Steve Wynn’s comments were taken out of context, but billionaires should divest themselves of the term “poor people”.
Casino developer Steve Wynn made derogatory comments in a Wednesday night presentation to investors that has caused a public backlash. His comments, which were not meant for public consumption, are being portrayed as a condemnation of “poor people“.
Steve Wynn was discussing the value of his casino company’s brand, which is known for luxury. The developer said Wynn Resorts’s brand resembles luxury goods, which are meant to attract people of wealth and distinction.
“Rich People Only Like Being around Rich People”
Wynn said that outlets which cater to the rich are still going to attract people without money, though. That is when he said something which has set off a whirlwind of controversy.
The quote which has attracted so much disdain is this one: “Rich people only like being around rich people. Nobody likes being around poor people, especially poor people.”
Gaff of Romney-Esque Proportions
Such a statement taps the same sort of public outrage that Mitt Romney’s “47 percent” quote did in the 2012 election. Millionaires or billionaires making condescending statements about less-affluent Americans are sure to raise ire.
As always, the full quote provides better context. Steve Wynn was trying to explain that Wynn Resorts casinos are less like a hotel chain or resort chain, and more like fashion and fragrance brands like Chanel or Louis Vuitton.
“Sort of Chanel or Louis Vuitton”
Steve Wynn said, “This company caters to the top end of the gaming world. We’re sort of Chanel or Louis Vuitton, to use the comparison, the metaphor of the retail business.”
He continued with the comparison, then pivoted to make his point, which is certainly different than the one-sentence quote would imply. Wynn continued, “But unlike Chanel and Louis Vuitton, we are able in our business to cater to all of the market. By making our standards so high…that everybody wants to be in the building.”
“Nobody Likes Being around Poor People”
So he was trying to say that Wynn Resorts welcomes the full range of guests, which (it goes without saying) a casino needs in order to survive. That is when his infamous quoted appeared: “Or to put it in a more colloquial way, rich people only like being around rich people. Nobody likes being around poor people, especially poor people.”
Steve Wynn finished his quote by saying, “So we try and make the place feel upscale for everyone. That is to say we cater to people who have discretion and judgment and we give them a choice and we are consistent in that.”
Marketing to High Rollers and Low Rollers
His point was he tries to cater to the wealthy elite, knowing that downscale visitors are going to appreciate the opulence, too. Anyone going to a casino-resort is going to want to soak up the ambiance — not just a few rich patrons. Thus, Steve Wynn is telling his potential investors, the kind of grand opulence he demands is meant to appeal to the mass market players, as well as the VIP high rollers.
All that being said, it is never a good idea for a billionaire to use the term “poor people”. It is a demeaning term, especially when Steve Wynn appears to be talking about Wynn Resorts customers. The people he seems to be describing are not likely to be considered poor by most Americans. By the standards of a billionaire, of course, most people are “poor”.
Impact on Wynn Resorts
Lucky for Steve Wynn, he is not a politician or a celebrity. Such a statement likely would kill his elect-ability or marketability. Life for a casino executive is considerably more forgiving. Most of the people commenting on social media are not likely to be going to the Wynn Las Vegas or Encore.
Even less likely is the chance that Steve Wynn’s most important customers from a revenue standpoint — Macau gamblers — are going to hear the comments. Much of the growth of Wynn Resorts over the past decade has come from the gaming revenues generated by the Wynn Macau. The Wynn Palace opens on the Cotai Peninsula in Macau later in 2016.
Gamblers who might otherwise visit the Wynn Boston Harbor, located in Everett, Massachusetts, might be less likely to visit the first-ever Boston-area casino. Once again, the opening of the Wynn Boston Harbor is still years away, so the quote is likely not to make a big impact.
