Wynn Resorts Wins the Commercial Gaming License of the UAE

A lucky hand in poker with the General Commercial Gaming Regulatory Authority (GCGRA), the long standing casinos and high-end hotels developer - Wynn Resorts, has acquired the first commercial gaming license in the UAE.

The GCGRA was established in September 2023, and since then it has granted two licenses, the other being to The Game LLC. to a lottery in Abu Dhabi. Wynn’s license was issued on Friday 4th October and was later confirmed by them on Saturday.?

Indeed, to attain this license Wynn had to be eligible for the criteria set by GCGRA which included having a local sponsor, who also needed to qualify by having an existing operational history in the country and is financially capable to be involved in the project. Hence, the joint venture with Marjan and RAK Hospitality Holding.?

The $32 billion project - Wynn Al Marjan Island is located in the emirate of Ras Al Khaimah (RAK), which is UAE northernmost emirate. Even though the emirate is majorly part of the shipbuilding and mining industry - being home to the world’s largest limestone quarry, it has chosen to diversify and invest into tourism.?

In contrast to Dubai, RAK’s tourism is mostly based on its landscapes like UAE’s highest peak of Jebel Jais attracting hikers in the winter. With Wynn’s commercial tourism project, spanning 62 hectares of island with facilities of non-gaming amenities offered as well, including 22 private villas and over 1500 rooms and suites. Overall, placing RAK in the league of Dubai and Abu Dhabi as tourist magnates.

Yet another predominant casino player - MGM, has made their initiation, filing for the license in Abu Dhabi. But is their actual market potential for the casino industry in the UAE? Many spectators wonder if the cultural obstacle rooted in religious beliefs of such gaming being exploitative, can be eliminated, however, it needs to be noted that more than 80% of the population of the UAE is non-emirati who are the target market of the casinos in the UAE.

In fact, Al Marjan Island is literally only 15 minutes away from the nearest airport, giving foreigners convenient access. Therefore, the government has decided to address the needs of the other part of the population. The UAE authorities have created a regulatory framework to provide safe and secure facilities for promoting gaming activities

Notably, GCGRA defines commercial gaming as “Commercial Gaming refers to any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items.”

However, certain businesses are holding onto their Environmental, Social and Governance values, with chairman - Kabir Mulchandani of the existing hotel chain Five, answering the question of venturing into the casinos business, by mentioning how the hotel chain focuses on making money whilst making their customers happy whereas casinos make money when customers leave unhappy.?

But Mulchandani did not refute the possibility by considering partnering with a casino operator instead of operating one themselves to keep up with the market’s competition, which is predicted to be intense. With the market size expected to exceed Singapore’s casino industry by 50 to 70%, being equivalent to Las Vegas’ market size. Furthermore, the casino industry is predicted to generate $10 billion annually, complementary boosting the tourism industry and? eventually accounting for around 1.7% of the country’s GDP.

It is a waiting game, the market could go either way but as Bill Hornbuckle - CEO of MGM puts it “Dubai is Las Vegas on steroids.” This evidently proves the potential of the casino industry in the UAE but what are you placing your bets on?