Recently, a groundbreaking development charged the air as the United Arab Emirates (UAE) ushered in a new era by announcing the creation of its inaugural casino gaming regulator, the General Commercial Gaming Regulatory Authority (GCGRA). As speculated by industry analysts at JPMorgan, this monumental formation could potentially pave the way for the introduction of gaming regulations within the country, forecasted to transpire by the close of the year 2023.
Nestled within the territories of the UAE is Al-Marjan Island, the earmarked location for the imminent casino hotel by Wynn Resorts. Analysts at JPMorgan expressed optimism in view of the launch of the GCGRA, labeling it as an ‘event of significant consequence.’ The GCGRA boasts a competent leadership lineup characterized by deep-rooted ties to the gaming operators and regulatory bodies based out of the United States, not to mention their substantial industry expertise.
The squadron of leadership at GCGRA proudly lists among several others, the former CEO of MGM Resorts International, Jim Murren, occupying the Chairman’s seat, and the gaming attorney and lobbyist Kevin Mullally, a veteran of over thirty years in the gaming industry, serving as the Chief Executive Officer.
A pivotal turning point for Wynn Resorts hinges upon the unveiling of the GCGRA in the UAE. Wynn Resorts, on the brink of inaugurating its Wynn Al Marjan Island resort on Al-Marjan Island in 2027, keenly anticipates the emergence of gaming regulations in the Emirates. The resort, costing an estimated $3.9 billion, takes pride in potentially becoming the first-ever casino hotel not only in UAE but across the Arab world, promising a more expansive gaming arena than its counterpart in Las Vegas.
The JPMorgan analysts, despite acknowledging the fluid nature of the timeline surrounding the licensing of Wynn Al Marjan Island, consider this project as a stimulator for the UAE’s maiden series of gaming protocols. The UAE displays a readiness to hasten the procedure, allured by the potential tourism and economic advantages the project promises to usher in.
The unfolding of UAE gaming guidelines is of quintessential importance for Wynn Resorts, for it could potentially dispel the lenders’ apprehensions about investing in a project in a region unfamiliar with regulated wagering. Another appealing prospect is that regulatory lucidity could finally spur the investment community to attribute some value from the project to Wynn’s share price.
Simultaneously, MGM too is keeping a close watch on the regulatory developments in the UAE, maintaining a flexible stance to transition towards casino gaming if approved. They have reserved a considerable 150,000 square feet of space at their non-gaming hotel in Dubai that could very well metamorphose into a casino hotel.
In contrast, rival company Caesars Entertainment recently disclosed its plans to withdraw its name from a non-gaming hotel in the UAE, a decision unveiled following the constitution of the GCGRA. This bold move showcases the changing dynamics and opportunities presented by the advent of the regulated gaming industry in the UAE.
