Nearly a month ago, there was a Wynn Resorts conference where the company shared its third-quarter earnings. Chief Executive Craig Billings took the stage to give some updates on the development for the resort on Al-Marjan Island in Ras Al Khaimah, UAE. While the project was announced in early 2022, the CEO did mention that a casino would be part of the resort, even though all forms of gambling are forbidden in the country. The goal is to finish the project sometime in 2026 and continue Wynn’s diversification efforts. d3sb
We recently met with casino industry expert Tareq Al-Badr, a casino industry expert at arabic-casinos.org to discuss his perspective on the new updates and the opening of Wynn Resort in UAE.
What do you think about the decision made by the Las Vegas-based company to invest and expand its brand in the UAE? 2f5u26
When it was announced at the beginning of 2020, it was quite a surprise. We can identify two different kinds of establishments based on how the corporation manages its resorts in Boston, Las Vegas, and Macau. The resort and hotel are the first and most significant sources of income, whereas the second source comes from its gambling sector. Which model the corporation is considering for its new project in the UAE is extremely important to know. The gambling component may be more challenging to implement, but it will quickly establish a monopoly until competition arises. The UAE is one of the most popular tourist destinations, but the resort and hotel sector is very profitable.
Are there any estimates of how much the new project will cost and whether there has been any analysis of what the generated return on investment could be? 3b6l4j
As we know, there was no information given by the CEO of Wynn Resorts on the project’s cost; however, a $2 billion price tag has been tossed around quite regularly. We know that Wynn Resorts will partner with RAK Hospitality Holding LLC, a local hotel developer, who will construct and execute that aspect of the project. Once the project is up and running, the US company could earn a 5% fee of net revenue and an incentive-based management fee based on percentages of the establishment’s earnings before interest, taxes, depreciation, and amortization. The company could also own a small portion of the real estate, which in a country like the UAE, the dividends it could receive in the future can be sky-high. We could see a 20% return on investment once everything is sorted and ready to go.
In your opinion, can the gaming side of the project be incorporated? 516j4d
This is where things can get a bit difficult for the investors and the overall project.f you didn’t know, most gambling activities are strictly forbidden and illegal in the UAE. Islamic law is the foundation of the istration, and the faith views gambling as a grave sin. When the CEO of Wynn Resorts confirmed a casino he referred to slots, blackjack, roulette, and all sorts of table games that you can find in a classic brick-and-mortar casino. In my eyes, this could mean two things; either the company is in deep talks behind closed doors with the UAE government to lighten the restrictions, or it is just a pitch or imagination of what the project can become. Knowing the harsh penalties for running any casino in the UAE, I cannot see Wynn Resorts getting close to an agreement with the government to lift the gambling restriction soon.
Will this project be the biggest one for Wynn Resorts, and can you see it becoming a success? 1l1y6n
With all the information coming out, and as the company announced that they will give more details at the start of 2023, this will undoubtedly be the biggest-ever project for the US-based company. Regarding the resort and hotel side of the project, I can see them being successful, considering the county’s number of tourists each year. However, it will all come down to whether the gambling aspect could be implemented by the time it is up and running in 2026.
Final Thoughts 4p6d5
The company has not yet provided any information on potential negotiations with the UAE government, but they still intend to establish a casino as part of the resort. The government has not announced any changes to gaming laws. Therefore the initiative as a whole remains uncertain. Even so, many investors and other experts from the casino industry agree with Tareq Al-Badr’s opinion, and the project is set for success. New details should be uncovered in the company’s press release at the start of 2023, so we can only hope things will work out and the UAE will greenlight the project.
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