Wynn Al Marjan: CEO Craig Billings reveals new investment in RAK, GCGRA licence timeline

Image: Supplied by Wynn Resorts

Wynn Resorts, the Las Vegas-based hospitality giant developing the UAE’s first casino on Ras Al Khaimah’s (RAK) Al Marjan Island, provided significant updates during its recent earnings call. 

CEO Craig Billings discussed the rapid progress of the Wynn Al Marjan gaming resort, the company’s new investments in the region, and the anticipated timeline for obtaining a gaming licence from the newly established General Commercial Gaming Regulatory Authority (GCGRA).

Construction milestones and investment growth

Craig Billings revealed that the construction of the Wynn Al Marjan resort is advancing quickly, with the hotel now reaching the 15th floor, standing over 90 metres tall, “which is already the tallest building in the Emirate,” he highlighted. 

In the second quarter, Wynn Resorts contributed $357m in equity to its UAE joint venture, acquiring a 40 per cent stake in 155 acres of Island Three, which includes the land under Wynn Al Marjan.

He explained that the investment is a  strategic move towards having a land bank, similar to what Wynn Resorts has in the US and Macau. “As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the island.” The Wynn Al Marjan is a joint venture between Wynn Resorts, Marjan and RAK Hospitality Holding. 

Billings expressed confidence in the UAE as a burgeoning market for the gaming industry, noting that the demand and EBITDA potential for Wynn Al Marjan continue to rise. The company is also making strides in securing debt financing for the project, with finalisation expected later in 2024.

Read: Inside Wynn Resorts’ plans for the UAE’s first legal casino destination

Licensing and regulatory developments

On the topic of licensing, Billings praised the recent establishment of the GCGRA, the federal regulatory body for gaming in the UAE.

He emphasised that the creation of this authority provides much-needed clarity for investors and financial institutions. “We were delighted with the public announcement of the GCGRA, the federal regulatory body for gaming. The members of that body are some of the luminaries of the industry and very, very experienced regulators.” 

“The establishment of the GCGRA creates incremental clarity for investors and financing sources. It certainly has on the financing — on the bank financing side…And then, you’ll also note that they recently awarded a lottery licence for the UAE, and I think that that hopefully again, gives folks comfort.”

While the exact timeline for obtaining a gaming licence remains uncertain, Billings expressed optimism about the ongoing momentum and progress in the licensing process.

He added, “I assume that they will be moving forward to the next step in our licensing. I don’t have a specific timeline for you, but you can see all the momentum that’s happening there.”

Read: UAE rolls the dice with first lottery licence, unveils new gaming rules

Target demographics

Addressing questions about the resort’s market strategy, Billings highlighted the unique positioning of Wynn Al Marjan as the first integrated resort of its kind in the region. With a robust population within an eight-hour flight, the resort is well-positioned to attract a diverse clientele, from across Asia and Europe.

Billings identified Europe and India as key feeder markets, with India offering substantial growth potential due to its wealth and proximity to the UAE. “Europe is an important market for the UAE in general. But, India is a huge market for this part of the world. There’s a lot of wealth in India, and that’s going be an important market.” 

“There are other parts of Asia that are big markets for the UAE as well, so it’s an exciting project. The catchment area is probably larger than any other project that we have done, maybe akin to Vegas,” he added.

He also noted that the international airlift to Dubai, which is just 55 minutes from the resort, is a significant advantage.

Future expansion

Billings also touched on Wynn Resorts’ broader growth strategy, indicating that while the company has plans for expansion in Las Vegas, the most promising returns are currently in the UAE. “ In terms of relative returns, I think the highest relative return that we can quantify now is absolutely in the UAE on Al Marjan Island.”

The recent acquisition of additional land on Al Marjan Island is seen as a long-term investment, with the potential to replicate successful strategies from other gaming markets like Macau.

Read: Dubai awards biggest island construction contract to house MGM, Bellagio