Wynn UAE Casino Project Gaining Momentum

Wynn Resorts’ (NASDAQ: WYNN) plan to build the first casino resort in the United Arab Emirates (UAE) is well-known — construction is already underway — but investors have yet to fully factor the value of this project into the stock price.

They may want to reconsider that stance, as there are growing signs of momentum behind the Wynn Al Marjan Island integrated resort in Ras Al Khaimah. For instance, Wynn’s management is hosting an investor day in Las Vegas next month. In a recent report to clients, JPMorgan analyst Joseph Greff mentioned this could be a positive indicator, suggesting that UAE regulators might be close to officially approving casino gaming.

“The fact that management is willing to hold a three-hour investor meeting likely signals that regulatory approval and licensing may be imminent,” wrote Greff. “We don’t see this as a de-risking event, but rather one where equity investors can start recognizing the currently discounted value associated with the project.”

The General Commercial Gaming Regulatory Authority (GCGRA), the UAE’s first gaming regulatory body, was established last year. In July, the authority issued a lottery license to a company based in Abu Dhabi, raising hopes that a casino license for Wynn might soon follow. Some investors are awaiting that approval because the financial prospects of Wynn Al Marjan Island look much more promising with the inclusion of a casino.

Further Positive Signals For Wynn’s UAE Casino

The potential for Wynn to receive a gaming license in the UAE in the near future could be a game-changer, as competitors are eager to test their chances in the region. Wynn’s property is set to open in early 2027, meaning it could enjoy a temporary monopoly if it secures the casino permit, being ahead of any other potential competition.

Wynn Al Marjan Island is on track to become the first regulated casino resort in the Arab world — a significant point for both analysts and investors. This underscores the importance of public relations and perception, particularly among local residents, as gambling is viewed unfavorably in many neighboring countries. However, data suggests attitudes in the UAE may be shifting.

“In September 2023, the UAE established the General Commercial Gaming Regulatory Authority (GCGRA), signaling the country’s intent to regulate and potentially legalize certain forms of gambling. Since that announcement, public interest has surged, with online searches for gambling-related terms increasing by 54.38%,” according to Dubai Casinos.

The research group also noted that each major news event related to gambling in the UAE generates an average 12.54% rise in related internet searches by UAE residents.

Rising Interest In UAE Casinos

Although Wynn Al Marjan Island is designed as a tourist destination, with gaming occupying only a small percentage of its overall space, it’s clear there is growing local interest in land-based casinos.

“This is evident in the consistent search volume for terms like ‘Casino in Dubai’ and ‘Ras Al Khaimah Casino,’ indicating public curiosity about the potential for physical gaming venues in these areas,” added Dubai Casinos.

Regulators have yet to confirm if there will be restrictions on local residents visiting UAE gaming venues, but imposing such limitations might be challenging given the considerable oil wealth in the emirates.