Published on: January 13, 2025, 03:37h.
Last updated on: January 13, 2025, 03:37h.
Last week, Wynn Resorts (NASDAQ: WYNN) made known the purchase of the Crown London, a small, exclusive casino in the Mayfair District. This deal stands out among US gaming acquisitions, but it holds significance.
In a recent report, CBRE Equity Research analyst John DeCree noted that while the Aspinalls casino doesn’t produce substantial cash flow, and London’s VIP casino market has struggled since the pandemic began, there are strategic reasons behind the Wynn acquisition.
According to DeCree, “We view this purchase as strategic for Wynn. Aspinalls caters to high-end VIP gaming customers from London and internationally, including Asia, India, and the Middle East, making it a unique customer acquisition tool for Wynn Al Marjan Island.”
The financial details of the deal, set to close in the second half of the year, were not disclosed. Crown, founded by John Aspinall, is a members-only casino in London’s Mayfair District. Crown Resorts from Australia acquired the venue in 2011.
Strategic Implications of Crown London Acquisition for Wynn’s UAE Debut
While the Crown London purchase may not align with typical US casino operations, it could bring benefits to Wynn as it prepares for the opening of its integrated resort in the United Arab Emirates (UAE) in early 2027. CEO Craig Billings acknowledged this potential.
Billings stated, “This iconic asset acquisition gives us a foothold in a global gateway city and will facilitate visits to our resorts, particularly Wynn Al Marjan Island, opening in the first quarter of 2027 in Ras Al Khaimah, UAE.”
DeCree agrees that Crown London could enhance Wynn’s brand recognition among potential customers who may visit the UAE, including Indian bettors who might be more inclined to travel to the UAE than to Macau.
“Aspinalls hosts events like Bollywood Night, and India is a key source of tourism to the UAE. This acquisition positions Wynn in a gateway city, strengthening the global customer base and boosting brand presence ahead of the UAE grand opening,” added DeCree.
Supporting Wynn’s Presence in UAE
With Wynn Al Marjan Island set to open in approximately two years and the hotel tower scheduled for completion by the end of 2025, the project represents a significant milestone in the Arab world’s casino industry. This development could positively impact Wynn’s stock in the coming months.
Despite this potential, some analysts believe the investment community has yet to fully recognize the UAE opportunity in Wynn’s stock price. Leveraging the Crown London acquisition to drive traffic to the UAE resort upon opening is crucial. Some speculate that investors may be underestimating the UAE’s gaming market potential, which could become the fourth-largest globally. DeCree sees the acquisition as a valuable marketing tool for Wynn.
DeCree concluded, “This high-end gaming asset with a focused customer base provides a deliberate customer acquisition channel compared to a branded hotel strategy or partnership.”