Date: October 5, 2024, 06:33h.
Last updated on: October 5, 2024, 06:33h.
Wynn Resorts (NASDAQ: WYNN) has confirmed that it has been granted the first commercial casino license in the history of the United Arab Emirates (UAE) and the Middle East as a whole. This development paves the way for Wynn Al Marjan Island to feature a gaming venue.
The Las Vegas-based gaming company made the announcement late Friday, mentioning that the General Commercial Gaming Regulatory Authority (GCGRA), the UAE’s first gaming regulatory agency, has approved a commercial gaming facility operator permit. The GCGRA, established last year, has not issued a statement regarding the Wynn approval, but the casino operator stated that it won the license after a thorough review by the regulatory body.
Wynn Resorts expresses gratitude to the GCGRA for the confidence and trust represented by the license grant and is honored to be the recipient of the first commercial gaming facility license in the UAE,”
Situated in Ras Al Khaimah, the $3.9 billion Wynn Al Marjan Island has been undergoing construction for several months and is projected to open in early 2027. The development of the property is a joint venture between the gaming company and RAK Hospitality Holding.
Wynn UAE Casino’s Potential Impact on Gaming Industry
For years, regulated gaming has been restricted in the Middle East, but recent developments suggest that the UAE could change that narrative. These include the establishment of the GCGRA in 2023 and the approval of a lottery license for an Abu Dhabi-based company in July.
Despite financial obligations for the project being less than $1 billion, Wynn took a gamble on the UAE development without certainty of receiving a casino license. This risk has paid off.
In the long run, this move by Wynn could prove to be forward-thinking, as some analysts believe that at maturity, the UAE casino market could generate up to $5 billion in annual gross gaming revenue (GGR). The emirates are enticing to gaming companies due to their vast oil wealth, growing number of high-net-worth residents, and status as a prime tourist destination in the region.
Furthermore, opportunities for global growth in the gaming industry are limited. For instance, Macau is unlikely to add more licensees and the Singapore duopoly is secured for close to another 30 years.
Upcoming Update on Wynn’s UAE Casino
Investors may soon receive more details about Wynn’s UAE casino project, as the company is hosting an event for analysts and institutional investors on Tuesday, October 8 at its Las Vegas Strip integrated resort.
“Craig Billings, Chief Executive Officer, and other members of the Wynn Resorts global leadership team will present on the resort’s expected financial performance. The Analyst & Investor Update Meeting will start at 11:30 a.m. Pacific Time and end around 2:30 p.m. Pacific Time,” as per a statement from the gaming company.
When the invitation-only event was announced, analysts speculated that it was an indication Wynn would be approved for a casino license in the UAE.