Craig Billing, CEO of Wynn Resorts, is confident in the potential of the UAE gaming market and predicts that it could reach a size of $3 billion to $5 billion (11 billion to 18.35 billion dirhams) over time.
During the company's Q4 earnings call, Billings emphasized that the UAE is the most exciting new market for the gaming industry in decades.
When discussing concerns about competition, Billings dismissed worries about the UAE issuing licenses to competitors to build another integrated gaming resort in the country.
Billings noted that designing and building an integrated resort takes at least four years. This gives the American casino operator a significant head start.
"We believe not every emirate will utilize the potential licenses in any way... We will open in March 2027, so think about it, designing and building an integrated resort takes at least four years. You can imagine, we will have a very, very large lead," he said.
He added that the forecasts for Wynn Al Marjan Hotel have considered the UAE's second hotel, noting, "In fact, if there is a second hotel, I think we wouldn't be so worried because we believe in the clustering effect, we believe it is beneficial for the industry. But as of now, we haven't seen any potential second hotel that would be very helpful."
He elaborated that consumers in the UAE have a high tendency to spend on luxury hotels and food and beverages.
A 18 billion dirham industry
He added: "We believe that over time, the UAE will become a gaming market worth $3 billion to $5 billion."
Billings also announced a new business during the call. "To support this project and the early work we have done to build a database and brand recognition in the region, we are pleased to announce in early January that we have reached an agreement to acquire Aspinalls located in the Mayfair district of London."
Billings stated in the Q4 2024 earnings call: "This small but strategically significant asset provides us with a presence in the heart of London, where many of our future Al Marjan customers will spend a lot of time."
"The most exciting development in decades"
Billings added that Wynn Al Marjan is "the most exciting development project in the industry."
"We are rapidly developing what I believe is the most exciting development project in the UAE, which will ultimately generate meaningful EBITDA and further diversify our business.
"The launch of this project, along with the reduction in capital expenditures deployed in North America, will also mark an important turning point in our free cash flow situation. Our future is bright."
The $3.9 billion Wynn Al Marjan is expected to open in 2027, becoming the region's first integrated gaming resort.
"Construction of the Wynn Al Marjan Island project in the UAE continues to progress, with the 35th floor of the hotel building recently completed, and over 4.6 million square feet of concrete and steel in place. We believe that the resort will become a 'must-see' tourist destination in the UAE and will support strong long-term free cash flow growth," he said.
A 2.3 billion dirham donation
Earlier this month, Wynn Resorts stated that the company obtained a $2.4 billion (8.8 billion dirham) loan from a global banking syndicate, completing the financing for the development of the Wynn Al Marjan Island project.
In October 2024, Wynn Resorts announced that the UAE Commercial Gaming Regulatory Authority (GCGRA) had issued a commercial gaming facility operator license to the entity developing the Wynn Al Marjan Island resort in Ras Al Khaimah.
The US-based casino operator stated that its remaining equity contribution to the Ras Al Khaimah Wynn Al Marjan project is estimated to be $700 million to $775 million (2.57 billion to 2.84 billion dirhams).
The company reported in its Q4 report that it expects contributions of $350 million to $375 million in 2025, and $350 million to $400 million in 2026.
The company's contributions to the project so far have reached $631.7 million (2.31 billion dirhams), including $99 million contributed in Q4 2024.
The company expects to complete the UAE investment cycle by the end of 2026.
"The UAE is the most exciting new market for integrated resort development in decades. The Wynn Al Marjan Island project in the UAE offers unique opportunities in our industry," the company stated.
The Ras Al Khaimah project is expected to add "a significant amount of EIBTDAR (cash flow and management fees)" to our existing base.
