Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with, and is qualified in its entirety by, the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q and the audited consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2021. Unless the context otherwise requires, all references herein to the "Company," "we," "us," or "our," or similar terms, refer to Wynn Resorts, Limited, a Nevada corporation, and its consolidated subsidiaries. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled "Forward-Looking Statements."

Forward-Looking Statements

We make forward-looking statements in this Quarterly Report on Form 10-Q based upon the beliefs and assumptions of our management and on information currently available to us. Forward-looking statements include, but are not limited to, information about our business strategy, development activities, competition and possible or assumed future results of operations, throughout this report and are often preceded by, followed by or include the words "may," "will," "should," "would," "could," "believe," "expect," "anticipate," "estimate," "intend," "plan," "continue" or the negative of these terms or similar expressions.

Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including the risks and uncertainties in Item 1A — "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2021 and other factors we describe from time to time in our periodic filings with the Securities and Exchange Commission ("SEC"), such as:

extensive regulation of our business and the cost of compliance or failure to comply with applicable laws and regulations;
pending or future claims and legal proceedings, regulatory or enforcement actions or probity investigations;
our ability to maintain our gaming licenses and concessions, including the renewal or extension of the concession in Macau that expires on December 31, 2022 and the amendments to the Macau gaming law;
our dependence on key employees;
general global political and economic conditions, in the U.S. and China (including the Chinese government's ongoing anti-corruption campaign), which may impact levels of travel, leisure, and consumer spending;
restrictions or conditions on visitation by citizens of PRC and other regions to Macau;
the impact on the travel and leisure industry from factors such as an outbreak of an infectious disease, including the COVID-19 pandemic, public incidents of violence, riots, demonstrations, extreme weather patterns or natural disasters, military conflicts, civil unrest, and any future security alerts and/or terrorist attacks;
doing business in foreign locations such as Macau;
our ability to maintain our customer relationships and collect and enforce gaming receivables;
our dependence on a limited number of resorts and locations for all of our cash flow and our subsidiaries' ability to pay us dividends and distributions;
competition in the casino/hotel and resort industries and actions taken by our competitors, including new development and construction activities of competitors;
factors affecting the development and success of new gaming and resort properties (such as limited labor resources, government labor and gaming policies, transportation infrastructure, supply chain disruptions, cost increases, environmental regulation, and our ability to secure necessary permits and approvals);
construction risks (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems; shortages of materials or skilled labor; environment, health and safety issues; and unanticipated cost increases);
legalization and growth of gaming in other jurisdictions;
any violations by us of the anti-money laundering laws or Foreign Corrupt Practices Act;
adverse incidents or adverse publicity concerning our resorts or our corporate responsibilities;
changes in gaming laws or regulations;
changes in federal, foreign, or state tax laws or the administration of such laws;
continued compliance with all provisions in our debt agreements;
conditions precedent to funding under our credit facilities;
leverage and debt service (including sensitivity to fluctuations in interest rates);
cybersecurity risk, including cyber and physical security breaches, system failure, computer viruses, and negligent or intentional misuse by customers, company employees, or employees of third-party vendors;
our ability to protect our intellectual property rights; and
our current and future insurance coverage levels.

Further information on potential factors that could affect our financial condition, results of operations and business are included in this report and our other filings with the SEC. You should not place undue reliance on any forward-looking statements, which are based only on information available to us at the time this statement is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Overview

We are a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming, all supported by an unparalleled focus on our guests, our people, and our community. Through our approximately 72% ownership of Wynn Macau, Limited ("WML"), we operate two integrated resorts in the Macau Special Administrative Region ("Macau") of the People's Republic of China ("PRC"), Wynn Palace and Wynn Macau (collectively, our "Macau Operations"). In Las Vegas, Nevada, we operate and, with the exception of certain retail space, own 100% of Wynn Las Vegas. Additionally, we are a 50.1% owner and managing member of a joint venture that owns and leases certain retail space at Wynn Las Vegas (the "Retail Joint Venture"). We refer to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as our Las Vegas Operations. In Everett, Massachusetts, we own 100% of and operate Encore Boston Harbor, an integrated resort. We also hold an approximately 85% interest in, and consolidate, Wynn Interactive Ltd. ("Wynn Interactive"), through which we operate online sports betting, gaming, and social casino businesses.

Recent Developments Related to COVID-19

Macau Operations

Visitation to Macau has fallen significantly since the outbreak of COVID-19, driven by the strong deterrent effect of the COVID-19 pandemic on travel and social activities, quarantine measures put in place in Macau and elsewhere, travel and entry restrictions and conditions in Macau, the PRC, Hong Kong and Taiwan involving COVID-19 testing, and mandatory quarantine, among other things, and the suspension or reduced accessibility of transportation to and from Macau. Although there have been periods during which certain restrictions and conditions were eased by the Macau government to allow for greater visitation and quarantine-free travel to Macau, adverse conditions and evolving conditions created by and in response to the COVID-19 pandemic may cause these restrictions and conditions to be reintroduced. For example, in response to an outbreak in Macau which initially commenced in mid-June 2022, the Macau government extended its COVID-19 containment measures, including the closures of casino operations in full as well as all non-essential business as of July 11, 2022, and the closure and the limiting of the opening hours and/or operational capacity of various areas and facilities in Macau. On July 23, 2022, casino operations at Wynn Palace and Wynn Macau resumed on a limited basis, and remain limited at the present time due to severely reduced visitation to Macau as a result of enhanced border controls. On August 2, 2022, the Macau government lifted most of the remaining enhanced COVID-19 restrictions which went into effect in June and July and limited non-gaming operations at Wynn Palace and Wynn Macau began to resume. Certain enhanced COVID-19 protective measures remain in effect at the present time with respect to gaming and non-gaming operations. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and around the imposition or relaxation of containment measures, management cannot predict whether future closures, in full or in part, will occur in our properties, and cannot reasonably estimate the impact to our future results of operations, cash flows, or financial condition.

Macau Gaming Concession

On June 23, 2022, Wynn Resorts (Macau) S.A. ("WRM") and the Macau government entered into a concession extension agreement (the "Concession Extension Agreement"), pursuant to which the expiration date of WRM's gaming concession was extended from June 26, 2022 to December 31, 2022. Under the Concession Extension Agreement, WRM paid the Macau government MOP47.0 million (approximately $6.0 million) as a contract premium for the extension, and by no later than September 23, 2022 will provide a first demand bank guarantee of not less than MOP1,210.0 million (approximately $150.0 million) in favor of the Macau government for securing the fulfillment of its labor liabilities upon the expiration of the Concession Extension Agreement.

In order to enable WRM to fulfill the relevant requirements to become eligible to obtain a concession extension, each of WRM and Palo Real Estate Company Limited ("Palo") (the land concessionaires of Wynn Macau and Wynn Palace, respectively) entered into a letter of undertaking, pursuant to which each of WRM and Palo has undertaken, pursuant to Article 40 of the Macau gaming law and Clause 43 of the concession agreement, to revert to the Macau government relevant gaming equipment and gaming areas at Wynn Macau and Wynn Palace, without compensation and free of encumbrance upon the expiration of the concession agreement term, as amended by the Concession Extension Agreement.

Under the indentures governing our $4.7 billion aggregate principal amount of WML Senior Notes and the facility agreement governing the WM Cayman II Revolver, upon the occurrence of any event after which we do not own or manage casino or gaming areas or operate casino games of fortune and chance in Macau in substantially the same manner and scope as of the issue date of the respective senior notes or the date of the facility agreement, for a period of 10 consecutive days or more in the case of the WML Senior Notes or a period of 30 consecutive days or more in the case of the WM Cayman II Revolver, and such event has a material adverse effect on the financial condition, business, properties or results of operations of WML and its subsidiaries, taken as a whole, holders of the WML Senior Notes can require us to repurchase all or any part of the WML Senior Notes at par, plus any accrued and unpaid interest (the "Special Put Option"), and any amounts owed under the WM Cayman II Revolver may become immediately due and payable (the "Property Mandatory Prepayment Event").

In June 2022, the Macau government published the amendments to the Macau gaming law approved by the Macau Legislative Assembly. These amendments include, for example, the awarding of up to six gaming concessions with a term up to ten years with a maximum three-year extension possible, and an increase in the minimum capital requirement applicable to concession holders to MOP5.0 billion (approximately $625.0 million), an increase in the percentage of the share capital of the concessionaire that must be held by the local managing director to 15% from 10% and a prohibition on revenue sharing arrangements between gaming promoters and concession holders. The Macau government also published the administrative regulations and related documents in relation to a public tender for the awarding of new gaming concessions in July 2022. Upon the publication and entry into force of the revised gaming law on June 23, 2022, we are monitoring developments with respect to the Macau government's public tender process, including the adoption of additional administrative regulations, instructions, dispatches, and further adaptations to the current legal and regulatory system, and at this time believe that our concession agreement will be further extended, renewed or replaced by a new gaming concession agreement beyond December 31, 2022. However, it is possible the Macau government could further change or interpret the associated gaming laws in a manner that could negatively impact the Company.

If we are unable to further extend or renew our concession agreement or obtain a new gaming concession agreement, an election by the WML Senior Notes holders to exercise the Special Put Option and the triggering of the Property Mandatory Prepayment Event would have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Key Operating Measures

Certain key operating measures specific to the gaming industry are included in our discussion of our operational performance for the periods for which the Condensed Consolidated Statements of Operations are presented. These key operating measures are presented as supplemental disclosures because management and/or certain investors use these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues. These key operating measures are defined below:

Table drop in mass market for our Macau Operations is the amount of cash that is deposited in a gaming table's drop box plus cash chips purchased at the casino cage.
Table drop for our Las Vegas Operations is the amount of cash and net markers issued that are deposited in a gaming table's drop box.
Table drop for Encore Boston Harbor is the amount of cash and gross markers issued that are deposited in a gaming table's drop box.
Rolling chips are non-negotiable identifiable chips that are used to track turnover for purposes of calculating incentives within our Macau Operations' VIP program.
Turnover is the sum of all losing rolling chip wagers within our Macau Operations' VIP program.
Table games win is the amount of table drop or turnover that is retained and recorded as casino revenues. Table games win is before discounts, commissions and the allocation of casino revenues to rooms, food and

beverage and other revenues for services provided to casino customers on a complimentary basis. Table games win does not include poker rake.

Slot machine win is the amount of handle (representing the total amount wagered) that is retained by us and is recorded as casino revenues. Slot machine win is after adjustment for progressive accruals and free play, but before discounts and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.
Poker rake is the portion of cash wagered by patrons in our poker rooms that is retained by the casino as a service fee, after adjustment for progressive accruals, but before the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis. Poker tables are not included in our measure of average number of table games.
Average daily rate ("ADR") is calculated by dividing total room revenues, including complimentaries (less service charges, if any), by total rooms occupied.
Revenue per available room ("REVPAR") is calculated by dividing total room revenues, including complimentaries (less service charges, if any), by total rooms available.
Occupancy is calculated by dividing total occupied rooms, including complimentary rooms, by the total rooms available.

Below is a discussion of the methodologies used to calculate win percentages at our resorts.

In our VIP operations in Macau, customers primarily purchase rolling chips from the casino cage and can only use them to make wagers. Winning wagers are paid in cash chips. The loss of the rolling chips in the VIP operations is recorded as turnover and provides a base for calculating VIP win percentage. It is customary in Macau to measure VIP play using this rolling chip method. We typically expect our win as a percentage of turnover from these operations to be within the range of 3.1% to 3.4%; however, reduced gaming volumes as a result of COVID-19 containment measures implemented in Macau may cause volatility in our Macau Operations’ VIP win percentages.

In our mass market operations in Macau, customers may purchase cash chips at either the gaming tables or at the casino cage. The measurements from our VIP and mass market operations are not comparable as the measurement method used in our mass market operations tracks the initial purchase of chips at the table and at the casino cage, while the measurement method from our VIP operations tracks the sum of all losing wagers. Accordingly, the base measurement from the VIP operations is much larger than the base measurement from the mass market operations. As a result, the expected win percentage with the same amount of gaming win is lower in the VIP operations when compared to the mass market operations.

In Las Vegas, customers purchase chips at the gaming tables in exchange for cash and markers. Customers may then redeem markers at the gaming tables or at the casino cage. The cash and markers, net of redemptions, used to purchase chips are deposited in the gaming table's drop box. This is the base of measurement that we use for calculating win percentage. Each type of table game has its own theoretical win percentage. Our expected table games win percentage is 22% to 26%.

At Encore Boston Harbor, customers purchase chips at the gaming tables in exchange for cash and markers. Customers may then redeem markers only at the casino cage. The cash and gross markers used to purchase chips are deposited in the gaming table's drop box. This is the base of measurement that we use for calculating win percentage. Each type of table game has its own theoretical win percentage. Our expected table games win percentage is 18% to 22%.

Results of Operations

Summary of second quarter 2022 results

The following table summarizes our financial results for the periods presented (dollars in thousands, except per share data):


	Three Months Ended June 30,							Six Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change	2022		2021		Increase/ (Decrease)		Percent Change
Operating revenues	$	908,832	$	990,113	$	(81,281)	(8.2)	$	1,862,166	$	1,726,795	$	135,371	7.8
Net loss attributable to Wynn Resorts, Limited	(130,051)		(131,369)		1,318		1.0	(313,375)		(412,347)		98,972		24.0
Diluted net loss per share	(1.14)		(1.15)		0.01		0.9	(2.73)		(3.66)		0.93		25.4
Adjusted Property EBITDA (1)	179,159		206,880		(27,721)		(13.4)	356,740		265,780		90,960		34.2

(1) See Item 1—"Financial Statements," Note 18, "Segment Information," for a reconciliation of Adjusted Property EBITDA to net loss attributable to Wynn Resorts, Limited.

The decrease in operating revenues for the three months ended June 30, 2022 was primarily driven by decreases of $211.7 million and $125.4 million from Wynn Palace and and Wynn Macau, respectively, resulting from a decrease in gaming volumes due to certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic. The decrease in operating revenues was partially offset by an increase in operating revenues of $206.0 million and $44.9 million at our Las Vegas Operations and Encore Boston Harbor, respectively, resulting from increased gaming volumes as well as increases in hotel occupancy and covers at restaurants. The results of our Las Vegas Operations and Encore Boston Harbor for the three months ended June 30, 2021 were impacted by certain COVID-19 pandemic related protective measures and operating schedule modifications, which were no longer in effect during the three months ended June 30, 2022.

The decrease in net loss attributable to Wynn Resorts, Limited for the three months ended June 30, 2022 was primarily related to increased operating revenues at our Las Vegas Operations and Encore Boston Harbor, respectively, partially offset by increased operating expenses associated with higher business volumes at our Las Vegas Operations and Encore Boston Harbor.

The decrease in Adjusted Property EBITDA for the three months ended June 30, 2022 was primarily driven by decreased gaming volumes at Wynn Palace and Wynn Macau, primarily due to certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic, partially offset by increased operating revenues and operating expenses at our Las Vegas Operations and Encore Boston Harbor, respectively. Adjusted Property EBITDA decreased $103.5 million and $54.5 million at Wynn Palace and Wynn Macau, respectively, and increased $93.5 million, $16.8 million, and $19.9 million at our Las Vegas Operations, Encore Boston Harbor, and Wynn Interactive, respectively.

Financial results for the three months ended June 30, 2022 compared to the three months ended June 30, 2021.

Operating revenues

The following table presents our operating revenues (dollars in thousands):


	Three Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating revenues
Macau Operations:
Wynn Palace	$	58,651	$	270,371	$	(211,720)	(78.3)
Wynn Macau	58,583		184,028		(125,445)		(68.2)
Total Macau Operations	117,234		454,399		(337,165)		(74.2)
Las Vegas Operations	561,069		355,066		206,003		58.0
Encore Boston Harbor	210,154		165,241		44,913		27.2
Wynn Interactive	20,375		15,407		4,968		32.2
	$	908,832	$	990,113	$	(81,281)	(8.2)

The following table presents our casino and non-casino operating revenues (dollars in thousands):


	Three Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating revenues
Casino revenues	$	359,585	$	602,746	$	(243,161)	(40.3)
Non-casino revenues:
Rooms	201,298		137,765		63,533		46.1
Food and beverage	229,816		149,142		80,674		54.1
Entertainment, retail and other	118,133		100,460		17,673		17.6
Total non-casino revenues	549,247		387,367		161,880		41.8
	$	908,832	$	990,113	$	(81,281)	(8.2)

Casino revenues for the three months ended June 30, 2022 were 39.6% of operating revenues, compared to 60.9% for the same period of 2021. Non-casino revenues for the three months ended June 30, 2022 were 60.4% of operating revenues, compared to 39.1% for the same period of 2021.

Casino revenues

The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):


	Three Months Ended June 30,
	2022			2021			Increase/ (Decrease)		Percent Change
Macau Operations:
Wynn Palace:
Total casino revenues	$	27,194		$	212,067		$	(184,873)	(87.2)
VIP:
Average number of table games	46			94			(48)		(51.1)
VIP turnover	$	344,462		$	1,811,381		$	(1,466,919)	(81.0)
VIP table games (loss) win	$	(6,671)		$	71,570		$	(78,241)	NM
VIP (loss) win as a % of turnover	(1.94)		%	3.95		%	(5.89)
Table games (loss) win per unit per day	$	(1,600)		$	8,346		$	(9,946)	NM
Mass market:
Average number of table games	231			228			3		1.3
Table drop	$	210,549		$	707,494		$	(496,945)	(70.2)
Table games win	$	41,581		$	163,547		$	(121,966)	(74.6)
Table games win %	19.7		%	23.1		%	(3.4)
Table games win per unit per day	$	1,977		$	7,877		$	(5,900)	(74.9)
Average number of slot machines	634			726			(92)		(12.7)
Slot machine handle	$	130,404		$	421,269		$	(290,865)	(69.0)
Slot machine win	$	4,922		$	18,772		$	(13,850)	(73.8)
Slot machine win per unit per day	$	85		$	284		$	(199)	(70.1)
Wynn Macau:
Total casino revenues	$	39,959		$	142,419		$	(102,460)	(71.9)
VIP:
Average number of table games	40			85			(45)		(52.9)
VIP turnover	$	301,645		$	1,489,912		$	(1,188,267)	(79.8)
VIP table games win	$	14,446		$	39,388		$	(24,942)	(63.3)
VIP win as a % of turnover	4.79		%	2.64		%	2.15
Table games win per unit per day	$	4,006		$	5,111		$	(1,105)	(21.6)
Mass market:
Average number of table games	246			240			6		2.5
Table drop	$	216,154		$	670,400		$	(454,246)	(67.8)
Table games win	$	30,582		$	128,921		$	(98,339)	(76.3)
Table games win %	14.1		%	19.2		%	(5.1)
Table games win per unit per day	$	1,365		$	5,903		$	(4,538)	(76.9)
Average number of slot machines	665			607			58		9.6
Slot machine handle	$	199,312		$	300,523		$	(101,211)	(33.7)
Slot machine win	$	6,329		$	9,223		$	(2,894)	(31.4)
Slot machine win per unit per day	$	105		$	167		$	(62)	(37.1)


	Three Months Ended June 30,
	2022			2021			Increase/ (Decrease)		Percent Change
Las Vegas Operations (1):
Total casino revenues	$	135,345		$	112,775		$	22,570	20.0
Average number of table games	237			218			19		8.7
Table drop	$	564,982		$	427,014		$	137,968	32.3
Table games win	$	138,879		$	99,021		$	39,858	40.3
Table games win %	24.6		%	23.2		%	1.4
Table games win per unit per day	$	6,440		$	4,997		$	1,443	28.9
Average number of slot machines	1,712			1,715			(3)		(0.2)
Slot machine handle	$	1,326,178		$	1,115,149		$	211,029	18.9
Slot machine win	$	89,844		$	78,890		$	10,954	13.9
Slot machine win per unit per day	$	577		$	506		$	71	14.0
Poker rake	$	5,021		$	3,927		$	1,094	27.9
Encore Boston Harbor (2):
Total casino revenues	$	157,087		$	135,485		$	21,602	15.9
Average number of table games	184			195			(11)		(5.6)
Table drop	$	366,222		$	306,070		$	60,152	19.7
Table games win	$	80,263		$	64,874		$	15,389	23.7
Table games win %	21.9		%	21.2		%	0.7
Table games win per unit per day	$	4,794		$	3,654		$	1,140	31.2
Average number of slot machines	2,781			2,171			610		28.1
Slot machine handle	$	1,232,427		$	1,094,178		$	138,249	12.6
Slot machine win	$	99,424		$	89,560		$	9,864	11.0
Slot machine win per unit per day	$	393		$	453		$	(60)	(13.2)
Poker rake	$	1,241		$	—		$	1,241	NM

NM - Not meaningful.

(1) On October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to reduced customer demand levels. On April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

(2) On January 25, 2021, Encore Boston Harbor restored 24-hour casino operations and reopened its hotel tower on a Thursday through Sunday weekly schedule. The property reopened its hotel tower to seven days per week as of September 1, 2021.

Non-casino revenues

The table below sets forth our room revenues and associated key operating measures:


	Three Months Ended June 30,
	2022			2021			Increase/ (Decrease)		Percent Change
Macau Operations:
Wynn Palace:
Total room revenues (dollars in thousands)	$	7,008		$	20,883		$	(13,875)	(66.4)
Occupancy	28.5		%	70.6		%	(42.1)
ADR	$	145		$	180		$	(35)	(19.4)
REVPAR	$	41		$	127		$	(86)	(67.7)
Wynn Macau:
Total room revenues (dollars in thousands)	$	4,762		$	13,427		$	(8,665)	(64.5)
Occupancy	31.3		%	68.0		%	(36.7)
ADR	$	150		$	198		$	(48)	(24.2)
REVPAR	$	47		$	135		$	(88)	(65.2)
Las Vegas Operations:
Total room revenues (dollars in thousands)	$	167,115		$	93,785		$	73,330	78.2
Occupancy	90.5		%	67.2		%	23.3
ADR	$	460		$	333		$	127	38.1
REVPAR	$	417		$	224		$	193	86.2
Encore Boston Harbor (1):
Total room revenues (dollars in thousands)	$	22,413		$	9,670		$	12,743	131.8
Occupancy	94.1		%	87.8		%	6.3
ADR	$	391		$	304		$	87	28.6
REVPAR	$	368		$	267		$	101	37.8

(1) Encore Boston Harbor room statistics have been computed based on 53 days of operation in three months ended June 30, 2021, representing the number of nights hotel rooms were offered for sale to the public.

Room revenues increased $63.5 million, primarily due to higher occupancy and ADR at our Las Vegas Operations and Encore Boston Harbor, respectively. The hotel tower at Encore Boston Harbor was closed pursuant to a COVID-19 related state directive from November 6, 2020 through January 25, 2021, when it reopened its hotel tower on a Thursday through Sunday weekly schedule. Encore Boston Harbor reopened its hotel tower to seven days per week as of September 1, 2021.

Food and beverage revenues increased $80.7 million, primarily due to increased restaurant covers and nightlife revenues at our Las Vegas Operations.

Entertainment, retail and other revenues increased $17.7 million, primarily due to an increase in visitation to our Las Vegas Operations.

Operating expenses

The table below presents operating expenses (dollars in thousands):


	Three Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating expenses:
Casino	$	244,064	$	381,615	$	(137,551)	(36.0)
Rooms	65,070		50,552		14,518		28.7
Food and beverage	185,471		117,106		68,365		58.4
Entertainment, retail and other	74,985		80,922		(5,937)		(7.3)
General and administrative	200,378		197,545		2,833		1.4
Provision for credit losses	(3,487)		441		(3,928)		NM
Pre-opening	4,502		2,495		2,007		80.4
Depreciation and amortization	162,968		183,307		(20,339)		(11.1)
Property charges and other	26,909		5,651		21,258		376.2
Total operating expenses	$	960,860	$	1,019,634	$	(58,774)	(5.8)

NM - Not meaningful.

Total operating expenses decreased $58.8 million compared to the three months ended June 30, 2021, primarily due to decreased casino, entertainment, retail and other, provision for credit losses, and depreciation and amortization expenses, partially offset by increased room, food and beverage, and property charges and other expenses.

Casino expenses decreased $99.0 million and $61.4 million at Wynn Palace and Wynn Macau, respectively. These decreases were primarily due to reductions in gaming tax expense driven by the declines in casino revenues at each of Wynn Palace and Wynn Macau, resulting from the effects of the COVID-19 pandemic, partially offset by increased casino expenses of $10.7 million and $12.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively, primarily due to increased operating costs including gaming tax expense driven by the increase in casino revenues.

Room expenses increased $13.3 million and $4.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively. These increases were primarily a result of higher operating costs related to the increase in occupancy.

Food and beverage expenses increased $67.7 million and $6.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively. These increases were primarily a result of higher operating costs related to the increase in food and beverage revenues as well as higher nightlife entertainment costs associated with increased business volumes at our Las Vegas Operations' nightlife venues.

Entertainment, retail and other expenses decreased $18.9 million at Wynn Interactive, primarily due to decreased marketing costs, partially offset by an increase of $11.2 million at our Las Vegas operations, primarily due to higher operating associated with increased levels of business.

Provision for credit losses decreased $3.7 million and $3.0 million at our Las Vegas Operations and Wynn Macau, respectively and increased $2.1 million at Wynn Palace. These changes were primarily due to the impact of historical collection patterns and expectations of current and future collection trends, as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

Depreciation and amortization decreased $14.5 million at Wynn Palace, primarily due to certain furniture, fixture and equipment assets reaching the end of their useful lives in the first quarter of 2022.

Our property charges and other expenses for the quarter ended June 30, 2022 consisted primarily of impairment of goodwill and other finite-lived intangible assets of $7.5 million and $10.3 million, respectively, and $7.6 million of other restructuring costs related to management's decision to cease the operations of BetBull, Limited ("BetBull"), a subsidiary of Wynn Interactive. Our property charges and other expenses for the quarter ended June 30, 2021 consisted primarily of asset disposals, abandonments and retirements of $1.4 million, $1.2 million, and $1.0 million at our Las Vegas Operations, Wynn Macau, and Wynn Palace, respectively.

Interest expense, net of capitalized interest

The following table summarizes information related to interest expense (dollars in thousands):


	Three Months Ended June 30,
		2022			2021			Increase/ (Decrease)		Percent Change
Interest expense
Interest cost, including amortization of debt issuance costs and original issue discount and premium		$	154,830		$	150,424		$	4,406	2.9

Weighted average total debt balance		$	12,038,961		$	12,105,755
Weighted average interest rate		5.14		%	4.97		%

Interest costs increased primarily due to an increase in the weighted average interest rate.

Other non-operating income and expenses

We incurred a foreign currency remeasurement loss of $10.1 million and a gain of $5.6 million for the three months ended June 30, 2022 and 2021, respectively. The impact of the exchange rate fluctuation of the MOP, in relation to the U.S. dollar, on the remeasurements of U.S. dollar denominated debt and other obligations from our Macau-related entities primarily drove the variability between periods.

We recorded a gain of $1.6 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, from change in derivatives fair value.

Income taxes

We recorded an income tax expense of $0.7 million in each of the three months ended June 30, 2022 and 2021. Income tax expense in both periods primarily related to the Macau dividend tax agreement that provides for an annual payment as complementary tax otherwise due by stockholders of WRM.

Net loss attributable to noncontrolling interests

Net loss attributable to noncontrolling interests was $83.4 million and $42.0 million for the three months ended June 30, 2022 and 2021, respectively. These amounts are primarily related to the noncontrolling interests' share of net loss attributable to WML.

Financial results for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

Operating revenues

The following table presents our operating revenues (dollars in thousands):


	Six Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating revenues
Macau Operations:
Wynn Palace	$	221,976	$	507,697	$	(285,721)	(56.3)
Wynn Macau	193,683		363,679		(169,996)		(46.7)
Total Macau Operations	415,659		871,376		(455,717)		(52.3)
Las Vegas Operations	1,002,255		533,782		468,473		87.8
Encore Boston Harbor	400,950		295,331		105,619		35.8
Wynn Interactive	43,302		26,306		16,996		64.6
	$	1,862,166	$	1,726,795	$	135,371	7.8

The following table presents casino and non-casino operating revenues (dollars in thousands):


	Six Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating revenues
Casino revenues	$	849,447	$	1,118,964	$	(269,517)	(24.1)
Non-casino revenues:
Rooms	371,674		213,955		157,719		73.7
Food and beverage	403,836		217,651		186,185		85.5
Entertainment, retail and other	237,209		176,225		60,984		34.6
Total non-casino revenues	1,012,719		607,831		404,888		66.6
	$	1,862,166	$	1,726,795	$	135,371	7.8

Casino revenues for the six months ended June 30, 2022 were 45.6% of operating revenues, compared to 64.8% for the same period of 2021. Non-casino revenues for the six months ended June 30, 2022 were 54.4% of operating revenues, compared to 35.2% for the same period of 2021.

Casino revenues

Casino revenues decreased primarily due to decreased VIP turnover and table games win and mass market table drop and table games win at our Macau Operations, partially offset by increased table drop, table games win and slot machine win at our Las Vegas Operations and Encore Boston Harbor, respectively. The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):


	Six Months Ended June 30,
	2022			2021			Increase/(Decrease)		Percent Change
Macau Operations:
Wynn Palace:
Total casino revenues	$	141,607		$	397,976		$	(256,369)	(64.4)
VIP:
Average number of table games	56			99			(43)		(43.4)
VIP turnover	$	1,310,017		$	4,011,563		$	(2,701,546)	(67.3)
VIP table games win	$	13,082		$	168,026		$	(154,944)	(92.2)
VIP win as a % of turnover	1.00		%	4.19		%	(3.19)
Table games win per unit per day	$	1,284		$	9,402		$	(8,118)	(86.3)
Mass market:
Average number of table games	232			225			7		3.1
Table drop	$	742,408		$	1,315,012		$	(572,604)	(43.5)
Table games win	$	152,755		$	295,196		$	(142,441)	(48.3)
Table games win %	20.6		%	22.4		%	(1.8)
Table games win per unit per day	$	3,630		$	7,249		$	(3,619)	(49.9)
Average number of slot machines	652			707			(55)		(7.8)
Slot machine handle	$	381,333		$	780,041		$	(398,708)	(51.1)
Slot machine win	$	17,571		$	33,015		$	(15,444)	(46.8)
Slot machine win per unit per day	$	149		$	258		$	(109)	(42.2)
Wynn Macau:
Total casino revenues	$	142,389		$	281,346		$	(138,957)	(49.4)
VIP:
Average number of table games	37			87			(50)		(57.5)
VIP turnover	$	1,188,695		$	3,294,294		$	(2,105,599)	(63.9)
VIP table games win	$	48,475		$	98,022		$	(49,547)	(50.5)
VIP win as a % of turnover	4.08		%	2.98		%	1.10
Table games win per unit per day	$	7,181		$	6,201		$	980	15.8
Mass market:
Average number of table games	247			240			7		2.9
Table drop	$	685,292		$	1,261,290		$	(575,998)	(45.7)
Table games win	$	112,842		$	234,104		$	(121,262)	(51.8)
Table games win %	16.5		%	18.6		%	(2.1)
Table games win per unit per day	$	2,521		$	5,390		$	(2,869)	(53.2)
Average number of slot machines	625			588			37		6.3
Slot machine handle	$	482,851		$	601,794		$	(118,943)	(19.8)
Slot machine win	$	16,941		$	19,431		$	(2,490)	(12.8)
Slot machine win per unit per day	$	150		$	183		$	(33)	(18.0)


	Six Months Ended June 30,
	2022			2021			Increase/(Decrease)		Percent Change
Las Vegas Operations (1):
Total casino revenues	$	259,616		$	192,678		$	66,938	34.7
Average number of table games	232			195			37		19.0
Table drop	$	1,112,898		$	751,545		$	361,353	48.1
Table games win	$	268,043		$	175,674		$	92,369	52.6
Table games win %	24.1		%	23.4		%	0.7
Table games win per unit per day	$	6,372		$	4,979		$	1,393	28.0
Average number of slot machines	1,720			1,631			89		5.5
Slot machine handle	$	2,504,162		$	1,906,409		$	597,753	31.4
Slot machine win	$	170,675		$	129,379		$	41,296	31.9
Slot machine win per unit per day	$	548		$	438		$	110	25.1
Poker rake	$	8,882		$	5,794		$	3,088	53.3
Encore Boston Harbor (2):
Total casino revenues	$	305,835		$	246,964		$	58,871	23.8
Average number of table games	184			197			(13)		(6.6)
Table drop	$	712,417		$	540,632		$	171,785	31.8
Table games win	$	157,054		$	114,251		$	42,803	37.5
Table games win %	22.0		%	21.1		%	0.9
Table games win per unit per day	$	4,716		$	3,201		$	1,515	47.3
Average number of slot machines	2,778			2,031			747		36.8
Slot machine handle	$	2,415,740		$	2,007,973		$	407,767	20.3
Slot machine win	$	194,720		$	164,380		$	30,340	18.5
Slot machine win per unit per day	$	387		$	447		$	(60)	(13.4)
Poker rake	$	2,026		$	—		$	2,026	NM

NM - Not meaningful.

(1) On October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to reduced customer demand levels.

On April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

Non-casino revenues

The table below sets forth our room revenues and associated key operating measures:


	Six Months Ended June 30,
	2022			2021			Increase/(Decrease)		Percent Change
Macau Operations:
Wynn Palace:
Total room revenues (dollars in thousands)	$	20,839		$	37,895		$	(17,056)	(45.0)
Occupancy	37.7		%	65.6		%	(27.9)
ADR	$	166		$	179		$	(13)	(7.3)
REVPAR	$	63		$	118		$	(55)	(46.6)
Wynn Macau:
Total room revenues (dollars in thousands)	$	14,152		$	28,129		$	(13,977)	(49.7)
Occupancy	40.5		%	64.4		%	(23.9)
ADR	$	174		$	219		$	(45)	(20.5)
REVPAR	$	70		$	141		$	(71)	(50.4)
Las Vegas Operations:
Total room revenues (dollars in thousands)	$	298,582		$	133,546		$	165,036	123.6
Occupancy	83.8		%	52.9		%	30.9
ADR	$	448		$	332		$	116	34.9
REVPAR	$	375		$	176		$	199	113.1
Encore Boston Harbor (1):
Total room revenues (dollars in thousands)	$	38,101		$	14,385		$	23,716	164.9
Occupancy	87.4		%	81.1		%	6.3
ADR	$	360		$	294		$	66	22.4
REVPAR	$	315		$	238		$	77	32.4

(1) Encore Boston Harbor room statistics have been computed based on 89 days of operation in six months ended June 30, 2021, representing the number of nights hotel rooms were offered for sale to the public.

Room revenues increased $157.7 million, primarily due to higher occupancy and ADR at our Las Vegas Operations and Encore Boston Harbor, respectively. The hotel tower at Encore Boston Harbor was closed pursuant to a COVID-19 related state directive from November 6, 2020 through January 25, 2021, when it reopened its hotel tower on a Thursday through Sunday weekly schedule. Encore Boston Harbor reopened its hotel tower to seven days per week as of September 1, 2021.

Food and beverage revenues increased $186.2 million, primarily due to increased restaurant covers and nightlife revenues at our Las Vegas Operations.

Entertainment, retail and other revenues increased $61.0 million, primarily due to an increase in visitation to our Las Vegas Operations.

Operating expenses

The table below presents operating expenses (dollars in thousands):


	Six Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change
Operating expenses:
Casino	$	568,143	$	733,581	$	(165,438)	(22.6)
Rooms	123,785		84,087		39,698		47.2
Food and beverage	332,127		191,054		141,073		73.8
Entertainment, retail and other	163,889		154,381		9,508		6.2
General and administrative	397,158		377,319		19,839		5.3
Provision for credit losses	(3,145)		7,808		(10,953)		NM
Pre-opening	6,949		4,122		2,827		68.6
Depreciation and amortization	347,524		368,428		(20,904)		(5.7)
Property charges and other	72,629		11,268		61,361		544.6
Total operating expenses	$	2,009,059	$	1,932,048	$	77,011	4.0

NM - Not meaningful.

Total operating expenses increased $77.0 million compared to the six months ended June 30, 2021, primarily due to increased room, food and beverage, entertainment, retail and other, general and administrative expenses, and property charges and other, partially offset by decreased casino, provision for credit losses, and depreciation and amortization expenses.

Casino expenses decreased $141.3 million and $84.3 million at Wynn Palace and Wynn Macau, respectively. These decreases were primarily due to reductions in gaming tax expense driven by the declines in casino revenues at each of Wynn Palace and Wynn Macau, resulting from the effects of the COVID-19 pandemic, partially offset by increased casino expenses of $30.5 million and $29.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively primarily due to increased operating costs including gaming tax expense driven by the increase in casino revenues.

Room expenses increased $34.5 million and $8.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively. These increases were primarily a result of higher operating costs related to the increase in occupancy.

Food and beverage expenses increased $132.4 million and $13.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively. These increases were primarily a result of higher operating costs related to the increase in food and beverage revenues as well as higher nightlife entertainment costs associated with increased business volumes at our Las Vegas Operations' nightlife venues.

Entertainment, retail and other expenses increased $25.6 million at our Las Vegas operations primarily due to higher operating costs associated with increased levels of business, partially offset by a decrease of $19.2 million at Wynn Interactive, primarily due to decreased marketing costs.

General and administrative expenses increased primarily due to increases of $24.8 million and $8.8 million at our Las Vegas Operations and Encore Boston Harbor, respectively. These increases were primarily attributable to increased payroll, operating costs, and general and administrative expenses required to support higher business volumes, partially offset by decreased general and administrative expenses of $8.4 million and $6.9 million, at Wynn Palace and Wynn Macau, respectively, primarily due to decreased payroll and operating costs attributable to lower business volumes.

The provision for credit losses decreased $6.2 million and $4.5 million at our Las Vegas Operations and Wynn Macau, respectively. The decreases were primarily due to the impact of historical collection patterns and expectations of current and future collection trends, as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

For the six months ended June 30, 2022, pre-opening expenses totaled $6.9 million, which primarily related to reconfiguring the former Le Reve theater space at Wynn Las Vegas. For the six months ended June 30, 2021, pre-opening expenses totaled $4.1 million, which primarily related to restaurant remodels at our Las Vegas Operations.

Depreciation and amortization decreased $31.0 million at Wynn Palace primarily due to certain furniture, fixture and equipment assets reaching the end of their useful lives in the first quarter of 2022.

Our property charges and other expenses for the six months ended June 30, 2022 consisted primarily of impairment of goodwill and other finite-lived intangible assets of $37.8 million and $10.3 million, respectively, and $7.6 million of restructuring costs related to Wynn Interactive's BetBull operations, as well as other contract termination expenses of $10.6 million and asset abandonments of $2.1 million related to Wynn Interactive. Our property charges and other expenses for the six months ended June 30, 2021 consisted primarily of asset abandonments of $3.5 million and $3.2 million at our Las Vegas Operations and Wynn Palace, respectively.

Interest expense, net of capitalized interest

The following table summarizes information related to interest expense (dollars in thousands):


	Six Months Ended June 30,
	2022			2021			Increase/ (Decrease)		Percent Change
Interest expense
Interest cost, including amortization of debt issuance costs and original issue discount and premium	$	306,988		$	303,276		$	3,712	1.2

Weighted average total debt balance	$	12,048,299		$	12,365,615
Weighted average interest rate	5.09		%	4.90		%

Interest costs increased primarily due to an increase in the weighted average interest rate.

Other non-operating income and expenses

We incurred a foreign currency remeasurement loss of $25.2 million and $5.5 million for the six months ended June 30, 2022 and 2021, respectively. The impact of the exchange rate fluctuation of the Macau pataca, in relation to the U.S. dollar, on the remeasurements of U.S. dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.

We recorded a gain of $9.0 million and $5.4 million for the six months ended June 30, 2022 and 2021, respectively, from change in derivatives fair value.

We recorded a $1.3 million loss on extinguishment of debt for the six months ended June 30, 2021 related to the partial prepayment of the Wynn Macau Term Loan.

Income taxes

We recorded an income tax expense of $1.9 million and $1.2 million for the six months ended June 30, 2022 and 2021, respectively. The income tax expense in both periods primarily related to the Macau dividend tax agreement that provides for an annual payment as complementary tax otherwise due by stockholders of WRM.

Net loss attributable to noncontrolling interests

Net loss attributable to noncontrolling interests was $154.7 million and $97.2 million for the six months ended June 30, 2022 and 2021, respectively. These amounts are primarily related to the noncontrolling interests' share of net loss from WML.

Adjusted Property EBITDA

We use Adjusted Property EBITDA to manage the operating results of our segments. Adjusted Property EBITDA is net loss before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, and other non-operating income and expenses. We use Adjusted Property EBITDA to manage the operating results of our segments. Adjusted Property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors, as well as a basis for determining certain incentive compensation. We also present Adjusted Property EBITDA because it is used by some investors to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their EBITDA calculations preopening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, Adjusted Property EBITDA should not be considered as an alternative to operating income as an indicator of our performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net loss, Adjusted Property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

The following table summarizes Adjusted Property EBITDA (dollars in thousands) for Wynn Palace, Wynn Macau, Las Vegas Operations, Encore Boston Harbor, and Wynn Interactive as reviewed by management and summarized in Item 1—"Notes to Condensed Consolidated Financial Statements," Note 18, "Segment Information." That footnote also presents a reconciliation of Adjusted Property EBITDA to net loss attributable to Wynn Resorts, Limited.


	Three Months Ended June 30,							Six Months Ended June 30,
	2022		2021		Increase/ (Decrease)		Percent Change	2022		2021		Increase/ (Decrease)		Percent Change
Wynn Palace	$	(49,950)	$	53,555	$	(103,505)	NM	$	(50,814)	$	80,924	$	(131,738)	NM
Wynn Macau	(40,390)		14,086		(54,476)		NM	(45,072)		30,642		(75,714)		NM
Las Vegas Operations	226,706		133,222		93,484		70.2	386,084		161,303		224,781		139.4
Encore Boston Harbor	63,746		46,916		16,830		35.9	118,996		77,279		41,717		54.0
Wynn Interactive	(20,953)		(40,899)		19,946		48.8	(52,454)		(84,368)		31,914		37.8

NM - Not meaningful.

Adjusted Property EBITDA at Wynn Palace and Wynn Macau decreased $103.5 million and $54.5 million for the three months ended June 30, 2022 and $131.7 million and $75.7 million for the six months ended June 30, 2022, respectively, primarily due to a decrease in operating revenues, partially offset by a decrease in operating expenses. Our Macau Operations for the three and six months ended June 30, 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic.

Adjusted Property EBITDA at our Las Vegas Operations increased $93.5 million and $224.8 million for the three and six months ended June 30, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses. Our Las Vegas Operations for the three and six months ended June 30, 2021 were negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Encore Boston Harbor increased $16.8 million and $41.7 million for the three and six months ended June 30, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses. Operating revenue at Encore Boston Harbor for the three and six months ended June 30, 2021 was negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Wynn Interactive increased $19.9 million and $31.9 million for the three and six months ended June 30, 2022, primarily due to increased operating revenues due to the continued expansion and ramp up of operations and decreased marketing and promotional expenses.

Refer to the discussions above regarding the specific details of our results of operations.

Liquidity and Capital Resources

Our cash flows were as follows (in thousands):


	Six Months Ended June 30,
Cash Flows - Summary	2022		2021
Cash flows from operating activities	$	(157,451)	$	(226,807)

Cash flows from investing activities:
Capital expenditures, net of construction payables and retention	(186,038)		(110,045)
Purchase of intangible and other assets	(9,375)		(15,741)
Proceeds from sale of assets and other	29		3,502
Net cash used in investing activities	(195,384)		(122,284)

Cash flows from financing activities:
Proceeds from issuance of long-term debt	—		50,058
Repayments of long-term debt	(25,000)		(1,205,099)
Proceeds from issuance of Wynn Resorts, Limited common stock	—		841,896
Repurchase of common stock	(149,305)		(4,563)
Proceeds from issuance of subsidiary common stock	2,895		4,662
Proceeds from sale of additional interest in joint venture	50,033		—
Distribution to noncontrolling interest	(16,523)		(6,479)
Dividends paid	(1,291)		(388)
Finance lease payments	(8,602)		(7,784)
Payments for financing costs	(3,113)		(2,152)
Net cash used in financing activities	(150,906)		(329,849)

Effect of exchange rate on cash, cash equivalents and restricted cash	(3,590)		1,641
Decrease in cash, cash equivalents and restricted cash	$	(507,331)	$	(677,299)

Operating Activities

Our operating cash flows primarily consist of operating income (excluding depreciation and amortization and other non-cash charges), interest paid and earned, and changes in working capital accounts such as receivables, inventories, prepaid expenses, and payables. Our table games play is a mix of cash play and credit play, while our slot machine play is conducted primarily on a cash basis. A significant portion of our table games revenue is attributable to the play of a limited number of premium customers who gamble on credit. The ability to collect these gaming receivables may impact our operating cash flow for the period. Our rooms, food and beverage, and entertainment, retail and other revenue is conducted on a cash and credit basis. Accordingly, operating cash flows will be impacted by changes in operating income and accounts receivable, net.

During the six months ended June 30, 2022, the decrease in net cash used in operating activities was primarily due to increased revenues from our Las Vegas Operations and Encore Boston Harbor, which was partially offset by decreases in revenues from Wynn Palace and Wynn Macau. During the six months ended June 30, 2021, the decrease in net cash used in operating activities was primarily due to increased operating revenues, partially offset by an increase in operating expenses and changes in working capital accounts.

Investing Activities

Our investing activities primarily consist of project capital expenditures and maintenance capital expenditures associated with maintaining and continually refining our world-class integrated resort properties.

During the six months ended June 30, 2022, we incurred capital expenditures of $140.8 million at our Las Vegas Operations primarily related to the Wynn Las Vegas room remodel and the reconfiguration of the former Le Reve theater space, and $10.6 million at Encore Boston Harbor, $22.3 million at Wynn Palace, and $7.7 million at Wynn Macau primarily related to maintenance capital expenditures.

During the six months ended June 30, 2021, we incurred capital expenditures of $54.6 million at our Las Vegas Operations primarily related to the Wynn Las Vegas room remodel, and $17.9 million at Encore Boston Harbor, $13.6 million at Wynn Palace, and $9.8 million at Wynn Macau primarily related to maintenance capital expenditures.

Financing Activities

During the six months ended June 30, 2022, we repurchased 2,381,928 shares of our common stock for approximately $137.4 million. In addition, we received a $50.0 million contribution from a noncontrolling interest holder in exchange for a 49.9% interest in certain retail space contributed by the Company to the Retail Joint Venture, used cash of $16.5 million for distributions to noncontrolling interest holders of the Retail Joint Venture, and made quarterly amortization payments under the WRF Term Loan totaling $25.0 million.

During the six months ended June 30, 2021, we received proceeds of $841.9 million from our February 2021 equity offering and used $716.0 million of the proceeds from the equity offering to repay the outstanding borrowings under the WRF Revolver. In addition, we borrowed $50.1 million under the Wynn Macau Revolver, paid $464.7 million of outstanding principal owed under the Wynn Macau Term Loan, and made quarterly amortization payments under the WRF Term Loan totaling $25.0 million.

Capital Resources

The COVID-19 pandemic has materially impacted and is likely to continue to materially impact, our business, financial condition and results of operations. While we believe our unrestricted cash, cash flows from operations and revolver borrowing capacity will enable us to fund our current obligations for the foreseeable future, COVID-19 has resulted in significant disruptions to our operations and to the U.S. and other global economies, which has had and will likely continue to have a negative impact on our operating income and could have a negative impact on our ability to access capital in the future.

The following table summarizes our unrestricted cash and cash equivalents and available revolver borrowing capacity, excluding capacity under intercompany loan agreements, as of June 30, 2022 (in thousands):


	Total Cash and Cash Equivalents		Revolver Borrowing Capacity
Wynn Macau, Limited and subsidiaries	$	1,107,061	$	211,466
Wynn Resorts Finance, LLC (1)	419,598		835,600
Wynn Resorts, Limited and other	488,239		—
Total	$	2,014,898	$	1,047,066

(1) Excluding Wynn Macau, Limited and subsidiaries.

Wynn Macau, Limited and subsidiaries. WML generates cash from our Macau Operations and may utilize proceeds from the WM Cayman II Revolver and its intercompany revolving loan facility with Wynn Resorts, Limited to fund working capital requirements as needed. In July 2022, we drew $211.5 million on the WM Cayman II Revolver for general corporate purposes. We expect to use this cash to fund working capital and capital expenditure requirements at WML and our Macau Operations, and to service our WML Senior Notes and WM Cayman II Revolver. WML paid no dividends during 2021 or the first half of 2022.

The borrowings under the WM Cayman II Revolver bear interest at LIBOR or HIBOR plus a margin of 2.625% per annum until June 30, 2022, the date from which the margin will be 1.875% to 2.875% per annum based on WM Cayman II’s leverage ratio on a consolidated basis, subject to a floor on the interest rate margin of 2.625% per annum through June 30, 2023. The final maturity of all outstanding loans under the Revolving Facility is September 16, 2025.

On May 5, 2022, WM Cayman II and its lenders agreed to waive certain financial covenants in the facility agreement under the WM Cayman II Revolver in respect of the relevant periods ending on the following applicable test dates: (a) June 30, 2022; (b) September 30, 2022; (c) December 31, 2022; and (d) March 31, 2023; and to provide for a floor on the interest rate margin of 2.625% per annum through June 30, 2023. WML, as guarantor, may be subject to certain restrictions on payments of dividends or distributions to its shareholders, unless certain financial criteria have been satisfied through the facility agreement.

If our portion of our cash and cash equivalents were repatriated to the U.S. on June 30, 2022, it would be subject to minimal U.S. taxes in the year of repatriation.

Wynn Resorts Finance, LLC and subsidiaries. Wynn Resorts Finance, LLC ("WRF" or "Wynn Resorts Finance") generates cash from distributions from its subsidiaries, which include our Macau Operations, Wynn Las Vegas, and Encore Boston Harbor, and capital contributions from Wynn Resorts, as required. In addition, WRF may utilize its available revolving borrowing capacity as needed. We expect to use this cash to service our WRF Credit Facilities, the WRF Senior Notes due 2025, the WRF Senior Notes due 2029, and the Wynn Las Vegas (WLV) Senior Notes, and to fund working capital and capital expenditure requirements as needed.

WRF is a holding company and, as a result, its ability to pay dividends to Wynn Resorts is dependent on WRF receiving distributions from its subsidiaries, which include WML, Wynn Las Vegas, LLC, and Wynn MA. The WRF Credit Agreement contains customary negative and financial covenants, including, but not limited to, covenants that restrict WRF's ability to pay dividends or distributions and incur additional indebtedness.

In June 2022, Wynn Las Vegas completed its hotel room remodel for total project costs of $215.2 million, inclusive of approximately $16.0 million of remaining project costs. We are currently reconfiguring the former Le Reve theater space at Wynn Las Vegas. The specially redesigned theater will host an all-new, exclusive theatrical production. We expect to incur between $40 million and $50 million of remaining project costs related to the reconfigured theater and theatrical production, which we anticipate will open during the fourth quarter of 2022.

As previously discussed, on February 15, 2022, we announced our entry into a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor. Upon closing of the related transactions, currently expected to take place in the fourth quarter of 2022, subject to regulatory approvals and customary closing conditions, we expect to receive cash consideration of approximately $1.7 billion in exchange for the sale of such real estate assets to an unrelated third party, and to concurrently enter into a lease agreement whereby the Company will lease such real estate assets for the purpose of continuing to operate the Encore Boston Harbor property. The lease agreement provides for an initial annual minimum rent of $100.0 million for an initial term of 30 years, subject to certain annual rent escalations and renewal provisions. We expect to use the cash proceeds from the sale of the real estate assets for general corporate purposes, which may include the repayment of certain debt obligations.

Wynn Resorts, Limited and other subsidiaries. Wynn Resorts, Limited is a holding company and, as a result, our ability to pay dividends is dependent on our ability to obtain funds and our subsidiaries' ability to provide funds to us. Wynn Resorts, Limited and other primarily generates cash from royalty and management agreements with our resorts, dividends and distributions from our subsidiaries, and the operations of the Retail Joint Venture of which we own 50.1%. We expect to use this cash to service our Retail Term Loan, to fund working capital needs of our subsidiaries, and for general corporate purposes.

Other Factors Affecting Liquidity

We may refinance all or a portion of our indebtedness on or before maturity. We cannot assure you that we will be able to refinance any of the indebtedness on acceptable terms or at all.

Legal proceedings in which we are involved also may impact our liquidity. No assurance can be provided as to the outcome of such proceedings. In addition, litigation inherently involves significant costs. For information regarding legal proceedings, see Note 16, "Commitments and Contingencies."

In April 2016, our Board of Directors has authorized an equity repurchase program of up to $1.0 billion. Under the equity repurchase program, we may repurchase the Company's outstanding shares from time to time through open market purchases, in privately negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We repurchased 2,381,928 shares of our common stock at an average price of

$57.70 per share, for an aggregate cost of $137.4 million under this equity repurchase program during the three months ended June 30, 2022. As of June 30, 2022, we had $662.7 million in repurchase authority remaining under the program.

We have in the past repurchased, and in the future, we may periodically consider repurchasing our outstanding notes for cash. The amount of any notes to be repurchased, as well as the timing of any repurchases, will be based on business, market and other conditions and factors, including price, contractual requirements or consents, and capital availability.

New business developments or other unforeseen events, including related to COVID-19, may occur, resulting in the need to raise additional funds. We continue to explore opportunities to develop additional gaming or related businesses in domestic and international markets. There can be no assurances regarding the business prospects with respect to any other opportunity. Any new development may require us to obtain additional financing. We may decide to conduct any such development through Wynn Resorts, Limited or through subsidiaries separate from the Las Vegas, Boston or Macau-related entities.

Critical Accounting Policies and Estimates

A description of our critical accounting policies is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes to these policies for the six months ended June 30, 2022.

Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted

See related disclosure in Note 2, "Basis of Presentation and Significant Accounting Policies" of Part I in this Quarterly Report on Form 10-Q.

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