Wynn Resorts reveals renderings, name of UAE resort

Wynn Resorts Ltd. on Thursday unveiled renderings and the name of its planned casino resort in the United Arab Emirates, which one analyst described as “one of the most exciting growth prospects in the gaming industry globally.”

The resort, called Wynn Al Marjan Island, will be located on 115 acres on the Al Marjan Island, made up of four islands, in the emirate of Ras Al Khaimah.

Wynn will have a 40 percent stake in the $3.9 billion project that will also be the company’s first beachfront property. It is working with local partners Marjan LLC and RAK Hospitality Holding LLC on the development.

The 1,500-unit resort, featuring rooms, suites and villas, initially will be the first UAE property with a casino as Ras Al Khaimah plans to legalize gambling. It’s unclear whether other emirates will offer gaming.

The architecture will be a departure from Wynn’s traditional sweeping bronze-colored design used at Wynn Las Vegas, Encore, Wynn Macau and Encore Boston Harbor, and it will have a 1,000-foot tower.

“We have spent the past year meticulously programming and concepting Wynn Al Marjan Island, carefully considering its unique location,” Craig Billings, CEO of Wynn Resorts, said in a release. “I am incredibly proud of our design and development team’s ability to impart our legacy of rich, thoughtful design into a sun-soaked beachside resort that will delight customers, new and old. We look forward to opening Wynn Al Marjan Island in early 2027.”

Gaming industry analyst John DeCree of Las Vegas-based CBRE Equity Research said the growth prospects of Wynn Al Marjan Island are “up there with U.S. sports betting, Japan and downstate New York.”

Sports wagering has been one of the gaming industry’s biggest stories since 2018, when the Professional and Amateur Sports Protection Act of 1992 was struck down by the U.S. Supreme Court. Since then, 37 states and the District of Columbia have approved betting on sports.

In Japan, MGM Resorts International recently received approval to build an integrated resort with a casino in Osaka.

And competition is now underway for three companies to secure licenses for new casinos in downstate New York.

DeCree, who has a “buy” rating on Wynn stock, said he expects Wynn Al Marjan Island to generate cash flow of between $450 million and $600 million annually, comparing favorably with Encore Boston Harbor in 2022 and Wynn Palace in Macao in 2019 on a per-room basis.

“However, given the many advantages of the location in the UAE, including demographics, wealth, tourism and the fact that Wynn Al Marjan might be the only game in town, we believe the long-term earnings potential could be even greater,” DeCree said in a Thursday note to investors.

The resort is expected to house a total 5.6 million square feet with 120,000 square feet dedicated to retail, 100,000 square feet of convention and meeting space and 224,000 square feet for the casino. The casino is expected to comprise about 4 percent of the property’s gross floor area, more than double that of Wynn Las Vegas.

Construction kicking off

Construction work on the foundation began onsite earlier this year.

In addition to the luxury rooms, casino and convention space, the resort is expected to have 24 dining and lounge experiences, spa and wellness services, a high-end shopping esplanade, a state-of-the-art events center, a theater and other amenities.

Designed for longer visits and day trips from neighboring emirates, the resort will also offer entertainment experiences including nightly state-of-the-art laser and light shows.

Caesars Entertainment Inc. already opened Caesars Palace Dubai in the UAE’s most populous city of Dubai, and MGM Resorts International is developing a resort that will include an MGM Grand, a Bellagio-branded hotel and MGM Signature villas.

The three properties are miles apart and in different emirates, which are similar to states.

Shares of Wynn Resorts, traded on the Nasdaq, closed up 77 cents a share, 0.7 percent, to $110.22 on Thursday on average volume.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.