Skift Take
The entry of major Las Vegas casino companies such as Wynn and MGM into the UAE has been much talked about, but the reality of the country’s gambling industry is likely to be more local, which could favor companies that are already operating in the country.
Josh Corder
Analysts in Las Vegas were at work again this weekend after UAE regulators announced gambling restrictions on Sunday.
The first sentiment we hear is that while industry investors are generally optimistic, the UAE’s casino industry may turn out to be more local than expected.
The first lottery licence was awarded to an Abu Dhabi-based company, and rules for issuing gambling licences require that operators have a “qualified domestic entity” – or QDE – in the UAE, or have a relationship with such an entity, which must have a “substantial” financial and operational track record in the country.
A local focus has been good for companies like Kerzner and Emaar, which owns the Atlantis brand, but Wynn and MGM also already have local partners.
Both Emaar and Atlantis are owner-operators, which gives them an advantage over other operators who want casinos but don’t have owners.
Emaar and Atlantis did not respond to requests for comment.
What about US casino brands?
While the license itself may be awarded to a local company, a Las Vegas industry analyst told Skift that it’s more likely that local developers will approach a U.S. operator like Wynn to run the actual gaming floor.
Wynn Resorts is a co-owner of the upcoming RAK project, along with Marjan and RAK Hospitality Holding.
A Wynn spokesperson told Skift: “We are [General Commercial Gaming Regulatory Authority] We understand the contents of this website and will of course follow the instructions and directions given therein.”
Another potential casino location is MGM Dubai, a long-delayed project that was first unveiled by the emirate’s ruler Sheikh Mohammed in 2017 and features its own QDE.
Wasl is a partner in MGM Dubai, a major hotel owner and developer in the city with close ties to the government. His head of hospitality is Guido de Wilde, a former regional COO for Marriott in the Middle East.
MGM declined Skift’s request for comment.
John Decree, director of equity research at CBRE, told Skift: “We think Wynn’s partnerships with the company at Marjan and RAK are good examples, with local companies maintaining majority ownership. All of this supports the view that the majority of the business will be to domestic companies.”
“However, it is not surprising that a lottery licence has been awarded to a local company. We believe it is highly likely that the winner of a lottery licence will partner with a globally renowned lottery company in some way.”
“GCGRA aspires to be a benchmark regulator and the composition of its board is due to the global and sophisticated experience required to run the industry. Wynn is a multinational company. To truly become the benchmark gaming industry, we need global partnerships.”
“Atlantis is probably in a position to offer a unique gaming experience, but other [local operators]Perhaps it would be more feasible to partner with a well-known operator on the gaming side.”
Atlantis and the UAE Casino
Atlantis has been rumored to allow gambling in Dubai ever since the two resorts opened. The original Atlantis in the Bahamas has a casino, but the property was sold after the Dubai government bought a majority stake in Kerzner.
In May 2023, former Atlantis president Tim Kelly told reporters that Atlantis would be ready to host a casino “if Dubai wants it.”
At the time, Kelly said: “We are being patient. Our focus is on optimizing the resort, but if gambling comes our way, we will be ready for it then. That would make sense, but we need to understand what direction Dubai and the local authorities want to go.”
Market potential
CBRE analysts say UAE casinos could generate as much as $8.5 billion in future revenue, assuming Wynn is one of the few to open across the country.
CBRE’s Decree said in the report: “We believe the UAE represents one of the most attractive opportunities in the global gaming industry given its existing vibrant tourism industry, high propensity for luxury goods and consumer spending, business-friendly operating environment, existing strong transport and accommodation infrastructure, and the virtual absence of gaming industry competitors in the region.”
CBRE believes there will be one casino licence per emirate.
GCGRA Board of Directors
The members of GCGRA’s board of directors have been revealed. They are heavily represented in Nevada, including Chris O’Donnell, former CEO of Emaar Development and a director at Kerzner, the company that operates the Atlantis brand.
The board of directors is led by Chairman Jim Mullen, former President of MGM, along with former Chairman of the Nevada Gaming Control Board Mark Lipparelli, former President and COO of Infinity World Development Corporation, where he managed major projects such as City Centre Holdings, and Vice Chairman O’Donnell, who served as CEO of Emaar Development and has served on various boards of directors for significant gaming investments including Dubai World, City Centre Holdings and Kerzner.