Wynn Resorts boosts UAE casino budget to $5.1B, up $1.2B, for its Wynn Al Marjan Island project in Ras Al Khaimah, targeting the growing gaming market.
Las Vegas-based gaming operator Wynn Resorts has announced an increased budget for its ambitious casino project in the United Arab Emirates. The budget for Wynn Al Marjan Island has risen to $5.1 billion, marking a $1.2 billion increase from earlier estimates. This financial boost highlights the company’s confidence in the project, which aims to tap into the lucrative gaming market in Ras Al Khaimah.
According to the Arabian Gulf Business Insight, Wynn estimates that the gaming revenue from the new resort in Ras Al Khaimah could range between $1 billion and $1.66 billion. This projection was revealed during an investor presentation, underscoring the potential profitability of the venture. The budget encompasses costs related to land acquisition, fees, and capitalized interest, with approximately $4.55 billion earmarked for direct construction expenses.
To finance this major undertaking, Wynn Resorts intends to utilize $2.4 billion in debt. It plans to contribute $1.1 billion in equity, with $900 million of that still left to spend. The company noted that demand for this debt has been robust, indicating strong interest from both local and international investors. This enthusiasm for financing signals confidence in the project’s future.
The company purchased 70 additional acres of land on Al Marjan Island in August.
Wynn Al Marjan Island is scheduled to “pre-open” in the first quarter of 2027. The resort will occupy a significant portion of Marjan Island, which is located about 50 minutes from Dubai International Airport. This prime location offers convenient access for travelers, positioning the resort within an eight-hour flight radius for a substantial segment of the global population.
The resort will feature a total of 1,542 rooms, with the gaming area occupying nearly 4 percent of the overall space. This strategic design aligns with Wynn’s target demographic of high-net-worth individuals. According to the company’s estimates, the UAE is home to approximately 9.7 million high-net-worth individuals, making up nearly 20 percent of the world’s total millionaires. Wynn plans to cater to this affluent market, anticipating that a significant portion of its gaming revenues will come from international VIP customers.
The company projects that about 37 percent of its gross gaming revenues will be derived from what it defines as “international VVIPs,” which refers to ultra-high-net-worth individuals. Another 29 percent of the revenue is expected to come from other international travelers, while the remaining 34 percent will be sourced from the domestic market. Notably, the nine million non-Emiratis residing in the UAE represent an important demographic for Wynn’s new gaming offerings.
Despite the promising outlook, the regulatory landscape for gaming in the UAE is still evolving. While Wynn Resorts recently secured the UAE’s first commercial gaming license, federal gaming laws have yet to be finalized. Current regulations impose restrictions on using national symbols and traditional Emirati dress in gaming advertisements. This suggests that marketing efforts will likely focus on expatriates and foreign visitors rather than the local population.
Read related article: Wynn Resorts Gets First Commercial Gaming License From UAE
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