According to analysts at JPMorgan, the new casino resort being developed by Wynn Resorts in the United Arab Emirates (UAE) is poised for success due to the combination of factors such as the location, affluent customer base, and favorable regulatory environment. The resort, situated on Al-Marjan Island in Ras Al Khaimah, will be the first legal casino hotel in the Arab world, making it a unique and attractive destination for gamblers and tourists alike.
Joseph Greff, leading the team of analysts at JPMorgan, highlighted the strategic advantages of the Wynn Al Marjan Island project in a report covered by Casino.org. The proximity to Dubai International Airport, just a short 50-minute drive away, makes the resort easily accessible to travelers from around the globe. With nearly 96% of the world’s population within an eight-hour flight, the casino hotel is expected to draw in a significant portion of the affluent demographic that Dubai is renowned for attracting.
Set to open in early 2027, the Wynn Al Marjan Island resort is positioned to play a crucial role in the emerging UAE casino market. Drawing comparisons to Singapore’s successful casino industry, experts foresee the Wynn project enjoying a period of monopoly in the UAE market due to its status as the first legal casino in the country.
Wynn Resorts has high expectations for the project, forecasting annual earnings of $1.38 billion to $1.88 billion, with anticipated adjusted EBITDA ranging from $390 million to $570 million. The resort is also projected to generate free cash flow between $170 million and $350 million, with a return on invested capital estimated at 9.8% to 15.7%. These optimistic figures are supported by the favorable tax system in the UAE, where the government will impose a tax rate of 10% to 12% on gross gaming revenue, significantly lower than the 40% rate in Macau.
One of the key advantages for Wynn is the 15-year casino license obtained for the UAE project, surpassing the standard 10-year permits commonly issued in other casino markets. With limited competition expected in the initial years, Wynn’s venture in Ras Al Khaimah is well-positioned to dominate the UAE gaming landscape, benefiting from the scarcity of gaming licenses expected to be granted in the country.
