Las Vegas-based gaming operator Wynn Resorts has increased the budget for its casino project in the UAE – Wynn Al Marjan Island to $5.1 billion.
The new budget is $1.2 billion higher than the previous estimate, as outlined in a presentation to investors and analysts on Tuesday.
The budget includes land, fees, and capitalized interest – around $4.55 billion would come from direct construction costs – and would be largely funded by $2.4 billion of debt, with Wynn adding that debt raising is already oversubscribed amid “strong demand from local and international investors.”
Wynn Al Marjan Island, scheduled to open in 2027, represents a significant financial and operational undertaking for the company. Located in Ras Al Khaimah, the fourth largest of the UAE’s seven emirates, the project will span most of Marjan Island’s third section.
Last Friday, Wynn Resorts made a key announcement confirming that it had secured the UAE’s first commercial gaming license, clearing the way for legal gaming activities at the resort.
The update was shared during the company’s Analyst & Investor Update Meeting, where a 99-slide presentation outlined the latest development plans.
Wynn Al Marjan Island is located about 50 minutes from Dubai International Airport, offering convenient access and placing the resort within an eight-hour flight for a large portion of the global population.
The resort will feature 1,542 rooms, with the gaming area occupying nearly 4 percent of the total space.
Wynn Resorts is targeting high-net-worth customers for this project. According to the company’s presentation, 9.7 million high-net-worth individuals live in the UAE, accounting for nearly 20 percent of the world’s total millionaires. This group is seen as a key customer base for the resort.
Wynn expects a significant portion of its gross gaming revenues to come from international VIP customers, projecting that 37 percent of its revenue will come from “international VVIPs,” a category defined as ultra-high-net-worth individuals.
Another 29 percent of revenues are expected from other international travelers, while 34 percent will come from the domestic market. The nine million non-Emiratis living in the UAE represent an important segment that Wynn believes could benefit from the new gaming offering.
Although federal gaming laws have yet to be finalized in the UAE, current regulations prohibit the use of national symbols and traditional Emirati dress in gaming advertisements, suggesting that marketing efforts will likely focus on expatriates and foreign visitors.
Core markets
Wynn Resorts sees its core markets as Europe, India, the Gulf Cooperation Council (GCC) countries, and the UAE itself. Wynn Resorts CEO Craig Billings previously has noted that India, in particular, represents a critical market due to its large population and considerable wealth. Indian travelers, along with those from Europe and the GCC, are expected to be key sources of business for Wynn Al Marjan Island.
The company also expects to maintain a monopoly on gaming in Ras Al Khaimah for the foreseeable future. According to Wynn’s projections, only one casino license will be granted per emirate, which would give them exclusive control of the gaming market in RAK for several years.
Over time, the landscape may evolve into a duopoly or oligopoly, with a limited number of competitors entering the UAE market, potentially in Dubai or Abu Dhabi.
Wynn Resorts assumes the UAE gaming market will be worth approximately $3 to $5 billion. Meanwhile, the operator predicts it will hold a 33 percent market share in gross gaming revenue across the country, even as other integrated resorts open.
