Wynn Resorts is positioning itself as the potential sole casino operator in the United Arab Emirates for several years, potentially creating a monopoly in a market that promises substantial revenue for the Gulf nation.
Group CEO Craig Billings, in an earnings call, expressed confidence in this unique positioning. “It will likely be us and us alone for a multiyear period,” he stated. “After that, it might transform into a duopoly or possibly an oligopoly involving three entities.”
Wynn’s project, the Wynn Al Marjan Island, is slated to open in Ras Al Khaimah, an emirate with a population of approximately 450,000, in 2027. This $3.9 billion venture is expected to exceed the construction costs of other luxury landmarks like Burj Al Arab and Atlantis The Palm in Dubai.
The UAE’s establishment of the General Commercial Gaming Regulatory Authority (GCGRA) in September, a federal entity to oversee the nation’s gaming industry, has heightened interest in the sector. The GCGRA, under the leadership of former MGM CEO Jim Murren, will implement “strict guidelines” for the gaming industry, indicating a shift in the country’s stance on gambling.
The Emergence of Online Casinos in the UAE
While awaiting the opening of Wynn’s physical casino, enthusiasts in the UAE need not wait until 2027. The region already hosts a variety of UAE online casinos, providing immediate access to gaming experiences. These online platforms offer a range of games and betting options, catering to different preferences.
Dubai’s Casino Ventures on Pause
Despite the prospects, Dubai’s casino ambitions seem to be on hold. MGM’s CEO Bill Hornbuckle has discussed the potential for a gaming license in Dubai but recently acknowledged the uncertainty surrounding this. “We think there will be three or four [casinos] in the Emirates. It’s up to each emirate’s ruler,” he said. However, sources reported to Bloomberg that Dubai has temporarily suspended its casino plans due to a thriving tourism sector.
Wynn’s Billings remains optimistic about their exclusivity, citing cultural, demographic, and economic factors influencing each emirate’s decision on hosting integrated resorts.
Caesars, another contender in UAE gambling, recently made a surprising exit from Dubai, converting its non-gaming resort into a Banyan Tree property in partnership with Ennismore and Dubai Holding.
Financial Outlook for Wynn Resorts
The formation of the GCGRA is seen as a boon for Wynn’s financing prospects. According to Billings, this development brings clarity and certainty, essential for attracting investment. Julie Cameron-Doe, CFO of Wynn Resorts, revealed a projected “reasonable” low double-digit tax rate on gross gaming revenues.
Wynn Resorts anticipates high profitability, with projections suggesting that the Wynn Al Marjan Island could generate an adjusted EBITDA as high as $600 million annually, comparable to the success of the established Wynn Las Vegas.
In summary, while Wynn Resorts gears up for a potential monopoly in the UAE’s casino market, gaming enthusiasts in the region can already explore a variety of online casinos, offering immediate access to the excitement of gambling.
