Casino Economics: Wynn EBITDA per room per day is higher than their ADR

I am becoming more and more fascinated by the economics of running a Casino. They are the largest hotels in the world, yet the hotel is clearly a mere means to the end of making money from gambling, retail and entertainment. I was looking at Wynn a presentation at given at a Goldman Sachs Conference in June. Below are shots of two of the slides. Look at the Average Daily Rate for Wynn for Q1 2008 - $298 (comparing very favourably to Bellagio and the Venetian). Then look at the slide on EBITDA per room per day. Wynn lists their EBITDA per room per day at $378. Read it again. At a property with an ADR of $298, the business can generate an EBITDA of $378 per room per day. Amazing! Have I read this right? The revenue from gaming (and to a lesser extent retail and entertainment) makes the room revenue seems all but irrelevant. What a business!

ADR Slide


EBITDA per room per day slide