Tilman Fertitta Now Biggest Individual Investor in Wynn Resorts

Posted on: February 25, 2025, 03:36h. 

Last updated on: February 25, 2025, 03:36h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Fertitta is biggest Wynn shareholder
  • Stake could increase if purchase option is exercised before May 13

Tilman Fertitta is now the largest individual shareholder of Wynn Resorts (NASDAQ: WYNN) with rights to control more than 10% of the casino operator’s shares outstanding.

Fertitta Entertainment
Houston Rockets owner Tilman Fertitta. He’s the largest individual investor in Wynn Resorts and that stake could increase in the months ahead. (Image: ESPN)

That triggered a Form 3 filing with the Securities and Exchange Commission (SEC) by the gaming company in which it disclosed that Fertitta and various affiliate companies own 10.9 million shares with rights to acquire another 1.68 million shares by May 13. Should the Golden Nugget boss exercise that option, his Wynn holdings would top 12.5 million shares and exceed the 10% level. A November 2024 Schedule 13G filing with the SEC indicated Ferittia increased his Wynn stake to 9.9%.

Owners of at least 10% of a publicly traded company’s shares are deemed to be “significant shareholders” or “insiders” under Section 16 of the Securities Exchange Act and must file with the SEC as a result.

Section 16 of the Exchange Act applies to an SEC reporting company’s directors and officers, as well as shareholders who own more than 10% of a class of the company’s equity securities registered under the Exchange Act,” according to the commission. “The rules under Section 16 require these ‘insiders’ to report most of their transactions involving the company’s equity securities to the SEC within two business days on Forms 3, 4, or 5.”

Section 16 also has safeguards in place to prevent sizable shareholders from being short-term traders in a company’s stock and to prevent short-selling of the shares. Neither situation is applicable to Fertitta who in the more than two years since initiating his Wynn stake, has given no indication he’s bearish on the gaming equity.

Rumors Abound About Fertitta’s Wynn Intentions

Since it was revealed in October 2022 that Fertitta invested in Wynn, there’s been no shortage of speculation regarding what the Houston Rockets owner’s intentions with the gaming company might be.

Predictably, much of that conjecture has centered around Fertitta turning activist and pushing to acquire Wynn. That rumor has some credibility because he’s previously acquired companies in which he started initially passive investments and it’s widely known he’d like to add a Las Vegas Strip casino hotel to his expansive list of holdings.

Analysts disagree that Fertitta is a likely buyer of Wynn outright. There is, however, some consensus that if he were to turn activist, it’d be more to prod the gaming company to leverage its enviable brand recognition for domestic expansion purposes.

There’s also belief that his recent appoint as US ambassador to Italy further diminishes the likelihood of him making a move to buy Wynn.

Breakdown of Fertitta’s Wynn Investment

According to the new SEC filing, Fertitta himself directly owns 161,925 Wynn shares while another 10,000 shares are controlled by Fertitta Entertainment Inc. Hospitality Headquarters Inc., a holding company, owns 6.86 million shares and Fertitta Entertainment LLC owns 3.86 million shares.

Hospitality Headquarters, in which Fertitta is the lone shareholder, is the entity that has the option to acquire more Wynn equity prior to May 13. Even if that option isn’t exercised, Fertitta would remain the largest individual Wynn investor as his 9.9% stake exceeds the 8.7% held by Elaine Wynn ––Steve Wynn’s ex-wife.