MGM Resorts Eyes Strategic Expansion in the UAE
MGM Resorts has officially applied for a casino license in the United Arab Emirates (UAE), marking a significant move as the first major operator to pursue such an opportunity in the burgeoning Middle Eastern market. This bold step was announced by Bill Hornbuckle, CEO of MGM Resorts, during the Skift Global Forum 2024, as the company seeks to expand its global footprint into the UAE, specifically in Abu Dhabi.
MGM’s Strategic Move to Abu Dhabi
MGM’s focus on Abu Dhabi is a calculated effort to enter the region’s gaming market. Hornbuckle confirmed during the forum that the company submitted its application to the Abu Dhabi government, with the federal authorities overseeing the process. “Yes, we have [applied]. We’ve done it in Abu Dhabi,” Hornbuckle stated, explaining that both federal and local approvals are required for the license.
The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) only began accepting casino license applications in July, creating a fresh opportunity that MGM was quick to seize. Despite having no operating hotels in the region, MGM’s current focus is firmly on securing the casino license, with Hornbuckle hopeful that the company will gain more clarity on the federal mandate by the end of the year.
Competitive Landscape: Wynn Resorts vs. MGM
MGM’s application follows Wynn Resorts’ high-profile development in the UAE. Wynn is investing $3.9 billion into a luxury resort in Ras Al Khaimah, expected to open in 2027, although Wynn’s casino license status remains unconfirmed. This intensifies the competition between the two casino giants, with both companies seeking to capitalize on the growing demand for entertainment in the region.
MGM has a strong foundation in the UAE, having established ties through past collaborations such as the CityCenter project in Las Vegas, which was a joint venture with Dubai World. In addition to its casino ambitions, MGM is developing a luxury resort in Dubai, set to feature brands like Bellagio and Aria, further cementing its commitment to the region.
Potential Market and Regulatory Outlook
The UAE represents a unique market opportunity for casino operators, particularly due to its large expatriate population. With expatriates making up between 80% and 90% of the UAE’s residents, the country is seen as an attractive destination for global tourists, particularly from India, China, and other Middle Eastern nations. As Hornbuckle noted, “It’s a huge travel market… Dubai airport is one of the largest airports, and I think it will be the biggest in the world.”
The broader shift towards legalized gaming in the UAE reflects changing attitudes in the region. The creation of the GCGRA signals a gradual loosening of restrictions, mirroring efforts in other Gulf states like Saudi Arabia and Qatar to diversify their tourism sectors. However, the UAE has not yet permitted its Emirati citizens to participate in casino gaming, a policy expected to continue.
MGM is optimistic about its chances, leveraging its long-standing regional relationships and proven track record in global gaming. “We’re excited by what it presents and we hope to be there,” Hornbuckle expressed.
Future Prospects: A Regional Gaming Hub?
If MGM succeeds in its bid for the casino license, it could become a key player in establishing Abu Dhabi as a premier destination for international gaming. As the UAE continues to evolve its tourism and entertainment sectors, the entrance of world-renowned operators like MGM and Wynn could transform the region into a competitive hub for the global casino industry.
Wynn Resorts has set its sights on an ambitious global expansion, with new projects in the United Arab Emirates, potential developments in Las Vegas, and exploratory ventures in Thailand. CEO Craig Billings recently shared these strategic plans during an earnings call, highlighting the company’s growth trajectory and investment strategies.
Bold Move into the UAE: Wynn Al Marjan Project
Wynn Resorts is making significant headway with its $3.9 billion Wynn Al Marjan project in the UAE. Located on Al Marjan Island, this integrated resort is expected to open its doors in 2027. The company has acquired 155 acres of land, with over 70 acres designated for future development opportunities.
Craig Billings expressed strong confidence in the UAE market, noting the rapid progress of construction, which has now reached the 15th floor. He highlighted the strategic importance of the newly established General Commercial Gaming Regulatory Authority (GCGRA), which has already issued the UAE’s first lottery license. This regulatory clarity is seen as a pivotal step in fostering a robust gaming environment in the region.
Evaluating Expansion in Las Vegas and New York
Back in the United States, Wynn Resorts is carefully considering how to best utilize its existing land in Las Vegas. Billings emphasized that expansion is inevitable, aiming to enhance their offerings in this iconic entertainment hub. In New York, however, potential projects are still under evaluation, dependent on future tax rates and regulatory conditions.
Exploring Opportunities in Thailand
Wynn Resorts is also closely monitoring the developments in Thailand, where the government is progressing towards introducing regulated casino gaming. Billings noted the legislative momentum and expressed optimism about potential investments, pending a comprehensive understanding of the regulatory framework. Thailand’s well-established tourism infrastructure and service culture make it an attractive market for Wynn’s integrated resort developments.
Strategic Diversification and Global Leadership
Wynn Resorts’ strategic geographical diversification and investment in emerging markets underscore its commitment to maintaining a leading position in the global gaming and hospitality industry. With ongoing projects and new markets on the horizon, Wynn aims to continue setting industry standards and delivering exceptional experiences to its clientele worldwide.
As Wynn Resorts navigates these new ventures, its focus on innovation and excellence remains unwavering, promising exciting developments in the years to come.
