Posted on: November 4, 2024, 03:23h.
Last updated on: November 4, 2024, 03:23h.
Wynn Resorts’ (NASDAQ: WYNN) under construction casino resort in Ras Al Khaimah, United Arab Emirates (UAE) could position the emirate to become the fourth-largest gaming market in the world.
That’s the take of Max Tappeiner, president of Wynn Resort Al Marjan Island. Last month, the General Commercial Gaming Regulatory Authority (GCGRA) granted the gaming license for the Wynn venue, marking the first such approval in the region’s history.
With Al Marjan, we’re excited for this opportunity,” Tappeiner at the Future of Ras Al Khaimah Conference last Friday. “There are only three major gaming markets in the world right now, and we think this could become the fourth.”
Presumably, he implied the three major gaming jurisdictions are Las Vegas, Macau, and Singapore. Located in Ras Al Khaimah, the $3.9 billion Wynn Al Marjan Island has been under construction for several months and is expected to open in early 2027. Development of the property is a partnership between the gaming company and RAK Hospitality Holding.
Credibility in Wynn Assumptions on Ras Al Khaimah
It is possible that if other emirates approve casino gaming, UAE as a whole could eventually ascend to the fourth spot among global gaming markets. Some analysts believe that with contributions from other integrated resorts in the future, the UAE could be a $3 billion to $5 billion market in terms of annual gross gaming revenue (GGR).
That forecast is based on Wynn Al Marjan Island generating $1.4 billion in yearly GGR and several other licenses being granted. For now, MGM Resorts International (NYSE: MGM) is the only other casino operator that’s publicly declared plans to bid for a UAE license, but if the market there continues liberalizing, it’s likely to draw some of the industry’s other familiar names.
Specific to the Wynn property, it’s located within an eight-hour flight of 96% of the world’s population. Tappeiner added at the conference that Ras Al Khaimah itself is within that range for 76% of the global population. That emirate is about 52 miles from Dubai.
Proximity to Dubai could prove vital for Wynn Al Marjan Island because Dubai is the tourist hub of the UAE and is home to scores of glitzy hotels that attract the well-heeled clientele any gaming venue wants to lure. With Wynn Al Marjan likely to have a multi-year head start as the UAE’s lone casino resort, it could benefit from its accessibility to Dubai.
Wynn Could Be at Right Place at Right Time
Due to its emphasis on non-gaming amenities, such as dining, entertainment, and posh hotel rooms, Wynn could be the ideal operator for a new gaming market such as the UAE due regional views and reluctance regarding wagering.
The casino at Wynn Al Marjan is expected to occupy just 4% to 5% of the venue’s total square footage, confirming gaming won’t be the focal point of the property.
“It takes somebody exceptional to build a building like this, somebody who is committed to the absolute best and will not compromise on their vision. We intend to drive this asset as fast as possible to ensure we fulfill the vision,” said Tappeiner at the conference.
