Casinos in UAE: Wynn Al Marjan Island expected to generate at least US$1.33bn in annual GGR

The integrated resort is expected to open in 2027.

10/09/24

Wynn Resorts has been granted an exclusive, renewable casino licence for Wynn Al Marjan Island in Ras Al Khaimah.

United Arab Emirates.- Wynn Resorts held a presentation yesterday (October 8) in which it gave more details about the commercial gaming facility operator licence it has obtained for Wynn Al Marjan Island in Ras Al Khaimah in the United Arab Emirates (UAE).

The company said the casino could generate a minimum of US$1.33bn in gross gaming revenue (GGR) annually. The gaming space will cover 225,000 square feet (20,903 square meters), which will be equivalent to 4 per cent of the gross floor area. The company suggested that only one land-based licence would be issued per emirate. The UAE comprises seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.

The cost of the Wynn Al Marjan Island, including land, capitalised interest, and fees, is estimated to be US$5.1bn in inflation-adjusted terms. Project costs alone will amount to US$4.6bn, up from an estimate of US$3.9bn. The presentation forecast pre-opening for the first quarter of 2027. The resort tower is expected to be completed during the fourth quarter of 2025.

Wynn Resorts holds a 40 per cent equity stake in the scheme, with local partners contributing the remaining 60 per cent. The local entities involved are RAK Hospitality Holding and Al Marjan Island. Apart from being an equity investor, Wynn Resorts is set to receive management and licence fees similar to typical luxury hotel agreements, as previously indicated by the company’s management.

Wynn’s equity contribution is projected to be US$1.1bn. Approximately US$900m remains to be spent. Adjusted property earnings before interest, taxation, amortization, and management excess (EBITDAM) is expected to reach at least US$500m.

The complex will feature 1,542 hotel rooms, including 297 suites, six townhouses, and 22 villas, as well as 16 restaurants, six bars and lounges, 130,000 square feet of retail space, and 145,000 square feet of capacity for meetings, incentives, conferences, and exhibitions (MICE) activities.

The General Commercial Gaming Regulatory Authority (GCGRA) has not confirmed any other licence applicants. However, Wynn Resorts expects that two other casino resorts will also receive licenses in the UAE.

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