In anticipation of the future Wynn Al Marjan Island project in the United Arab Emirates, Wynn Resorts is increasing its financial commitment. This choice comes after the business recently acquired the first commercial gaming license in the area, which was a big step toward its growth goals.
At first, Wynn intended to invest $3.9 billion in Ras Al Khaimah’s opulent integrated resort. Nevertheless, a 31% increase in the budget has already been made, bringing the total to $5.1 billion. This revised amount was revealed on October 8 during a presentation to investors, not long after Wynn was granted the General Commercial Gaming Regulatory Authority (GCGRA) of the United Arab Emirates its first commercial gaming license.
Wynn clarified that the revised budget encompasses various fees and interest. The construction cost alone is estimated at around $4.55 billion, with approximately $2.4 billion of that amount being financed through debt. If timelines are met, Wynn Al Marjan Island is slated to open its doors in 2027.
Wynn’s Optimistic Outlook on the UAE Market
Wynn Resorts is optimistic about the potential of the UAE’s gaming market. According to estimates from Morgan Stanley, the local market could yield between $3 billion and $5 billion in annual gross gaming revenue (GGR). The actual revenue will depend on the number of resorts permitted to operate and whether local residents can participate in gambling activities. While MGM officials suggest the UAE may permit up to four resorts, Wynn anticipates that three will be allowed.
Wynn Al Marjan Island is expected to produce GGR of about $1.4 billion per year. The resort also hopes to draw a broad spectrum of visitors, particularly considering its close proximity to Ras Al Khaimah International Airport and the UAE’s standing as a luxury travel destination.
Al Marjan Island LLC, RAK Hospitality Holding LLC, and Wynn Resorts worked together to create Wynn Al Marjan. Additionally, the company has added to its land holdings in the emirate and is looking into ways to increase its presence in the local economy.
This new business endeavor is consistent with Wynn’s overarching plan to seek high-value clients in a number of foreign regions. Wynn showed its desire to expand internationally earlier this year when it indicated interest in Thailand as it contemplates the possible legalization of integrated resorts.
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