changes and gambling addicts. Really something to be proud of.
Walter Cronkite must be spinning in his grave.

[Union_Wynn_Dealer]

Where was the "meat" of this segment? Where was the focus on current issues?

Since August 21, 2006, approximately 600 full-time/200 part-time casino dealers working at Wynn Las Vegas have been in a financial struggle with their employer. Breaking the industry standard, and also the condition of employment, Steve Wynn along with Wynn Las Vegas President Andrew Pascal (his nephew by marriage) decided to subsidize the dealers' floor supervisors' income by cutting them into the dealers' toke (tip) pool. The company claimed there was a "disparity" between the pay of the supervisors and the dealers. So, we the dealers said, "Then pay them with the hundreds of millions in record profits." You see, the casino pays the dealers close to minimum wage and then we earn tips ourselves. Dealers work hard to earn our tip income, which is about 85% to 90% of our total income. Supervisors were already earning over $30 p/hr, but the casino said that they should get more money. Let me also mention that the dealers' Toke Committee (made up of dealers we vote for during an election), which collects and counts the tokes, was dissolved by Wynn. So, not only are we paying our own supervisors, but we do not even have a clue as to how much tip income we collect daily. We cannot collect, count, verify or dispense the tokes! Have you ever heard of a tipped employee not handling their own tips?

Previously, there was a class action lawsuit, and now the dealers are looking forward to a hearing with the Nevada Labor Commissioner's Office on July 7, 2009. Nevada law clearly states that the employees must have an "agreement amongst themselves," which we clearly never agreed amongst ourselves to pay Wynn's management with our tip income.

This leads me to the other current issue - unionism. Although Las Vegas is considered a union town with tens of thousands of union employees working at major strip casinos, dealers have always been "discouraged" or perhaps taboo to unionize for political reasons. After barely being opened for 1 1/2 years, the dealers at Wynn Las Vegas were determined to unionize. With a 3-to-1 overwhelming majority, on May 13, 2007 we did and never looked back. Contrary to false news reports, we did not unionize only because of the tips being taken from us; that was just the final straw.

It goes deeper than that - much deeper than this segment on 60 Minutes cared to dive.

Tune in next week to see "Dealers Fight for Just Cause (because all loyal employees ever want is a loyal company that respects its employees and treats them right, oh yeah, and doesn't dip in their tip cup)."

Tick, tock, tick, tock, tick, tock....

[sjc_1]

Since when to we admire wheelers and dealers, sports stars and movie stars, but neglect the scientists, engineers and teachers that create the future that we all enjoy? Let's get our priorities straight for once!

[Billsboathouse]

Wynn is losing. He is losing his wife, they are divorcing. He is losing his eyesight, he cannot see except very up close what brought him the greatest joy. And, ironically, the article title references Casino Mogul Steve Wynn as the man with the Midas Touch. But was not that mythical character one who discovered that the things he wished for were not things after all but were rather in fact actually costing him what mattered most?

[ron735]

60 minutes has become extreme left wing liberals, constantly attacking everything right wing, especially republicans & promoting the left wing agenda, like socialized medicine. how ironic, there's Charlie Rose, a left wing liberal, interviewing his friend Steve Wynn who is a rich outstanding very successful entrepreneur who made Las Vegas what it is today, the very same people the liberals & Obama are going after, criticizing them for their so called excesses. Rose never asked the obvious key questions. what does Wynn think of the extreme left wing Obama administration. what does Wynn think of the left wing liberal democrats & Obama taking over this country & spending trillions. what does Wynn think of the payoffs to unions & how they're going to get stronger. what does Wynn think of the new negative attitude toward successful people like him by Obama & the democtats. what does he think of Obama's criticism of companies having conventions which caused the cancellation of many conventions in Las Vegas, creating layoffs. what does he think of Obam's tax increases. charlie what happened, you always ask such probing questions. could it be that you & 60 minutes didn't want to hear the answers. Wynn can't be very happy but we'll never hear his opinion. we live in a new age now. profit is bad & we have to share the wealth. company conventions, celebrations, parties & excesses are over. Las Vegas will have to find another source of income.

[kidcary]

I LIKE CHARLIE ROSE & STEVE WYNN, BUT THIS INTERVIEW WAS REALLY BAD. IT WAS JUST FLUFF, NOTHING ABOUT LAS VEGAS TODAY, JUST MORE STEVE

[mosescat]

Who gives us sight and who takes our sight? Ecclesiastes says "As he came forth of his mother's womb, naked shall he return to go as he came, and shall take nothing of his labour, which he may carry away in his hand." I hope whatever Mr. Wynn is doing here on Earth, he is doing with God in mind, for this life is but a breath and eternity is eternity.

[whitemale08]

To praise a casino mogul is stupid and one of the reasons why this country is in the mess it's in.

The entire debt market of 1.4 quadrillion in worthless derivatives and credit-default swaps is a casino.

Folks, unless we shut down the already dead financial system of worthless derivatives and credit-default swaps and stop praising idiots like this Las Vegas clown, this country will not survive.

Mark my words.

[middleoftheroad]

Mr. Wynn is a genius... As a native Las Vegan...is. Taking children to Vegas (maybe one of the more dubious outcomes from the allure of his incredible casinos) became a routine for families, and I watched the kids marched with open mouths and shining eyes past the pirate displays and aquariums, join ing their parents in astonishment at the cirque acrobatic theaters and tiger show. His genius entertained millions, and I am personally thankful for having his gracious hotels and restaurants to entertain family and friends. Thank you Mr. Wynn.
Posted by olayitfair at 6:32 PM : Apr 12, 2009
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Genius? I don't think so. The word is used way too loosely these days. I don't think it takes genius to put up a glitzy luxury casino; it takes money.

By the way, did those families with kids walk by open-mouthed at the Mexicans with their young children shoving porn advertisements in your face at all hours of the day? I know the times I've been to Vegas, that always seems to bring much class to the Strip.

[credibility2]

The poor do have the freedom to do whatever they want within the confines of their financial limitations. The poor also have every opportunity and freedom to pursue and work for getting out of their state of being poor. I've been both poor and modestly wealthy. I was poor before the wealth. There is much truth in a poor type of freedom and a rich type of freedom. Of course expecting to have everything, as if one isn't poor is a problem with being unrealistic. Many poor want to be equal to those that have more than they without accepting the personal responsibility for working and expending effort to get out of their situation. Instead, preferring to complain and expect handouts; preferring to be government-reliant, versus self-reliant.