Fertitta, Landry's CEO, will develop into Wynn Resorts' largest particular person shareholder

The new Wynn Casino and Lisboa Casino in Macau, China.

Bob Henry | Universal Images Group | Getty Images

Billionaire Tilman Fertitta has increased his stake in Wynn Resorts to 9.9%, according to a filing with the Securities and Exchange Commission.

The filing suggests a passive stance, although several people familiar with the matter tell CNBC they suspect Fertitta will demand.

Wynn's stock price rose 9% on Thursday on the news, in line with its 200-day moving average. Over 20 years, the stock showed high volatility but not that strong sustainable growth.

Stock chart iconStock chart icon

Wynn stock versus Marriott and Hilton.

The stock is up about 57% over two decades, compared with Marriott's 20-year gains of more than 950%. Hilton, which went public in 2013, is up more than 500% since its debut.

Wynn Resorts and Fertitta declined to comment on his increased stake.

Fertitta, CEO of Landry's, owns the Houston Rockets and eight Golden Nugget casinos across the United States, including in downtown Las Vegas. He is planning a new 43-story casino resort on the Las Vegas Strip.

He is often outspoken on issues affecting Las Vegas, be it Formula 1 or historic union agreements. Wynn Las Vegas is the premier, ultra-luxe resort on the Strip and has two high-end resorts in Macau. Its customers are wealthier and generally buy and gamble more.

But Wynn's third-quarter earnings fell short of expectations in both Macau and Las Vegas for revenue and adjusted real estate EBITDA, which showed some moderation after a long, torrid stretch.

Analysts occasionally ask the company about plans to develop or sell 162 acres in Las Vegas, including a 128-acre golf course and a 38-acre property across the street from its resort complex on the Strip.

In a June note, Jefferies analyst David Katz estimated the property's value at just over $2 billion, but noted there was “no apparent plan for development or sale.”

Some investors have privately chafed that Wynn is squandering its strength as a luxury brand and its premier hospitality status domestically as it focuses on establishing a new gaming market in the Middle East.

During the company's third-quarter earnings call earlier this month, at an investor day in October and in an interview with CNBC, Wynn CEO Craig Billings focused on the opportunities he sees in the United Arab Emirates.

Wynn Resorts has a 40% stake in a new integrated casino resort being built in Ras Al Khaimah in the United Arab Emirates for an estimated $5.1 billion.

Today, the stock trades for about 70% more than it did when Fertitta bought 6.9 million shares in 2022 at about $54 apiece. This position gave him a 6.2% stake in the company and made him Wynn's second-largest individual shareholder after co-founder Elaine Wynn.

With his 9.9% stake, Fertitta now replaces Elaine Wynn, who founded the company with her then-husband Steve Wynn and left the board at the end of 2020.

Don't miss these insights from CNBC PRO