MGM Resorts has officially applied for a casino license in the UAE, becoming the first known operator to take such a step in this emerging market. MGM CEO Bill Hornbuckle announced this news directly at the 2024 Skift Global Forum, highlighting the company's strategic move to expand its global operations to the Middle East.
Strategic Application in Abu Dhabi:
According to Hornbuckle, MGM has targeted Abu Dhabi for its casino license application, a region well-suited for such investments. "Yes, we have applied. We have applied in Abu Dhabi," he reported to Skift. The CEO elaborated on the process, noting "the federal government of Abu Dhabi will approve, we have applied, and we hope to obtain the license there. Each ruler has their own city and state. Everyone can say yes or no."
The UAE Gaming and Casino Regulation Authority (GCGRA) began accepting gaming license applications in July, a significant move that MGM was quick to engage in. The application process includes preliminary reception and screening, followed by the opportunity to apply for a casino license. Notably, MGM's plans to enter the UAE have not yet included any operational hotels in the region, instead focusing on the casino plans as a main priority.
"I hope and believe that this year we will learn more about the authorization from Abu Dhabi and the federal government, and start from there," Hornbuckle expressed, indicating his hope for the necessary approvals to begin operations. Despite previous setbacks in non-gaming projects in Abu Dhabi, MGM has refocused on obtaining a casino license, aligning with its core business interests.
Competitive Landscape and the Status of Wynn Resorts:
As MGM garners attention for its license application, Wynn Resorts has also invested heavily in the UAE, with a $3.9 billion resort under construction in Ras Al Khaimah. Wynn has begun actual development, but its license status remains unconfirmed, adding an interesting dynamic to the competition.
MGM's relationship with the UAE is not new, having previously collaborated with Dubai World on projects like the CityCenter in Las Vegas. Looking ahead, MGM plans to continue leveraging these relationships to enhance its influence in the UAE, particularly in Abu Dhabi, which Hornbuckle noted could be the first city to venture into the casino gaming industry.
The UAE has a large expatriate population, offering MGM a significant market opportunity. Hornbuckle emphasized the potential to attract a global audience, noting: "This is a huge tourism market... Dubai Airport is one of the largest airports, and I think it will become the largest airport in the world." This strategic move aims to position MGM as a leader in the UAE gaming industry, attracting a diverse international clientele.
