UAE GAMING MARKET | WYNN

Wynn Resorts CEO Craig Billing is confident in the potential of the UAE gaming market, predicting it could reach between $3 and $5 billion (Dh11 to Dh18.35 billion) over time.

Speaking a conference call during the company’s fourth-quarter financial results, Billings emphasised that the UAE represents the “most exciting” new market for the gaming industry in decades.

Addressing concerns about competition, Billings dismissed any concerns around UAE granting a licence to its competitors for building another integrated gaming resort in the country.

Billings pointed out that designing and building integrated resorts take at least four years. This gives the US-based casino operator a significant head start.

“We don’t believe that every emirate will avail themselves of potential licence by any means…We’re opening in March 2027, so think about the fact that it takes a minimum of four years to design and build an integrated resort. You can imagine that we’re going to have a very, very healthy lead,” he said.

He added that the projections that have been given out for the Wynn Al Marjan are taking into account a second property in the Emirates, noting: “In fact, I don’t think we would be all that fussed if there was a second property, because we believed in the clustering effect, and we believe that it would be good for the industry. But as of now, we don’t see a line of sight on that potential second place that’s very helpful.”

He elaborated that the propensity to spend on luxury hotels and food and beverages in the UAE is extremely high.

Dh18-billion industry

Billings added that topping off Al Marjan is scheduled “towards the end of this year.”

He also noted that the company will also be scheduling a visit to the UAE so that analysts and investors “understand all the amazing things that are happening in the UAE and Dubai in general such as the prevalence of high-value food and beverage, of luxury hotels there, and really the power of that market”.

“We believe the UAE will be a $3 to $5-billion gaming market over time, and certainly the most exciting new market for our industry in decades,” he added.

Billings also announced a new venture while speaking at a conference call. “To support this project and the early work we are doing to build our database and brand awareness in the region, we were pleased to announce in early January that we entered into an agreement to purchase Aspinalls in Mayfair London.

“This small but strategic asset provides a presence in central London, where many of our future Al Marjan customers spend a meaningful amount of time,” Billings shared during the conference call after the fourth quarter 2024 results.

‘Most exciting development in decades’

Billings added that Wynn Al Marjan is “the most exciting development project in the industry.”

“We are expeditiously developing what I believe to be the most exciting development project in the industry in the UAE, a project that will ultimately produce meaningful EBITDA and further diversify our business.

“The opening of that project, coupled with a concurrent reduction in the amount of capex, we will be deploying in North America, will also mark an important inflection point in our free cash flow profile. Our future is bright.”

Expected to open in 2027, the $3.9-billion Wynn Al Marjan will be the first integrated gaming resort in the region.

“Construction of the Wynn Al Marjan Island project in the UAE continued to advance, and the 35th floor of the hotel tower was recently completed and over 4.6 million sqft t of concrete and steel in place. We are confident the resort will be a ‘must see’ tourism destination in the UAE and will support strong long-term free cash flow growth,” he said.

Dh2.3-billion contribution

Wynn Resorts earlier this month said that it completed financing for the development of the Wynn Al Marjan Island project after it obtained a $2.4 billion (Dh8.8 billion) loan from a global syndicate of banks.

In October 2024, Wynn Resorts announced that the General Commercial Gaming Regulatory Authority (GCGRA) of the UAE had issued a Commercial Gaming Facility Operator licence to the entity developing the Wynn Al Marjan Island resort in Ras Al Khaimah, UAE.

The US-based casino operator said its remaining estimated equity contribution to the Wynn Al Marjan project in Ras Al Khaimah is $700-$775 million (Dh2.57-Dh2.84 billion).

The company is expected to contribute $350-375 million in 2025 and $350-400 million in 2026, the company said in its fourth quarter presentation.

Its contribution to the project has reached $631.7 million (Dh2.31 billion) so far, including $99 million contributed in the fourth quarter of 2024.

The company expects to complete the UAE investment cycle in late 2026.

“The UAE is the most exciting new market for integrated resort development in decades. Wynn Al Marjan Island’s broader UAE opportunity is unique in our industry,” it said.

The company expects the Ras Al Khaimah project will add “significant EIBTDAR (cash flow and management fees) to our existing base.”

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Source: Khaleej Times

17th February, 2025