Wynn Resorts Limited is attracting fresh attention from investors, with Morgan Stanley Research highlighting significant growth potential from the company’s major developments in the United Arab Emirates (UAE) and Macau.
While Wynn’s Las Vegas operations continue to play a key role, the expansion in the Middle East and the strategic adjustments in Macau stand out as the primary drivers for Wynn’s future growth.
Morgan Stanley’s latest analysis underscores the potential of Wynn’s new resort project in the UAE—Wynn Al Marjan Island—a venture expected to be a game-changer for the company. Scheduled to open in early 2027, the development marks Wynn’s entry into the Middle Eastern market and is set to become the first integrated resort of its kind in the region. The UAE, particularly cities like Dubai and Abu Dhabi, has seen a rapid rise in luxury tourism, with a growing appetite for exclusive, high-end experiences. Wynn’s expertise in catering to affluent travelers positions the company well to capitalize on this trend.
Bill Hornbuckle, CEO, MGM Resorts
According to MS Research, the UAE project could generate $1.8 billion in revenue and $500 million in EBITDA by its third year of operation. This level of profitability would rival some of Wynn’s most successful properties in Las Vegas and Macau, establishing the UAE resort as a critical piece of the company’s global portfolio. What makes this venture even more promising is the limited competition in the market, giving Wynn a significant first-mover advantage. As the first luxury integrated resort in the UAE, Wynn is poised to dominate a largely untapped market with substantial potential for growth.
This UAE project is not just about adding another property to Wynn’s portfolio; it represents a strategic move to diversify geographically while capturing new revenue streams. With the UAE’s reputation as a global hub for luxury tourism and commerce, Wynn’s investment in the region could provide a strong buffer against potential downturns in its more established markets like Las Vegas and Macau. As the Middle Eastern market continues to grow, the UAE resort could become a cornerstone of Wynn’s long-term expansion strategy.
In addition to the promising UAE project, Wynn Resorts continues to demonstrate resilience and adaptability in its Macau operations. Despite challenges such as China’s economic uncertainty and ongoing geopolitical tensions, Macau remains a critical market for Wynn. Historically, Macau has been one of Wynn’s most important revenue generators, and while the environment has shifted, the company has been quick to adjust its strategy to meet new market dynamics.
Wynn’s shift from relying on VIP gaming customers to focusing on the premium mass market segment has proven effective in maintaining its market share in Macau. This transition aligns with broader regulatory trends in China, where authorities have pushed for more controlled and transparent gaming operations. By focusing on premium mass players, Wynn has positioned itself to navigate regulatory changes while continuing to benefit from Macau’s status as a premier gaming destination in Asia.
Morgan Stanley’s research points to the continued strength of Macau as a contributor to Wynn’s overall earnings. Even with the challenges posed by the pandemic and stricter regulations, Macau’s recovery appears to be underway, and Wynn is well-positioned to capture this growth. The company’s ability to adapt to a changing environment and refocus on segments that are less vulnerable to regulatory pressures speaks to its resilience and strategic foresight.
Macau also remains a key driver for Wynn’s capital returns strategy, particularly in terms of dividends. With its Macau properties stabilizing, Morgan Stanley expects Wynn to significantly increase its dividend payouts from this market, making it a focal point for shareholder value creation. Wynn’s renewed emphasis on returning capital to shareholders, through both dividends and share buybacks, is another reason why the company has become increasingly attractive to investors.
While the focus of Morgan Stanley’s analysis is on the UAE and Macau, Wynn’s strategic positioning in these markets also provides a hedge against potential risks. Geopolitical tensions, economic fluctuations in China, or even a downturn in Las Vegas could present challenges for Wynn. However, the company’s diversified portfolio – spanning high-growth regions like the UAE and established markets like Macau – helps mitigate these risks.
