Wynn Resorts’ plan to build the United Arab Emirates’ first casino resort is widely known — construction is already underway — but investors have yet to factor much value for that project into the share price. Located on Al-Marjan Island in Ras Al Khaimah, the Wynn Al Marjan Island integrated resort is seeing increasing momentum that could lead investors to rethink their positions.
Wynn management is set to host an investor day in Las Vegas early next month. JPMorgan analyst Joseph Greff suggests this could be a positive sign, hinting that UAE regulators may be on the verge of officially approving casino gaming. “The fact that management is willing to host a three-hour investor meeting could likely imply that regulations and license issuance are imminent,” wrote Greff. He added that this event could prompt equity investors to start recognizing the currently discounted equity value related to the project.
The General Commercial Gaming Regulatory Authority (GCGRA), the UAE’s first gaming regulatory body, was formed last year. In July, the group approved a lottery license for an Abu Dhabi-based company, sparking hope it might soon authorize a casino license for Wynn. Investors are keenly awaiting this approval, as the inclusion of a casino would significantly enhance the economics of Wynn Al Marjan Island.
Imminent approval of a gaming license for Wynn in the UAE could be a major advantage, given that competitors are also eager to enter the region. The Wynn property is slated to open in early 2027, potentially granting it a temporary monopoly if it secures a casino permit, as it is further along in development than any potential rivals.
Wynn Al Marjan Island is poised to become the first regulated casino resort in the Arab world, a milestone that carries significant weight for analysts and investors. Public relations will be crucial, especially among locals, as gambling is not traditionally viewed favorably in many countries in the region. However, attitudes in the UAE appear to be shifting.
In September 2023, the UAE established the General Commercial Gaming Regulatory Authority (GCGRA), signaling its intent to regulate and potentially legalize certain forms of gambling. Since then, public curiosity has surged, with online searches for gambling-related terms increasing by 54.38%, according to Dubai Casinos. On average, major news events related to wagering in the UAE lead to a 12.54% increase in related internet searches among citizens.
While Wynn Al Marjan Island is designed as a tourist destination, occupying a small percentage of its overall space for gaming, it’s evident there’s growing interest among locals in land-based gaming venues. Search volumes for terms like “Casino in Dubai” and “Ras Al Khaimah Casino” reflect a public eager to explore the possibilities of physical gaming establishments in these areas.
Regulators have yet to comment on whether there will be restrictions on local visitation to UAE gaming venues, but such limitations could prove challenging and impractical, given the immense oil wealth in the emirates.
