Wynn expects UAE casino construction starting in weeks, operator optimistic on Macau

Wynn Resorts Limited, a Nevada, Paradise-based developer& operator of high-end casinos, is optimistic that construction on its ambitious casino resort project on Al-Marjan Island in the United Arab Emirates (UAE) will starts within the next few weeks.

Forecasting a 2027 debut of the casino resort, Wynn CFO Julie Cameron Doe said that he expected construction on his company’s UAE project would start sooner than later, in a matter of few weeks. The seasoned executive made the remarks at the J.P. Morgan Gaming, Lodging, and Restaurant & Leisure Management Access Forum, which took place earlier this week in Las Vegas.

It is worth-mentioning here that Wynn Resorts is an equity investor in the UAE casino resort project. It will also be responsible for operating upcoming gaming property, which will be the first Las Vegas-style gambling-friendly venue in the entire Arab world.

For the project, the American casino operator announced last year that it had signed a partnership deal with local hotel developer RAK Hospitality Holding LLC for the construction of the casino resort. As per available information, the casino resort project on the man-made Al-Marjan Island will cost more than $2 billion.

A few weeks back, some media reports claimed that Wynn Resorts registered trademarks for “Arabian Strip” and “Marjan Strip” for the planned gaming property.

Separately, fresh data confirmed that the American casino operator is among the few concessionaires that are gaining market share in Macau – a Special Administrative Region (SAR) of China. The Chinese SAR is showing strong signs of rebound from a years-long stretch of downturn caused by the Covid-19 pandemic.

At the forum, Doe also told J.P. Morgan analyst Joseph Greff that his company was well-positioned to keep on reaping benefits from the Macau’s resurgence. The operator has two properties in the Chinese SAR, including the Wynn Palace, which is one of the newest venues there. Greff was quick to note that Wynn Macau’s decision to not lay off workers during the pandemic was a smart move as it saved the company from potential labor squeezes.

Commenting on Wynn’s decision to not lay off workers during the pandemic, the analyst said, “As such, while there will be some ramp in operating expenses to correspond with higher demand. WYNN should see a more meaningful EBITDA inflection as revenues step up.”

Nonetheless, the advancement of the UAE casino resort project is really crucial for the operator’s long-term trajectory as it will pave the way for the company’s entry into the potentially lucrative field of gambling in the Gulf state.