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Wynn's Partner Plays Key Role

LAS VEGAS--Among the friends and business associates of Steve Wynn expected to attend today's Le Reve groundbreaking ceremonies, one man stands above the rest, insiders say.

Wynn Resorts Vice Chairman Kazuo Okada gets a lot of credit from insiders discussing last week's $450 million IPO of the company's stock.

If Okada and Wynn hadn't each kicked in an additional $75 million last week, the IPO might not have flown, jeopardizing prospects for the $1.85 billion megaresort Las Vegas business leaders are counting on to fuel a new wave of valley growth.

"Thank God for Kazuo Okada," one insider said of Wynn's partner. "If not for Okada, I don't know where we'd be."

Okada's $75 million purchase of almost 5.8 million shares of Wynn Resorts stock helped complete the IPO, the single biggest obstacle to finalizing Wynn Resorts' financing package.

"The additional investment underscores both of their commitments - to Le Reve and to each other," JP Morgan casino industry analyst Harry Curtis said. "But (Okada's investment) is a sound one. Anyone who's invested early with Steve Wynn has enjoyed very strong returns."

Before Wynn's Securities and Exchange Commission-mandated quiet period began during the IPO, the Strip developer said Okada was first-rate.

"He's a good man and a good partner," Wynn said.

Wynn was unavailable for comment Wednesday.

His affection for Okada has only increased, insiders say. "Okada's been steadfast, a rock," one source said. "And Steve appreciates him."

Like Wynn, Okada's a 60-year-old who built a company and a personal fortune.

He owns a controlling interest in Japan's Aruze Corp., one of the biggest gaming device manufacturers in the world. Okada founded Aruze Corp. in 1969 and now serves as its president.

Aruze shares trade on Japan's Jasdaq market, and its market capitalization is about $1.1 billion.

Okada began his career in the juke box and pachinko machine businesses, and is credited with creating the pachislot machine, a pachinko-slot machine hybrid.

Unlike most slot machines, where the reels stop on their own after the player pulls the device's arm or pushes a button to start the rotation of the reels, a pachislot machine player stops each individual reel by pushing a button in front of that reel.

The pachislot machines are very popular in Japan; Aruze has sold more than 1 million pachislot machines to date and is the largest manufacturer of the devices.

Okada was unavailable for comment Wednesday. When he first invested in Wynn's project two years ago he released a statement that noted: "I'm fascinated with Steve Wynn's vision for what is certain to be the greatest attraction on the most fabulous street in the world, the Las Vegas Strip.

"The investment is an exciting financial opportunity, but more importantly it's a chance to be in on the ground floor of what promises to be the next generation of Las Vegas' growth," the statement continued. "Under Mr. Wynn's direction, this project will reinvent not just a hospitality offering but an entire section of the Strip and Las Vegas itself."

"These two guys, they fit hand and glove," said one Wall Street source familiar with the duo who spoke on condition of anonymity. "Writing checks is easy, but Okada's put up with two years of dental visits from regulators and tax authorities. Wynn's invested a lot of personal capital in Okada, and Okada's invested his time and his money with Mr. Wynn. They share the same vision - they're business soulmates."

When Wynn and his investment banking team were forced to lower the IPO's price three times, the shares offered to the public were priced at $13, a number less than the $16.14 average price Okada had paid for his original shares.

By buying the additional 5.8 million shares Okada lowered the average price of his shares to $15.38.

"That's still more than the public's paying, but he benefited from some dollar-cost averaging," the Wall Street analyst said.

Wynn Resorts shares closed Wednesday at $12.50, down 14 cents in trading on the Nasdaq market.

The bottom line for Wynn Resorts is that Wynn and Okada together control about 70 percent of the company's shares, insiders say.

"This is a partnership in the truest sense of the word," one analyst said. "Friends like Okada are hard to find, and Wynn knows it."

Wynn Resorts Wednesday finalized its $340 million bond offering, the final component of its financing package, insiders said..

"Everything's done," an inside source said. "We're all set for the groundbreaking."

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