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Posted on: November 10, 2022, 05:19.
Last updated: 01/10/2022 05:34.
On its third-quarter earnings call late Wednesday, Wynn Resorts (NASDAQ: WYNN) provided analysts and investors with an update on its upcoming opening on the island of Al-Marjan in the United Arab Emirates (UAE). The latest information on integrated resorts.
this project announced earlier this year It is expected to open sometime in 2026. On the conference call, Wynn CEO Craig Billings said the company expects to publicly share plans and renderings of the UAE integrated resort early next year, and confirmed that the casino will be part of the effort. Casino gaming has long been off-limits in the UAE, but when the Al-Marjan joint venture was unveiled in January, it was unclear whether casinos would be allowed.
The casino part, at least for a while, we’ll be running our own, which makes it very exciting, is shaping up to be a bit bigger than Wynn Las Vegas,” Billings responded to Deutsche Bank analyst Carlo Santarelli on a conference call. proposed question.
The Wynn CEO office is “larger” than Wynn Las Vegas, which refers to the square footage or profit and revenue potential of the Emirates integrated resort. Wynn Las Vegas is the operator’s flagship gaming venue in the United States.
UAE critical to Wynn’s diversity efforts
Wynn is working on the project with local hotel developer RAK Hospitality Holding LLC, which is estimated to have a stake in the U.S. company about a third. HKS Architects says It will be the architect of Wynn Properties. The firm has designed The Venetian Macao, the Palais Las Vegas and Atlantis Paradise Island in the Bahamas.
The operator has not publicly stated the price tag for the joint venture, but analysts estimate it to be around $2 billion, predicting that Wynn could generate 20% ROIIt is clear that the UAE program is critical in bringing the required geographic diversification to Wynn’s portfolio.
That’s especially true as the company’s Macau operations remain a drag on overall results. Wynn’s third-quarter results were another example of strong performances in Las Vegas and Boston and disappointing performance in Macau.
Currently, Al-Marjan Island is the only one of the seven emirates that allows wagering, suggesting that Wynn properties could be a quasi-monopoly for some time.
Wynn could open the doors of the UAE
While Wynn may become a player in New York City’s casino license, the UAE remains the focus of its international expansion efforts.
“So we’re very focused on the UAE right now and doing that. It’s a huge, very high return opportunity for us. So that’s really our hallmark – that’s really what we’re designing and developing right now. The point,” Billings added.
Wynn’s progress in the UAE is likely to be closely watched by rivals, as the region is seen as one of the world’s last untapped casino frontiers.
Rival Caesars operates a high-end hotel in Dubai, where MGM Resorts International is building a similar hotel. The resorts haven’t considered gaming yet, but if Dubai changes its attitude, the floodgates for casinos could open.
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