Wynn Al Marjan Island is expected to deliver a major boost to Wynn Resorts, contributing over $350 million in free cash flow (FCF) once fully stabilized, according to CBRE.
This projection follows the recent announcement that Wynn Resorts has been granted a gaming license by the General Commercial Gaming Regulatory Authority (GCGRA) of the United Arab Emirates (UAE). The integrated resort, which represents a $4 billion investment in Ras Al Khaimah, signifies a major milestone for the company and the broader gaming landscape in the UAE.
In a recent report from CBRE, the issuance of the official gaming license is highlighted as a crucial step likely to attract greater interest from equity investors. “So far, investors have given no credit to Wynn Resorts for Wynn Al Marjan Island, which we estimate could generate approximately $920 million of EBITDA,” the report stated.
Given Wynn’s 40 percent ownership interest and management contract in Wynn Al Marjan Island, this integrated resort is expected to play a vital role in enhancing Wynn Resorts‘ overall financial performance.
While the announcement of Wynn’s license was relatively low-key, state media confirmed the approval, aligning with expectations of a more discreet licensing approach in the region.
The timing of Wynn’s investor day this week further suggests that the company was either confident about securing the license or had already obtained it prior to the presentation.
The investment bank predicts that investors can anticipate that Wynn Resorts will share updated projections for Wynn Al Marjan Island during this event, possibly including details regarding project financing and timelines as construction rapidly progresses toward a projected opening in the first quarter of 2027.
Despite the excitement surrounding the UAE gaming market, some challenges remain, particularly regarding the accessibility of new laws and regulations.
While the GCGRA is authorized by federal decree to regulate and supervise all forms of commercial gaming in the UAE, the federal decree itself has not been made widely public. This lack of transparency has been a concern for public equity investors; however, the official license granted to Wynn is expected to alleviate some of those apprehensions.
CBRE also flags that cultural sensitivities regarding gaming in the region may delay broader legislative announcements that decriminalize gaming. The UAE has been cautious and thoughtful in its approach to integrating gaming within its framework.