The Future of Casinos in UAE: Which Brands Have the Edge?
29.07.2024 - 23:15
/ skift.com
/ Wynn Resorts
/ Josh Corder
Analysts in Las Vegas were working this weekend after the UAE regulators published its gaming regulations on Sunday.
The first take we’re hearing: Industry investors are generally optimistic, but the UAE’s casino industry may be more local than expected.
The license for the first lottery went to an Abu Dhabi-based company. And the rules for issuing gaming licenses require that operators have a “qualifying domestic entity”, or QDE, in the UAE or have a relationship with one. This QDE must have a “substantial” financial and operational history in the country.
A local focus would be good for companies like Kerzner with its Atlantis brand, and Emaar. However, Wynn and MGM already have local partners as well.
Both Emaar and Atlantis are owner-operators. That’s an advantage over other operators who may want a casino but their owners do not.
Emaar and Atlantis did not respond to a request for comment.
While the licenses themselves may go out to local businesses, an industry analyst in Las Vegas told Skift it is likely local developers will call upon U.S. operators like Wynn to run the physical gaming floors.
Wynn Resorts is part-owner of the upcoming RAK project, with Marjan and RAK Hospitality Holding also on board.
A Wynn spokesperson told Skift, “We are reviewing the public information on the [General Commercial Gaming Regulatory Authority] website and will of course adhere to the instructions and directives it contains.”
Other potential candidates for a casino include MGM, which has a long-delayed project in Dubai. The MGM in Dubai was first unveiled in 2017 by the emirate’s ruler, Sheikh Mohammed, and does have a QDE of its own.
Wasl is the partner for the MGM in Dubai, a major hotel owner and developer in the city with close ties to the government. Wasl’s hospitality head is Guido de Wilde, the former regional COO for Marriott in the Middle East.
MGM declined Skift’s request for comment.
CBRE director of equity research John Decree told Skift: “I look at Wynn and the partnership with them in Marjan and RAK as a good template: It keeps majority ownership with a local entity. It all supports the view that the majority of business will be for domestic companies.”
“The award of the lottery license to a local entity wasn’t surprising though, our thought is that there is a good possibility that lottery license winners might partner with a well-known global lottery company in some capacity.”
“I say that because GCGRA wants to be a benchmark regulator and the composition of their board, they want some global, sophisticated experience to get the industry running. Wynn is the global entity in Marjan. To be truly a benchmark gaming industry, we want to see global partnerships.”
“Atlantis would probably be in a