Published on: November 22, 2024, 03:36h.
Last updated on: November 22, 2024, 03:36h.
Wynn Resorts’ Wynn Al Marjan Island integrated resort in the United Arab Emirates (UAE) is anticipated to open in early 2027, possibly a few months earlier, offering the casino hotel a potential long-lasting advantage in the emirates.
The advantage stems from the General Commercial Gaming Regulatory Authority (GCGRA) — the UAE’s primary gaming regulatory body — not hastening the process of approving additional casino licenses in the near future.
The process is moving very deliberately here. The government has been very clear it wants a state-of-the-art, very compliant, very rigorous regulatory regime. Nothing we’re doing will rush that,” said GCGRA Chairman Jim Murren at the Skift Global Forum East 2024 earlier this week.
The GCGRA was established in September 2023. It has been just under two months since the regulatory entity granted a gaming license to Wynn Al Marjan Island, situated in the emirate of Ras Al Khaimah, marking a historic approval in the Arab world.
Pragmatic Approach in UAE Could Benefit Wynn
During the conference, Murren stressed the importance of a pragmatic approach to issuing casino licenses in the UAE, emphasizing the focus on operators to which permits are granted.
That’s Wynn and a lottery operator in Abh Dhabi, indicating that while Wynn won’t have a permanent monopoly in the emirates, it will enjoy a significant head start over any competitors looking to enter the market. Those include MGM Resorts International, the company Murren previously led.
“We’ll see other integrated resorts in the UAE over the next five to 10 years, but Wynn has the head start,” said Murren.
He did not delve into specifics, but it seems that Wynn’s UAE monopoly will last for at least several years.
Earlier this year, MGM confirmed its interest in obtaining a UAE gaming license and revealed that there is space allocated for a casino at its Dubai hotel, which currently operates as a non-gaming property. Due to its status as a premier tourist destination in the region and the substantial petroleum wealth possessed by some locals, the UAE is an attractive market for gaming operators, suggesting that new licenses are worth waiting for over several years.
Long-Term UAE Casino Outlook
While drawing parallels between the UAE today and Las Vegas 30 years ago, Murren did not specify the exact number of gaming venues that may eventually operate in the emirates. It is clear, however, that the number will never rival that of Las Vegas or Macau, and analysts and executives mainly see the UAE as a four-casino market, including Wynn Al Marjan Island.
Four integrated resorts could potentially make the emirates a $3 billion to $5 billion market in terms of annual gross gaming revenue (GGR) and possibly rank it fourth globally behind only Macau, Nevada, and Singapore.
Some analysts estimate the UAE’s total addressable gaming market could reach $8.5 billion, but this figure implies surpassing four casino resorts and adopting more liberalized views towards gaming in neighboring countries.