Middle East Gaming Authority Paves Way For 'Arabian Strip' Gambling Zone
12.09.2023 - 15:31
/ skift.com
/ Ras Al-Khaimah
/ Marjan Island
/ Josh Corder
/ Jim Murren
/ Caesars Entertainment
The United Arab Emirates has established the General Commercial Gaming Regulatory Authority, known as the GCGRA, a federal-level entity to regulate and establish “strict guidelines” for the country’s commercial gaming industry. The GCGRA sets the scene for future casinos where Ras Al Khaimah already has the confirmed Wynn resort; a potential “Arabian Strip;” and gaming in other emirates, including Dubai and Abu Dhabi.
The Authority will be led by Kevin Mullally as CEO, with a board of directors being chaired by Jim Murren. Both Mullally and Murren come with a top pedigree in the casino industry.
Mullally was previously with New Jersey’s Gaming Laboratories International, a company that specializes in testing and certifying gaming equipment. Mullally was its VP of government relations and general counsel for a decade. He has also spent 12 years with the Missouri Gaming Commission.
Murren is the former chairman and CEO of MGM Resorts, a role he held from 2008 to 2020. He was also chairman of the American Gaming Association from 2014 to 2017.
UAE state publication WAM said the GCGRA would “create a socially responsible and well-regulated gaming environment” and “facilitate unlocking the economic potential of commercial gaming responsibly.”
According to Bloomberg Intelligence, the UAE could make $6.6 billion in revenue annually from gaming.
Rumors of gambling in the emirates have been around for years. It wasn’t until the announcement of the Wynn Resort in Ras Al Khaimah – approximately a 45-minute drive from Dubai – that the actual possibility of gaming came into view.
In August, Wynn’s CEO Craig Billings spoke about the upcoming resort Island: “We have everything we need to operate gaming in Al Marjan. I expect that we will have our [gaming] license for Ras Al Khaimah actually imminently.”
The behemoth Wynn Resort is scheduled to open in 2027, located on the emirate’s man-made Al Marjan Island. With more than 1,500 rooms, 24 restaurants and a cost of $3.9 billion to build, the resort is so immense for Ras Al Khaimah that its construction may put the local economy in a fiscal deficit.
Fitch Ratings said in a May 2023 report that the resort will “weigh on public finances initially.”
But in the long run, the government-backed property could boost the economy with what is being dubbed by analysts as the “Wynn Effect.”
According to Colliers International, the city will welcome over 3.8 million visitors by 2027 and 5.5 million by 2030.
The gross gaming revenue tax rate is expected to be between 10 and 12% on the Wynn.
Adjusted EBITDA for the resort is expected to reach up to $600 million a year, according to Wynn’s own estimates. By comparison, the long-standing Wynn Las Vegas, took in $801 million adjusted