The landscape of gaming in the United Arab Emirates is on the brink of transformation, with industry analysts forecasting a potential gross gaming revenue of $3 billion to $5 billion as casino operators seek to lay the groundwork for operations.
This optimism comes from Morgan Stanley, which highlighted the UAE’s capacity to become a prominent gaming destination, capable of attracting significant tourism revenue.
Despite the challenges posed by cultural norms, the UAE is positioning itself to embrace casino gaming, which could significantly contribute to economic growth. If successful, this could lead to the establishment of multiple integrated resorts, potentially surpassing the gaming offerings of markets like Singapore.
Currently, the UAE has yet to legalize casino gaming, but the interest from major players such as Wynn Resorts and MGM Resorts signifies a changing shift. Wynn is developing its Wynn Al Marjan Island resort in Ras Al Khaimah, while MGM is exploring opportunities in Abu Dhabi.
In May, Wynn released new images of its upcoming United Arab Emirates luxury resort, Wynn Al Marjan Island, currently under construction in Ras Al Khaimah. The development is the company’s first beachfront resort and is being built on “a beautiful island of almost 62 hectares jutting into the Arabian Gulf,” as per a statement.
Wynn Resorts is developing the project in partnership with Marjan and RAK Hospitality Holding. It is anticipated to be the first integrated gaming resort in the Middle East North Africa (MENA) region.
Meanwhile, as of last month, MGM had officially filed its application for a casino license in the 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.
The prospect of these developments has spurred excitement in the industry, as Wynn’s resort alone is projected to generate around $1.4 billion in annual revenue.
However, the growth of this sector hinges on regulatory decisions and whether local residents will be permitted to gamble. Analysts stress that allowing local participation could dramatically enhance the market’s profitability, considering the presence of affluent individuals in the UAE.
Morgan Stanley cites the country’s busy airports, the high number of ultra-high-net-worth individuals, and the fact that it boasts more 5-star hotels than Singapore as factors that could drive growth. However, such figures are dependent on whether locals are permitted to gamble.
Morgan Stanley added that the UAE could end up with more IRs than Singapore’s duopoly and with a favorable gaming tax of between 10% and 12%, albeit not yet confirmed.
Original article: https://www.yogonet.com/international/noticias/2024/10/01/80506-uae-gaming-revenue-projected-at-35-billion-as-wynn-mgm-eye-casino-operations
