MGM Resorts has officially filed its application for a casino license in the United Arab Emirates (UAE), seeking to become the second major operator to enter the region’s burgeoning gaming industry.
The move was confirmed by Bill Hornbuckle, CEO of MGM Resorts, during his keynote at the Skift Global Forum in New York on September 19. It comes as Wynn waits in the wings for a UAE casino license, with its Ras Al-Khaimah project already under construction.
Hornbuckle explained that the license application was submitted to the Abu Dhabi government, with the final decision requiring both federal and local approval.
“The way it will work, the federal government, the Abu Dhabi government, will approve it,” Hornbuckle said. “We’ve applied for something there and hopefully will win something there. Then each ruler will have their say. It’s like a state, where each state says yes or no.”
Hornbuckle expressed optimism that more clarity about the federal mandate and regulatory oversight would emerge by the end of the year. MGM’s ties to the UAE stem from a longstanding relationship with the region, particularly through its past partnership with Dubai World, a collaboration that led to the development of CityCenter on the Las Vegas Strip in 2007.
Bill Hornbuckle, CEO of MGM Resorts
MGM bought out Dubai World’s stake in the joint venture in 2021 for $2.1 billion, later selling off the Aria and Vdara real estate for $3.89 billion in the same year.
MGM’s presence in the UAE is not entirely new. The company is already working on a major project in Dubai, developing a luxury resort on Jumeirah Beach in partnership with local firm Hospitality and Leisure.
This project, set to include brands MGM, Bellagio, and Aria, will feature 1,500 hotel rooms and several podiums, which Hornbuckle indicated could potentially accommodate gaming should Dubai decide to legalize it. However, Dubai has yet to provide a clear stance on gambling.
MGM had boots on the ground in Dubai since 2015, Hornbuckle said earlier this year at the ICE London conference. He suggested that Abu Dhabi might take the lead in legalizing gaming, given its status as the UAE capital.
However, even if casino gaming is legalized, it will likely remain off-limits for Emirati citizens, with the industry catering mainly to the UAE’s large expatriate population, which makes up around 80% to 90% of the country’s residents.
The competition for a casino license in the UAE is fierce. Wynn Resorts is already constructing a $4 billion property on Al Marjan Island in Ras Al-Khaimah, another emirate in the UAE. The resort, which is expected to open in 2027, is awaiting its casino license from the General Commercial Gaming Regulatory Authority (GCGRA).
Render of Wynn Resorts' property at Al Marjan Island
The UAE’s shift towards gaming reflects a broader trend of loosening restrictions in the region, with countries like Saudi Arabia and Qatar also ramping up efforts to attract global tourists. The creation of the GCGRA last year signaled a shift in official attitudes towards gambling, which remains forbidden under Islamic law.
Hornbuckle remains hopeful that MGM will secure a license, particularly given its experience and history in the region. “It’s a huge travel market,” he said, noting the potential for attracting tourists from countries like India, China, and other parts of the Middle East. “We’re excited by what it presents and we hope to be there.”
Original article: https://www.yogonet.com/international/noticias/2024/09/20/79337-mgm-seeks-to-enter-uae-market-with-casino-license-application-in-abu-dhabi-
