Get ready for some dazzling news from the desert, because it looks like Wynn Resorts (WYNN) is set to enjoy an unexpectedly long head start in the United Arab Emirates’ thrilling new gaming scene! According to insights from CBRE, Wynn’s anticipated casino monopoly in the UAE could last much longer than initially thought, giving them an enviable lead in what’s shaping up to be a monumental market.
What’s the Scoop?
The magnificent Wynn Al Marjan Island, a colossal $3.9 billion integrated resort located in Ras Al Khaimah, is sprinting towards its early 2027 grand opening. With construction rapidly advancing – Wynn CEO Craig Billings recently boasted 42 of 70 hotel floors completed and a new floor wrapping up every week – this property is set to be a game-changer.
The key reason for Wynn’s extended solo run? It appears the General Commercial Gaming Regulatory Authority (GCGRA), the UAE’s inaugural gaming regulator, isn’t rushing to issue a second casino license anytime soon. This slowdown in approving additional integrated resorts means Wynn could have an unchallenged reign for at least a couple of years, if not longer!
Wringing Value from a Head Start
This extended monopoly is like finding extra chips at the start of a poker game! CEO Craig Billings has already hinted at the UAE potentially growing into a colossal $5 billion to $8 billion annual gaming market, a figure that could rival the mighty Las Vegas Strip’s $6 billion. Imagine that – the UAE potentially challenging Singapore for the third spot in global casino markets! While reaching the top end might require more than just Wynn’s property, analysts agree the low to middle range is certainly within reach, allowing Wynn to capture significant value.
While the gaming world speculates on who might eventually grab the second license (MGM Resorts International is a popular guess, with casino space reserved at a non-gaming resort in Dubai), one thing is clear: Wynn is poised to maximize its early advantage. As CBRE points out, the benefit of this longer head start could be “more valuable longer-term.”
Wynn’s Smart Moves
It’s not just about building a magnificent resort, Wynn is also showing confidence in its own stock. With investor Tilman Fertitta boosting his stake and Wynn itself continuing substantial share buybacks, the company is signaling that its current share price doesn’t yet fully reflect the massive potential of the Wynn Al Marjan Island opportunity. Expect those buybacks to continue until the market truly gives Wynn credit for its exciting growth prospects in the UAE!
In short, Wynn isn’t just building a casino; they’re laying claim to a significant piece of the future of global gaming, with a unique head start that promises both excitement and substantial returns!