Eight years after UAE developer Wasl and MGM Resorts International announced plans for a resort in Dubai, government approval for a casino at the beachfront property is still pending.
Back in 2017, MGM’s hospitality division partnered with Wasl to design a 10.5-hectare multiuse complex on Jumeirah Beach. MGM described the project as “a luxurious sanctuary on magnificent Jumeirah Beach … an entertainment destination of the future, offering a wide range of experiences for all ages.” Casino gaming was hinted at as a possible feature.
Called the Island, the Vegas-inspired integrated resort will mark MGM’s first venture in the Middle East and introduce three of its flagship hotel brands to the UAE: Bellagio, MGM, and Aria.
A budding multibillion-dollar market
As recently as February 2024, MGM stated its integrated resort in Dubai would not feature a casino. However, with market projections ranging from $5 billion to $8 billion, the US-based operator has since shifted its position. Analysts at Morgan Stanley suggest the UAE could rival or even surpass Singapore as a leading global gaming hub. So far, Wynn Resorts is the only operator to secure a gaming license for its $5.1 billion Wynn Al Marjan project in Ras Al Khaimah.
MGM and Wynn are targeting the same clientele. While Emiratis will not be allowed to gamble, expats — who make up 80% to 90% of the UAE’s population — represent a lucrative customer base, particularly wealthy foreign residents. According to Yahoo Finance, many billionaires and millionaires are drawn to the Emirates for its attractive residency programs, pro-business policies, luxury lifestyle, and low crime. Another incentive: there is no personal income tax, capital gains tax, or inheritance tax for expats.
The UAE also benefits from strong tourism demand, particularly from India, China, and neighboring Middle Eastern countries. “It’s a huge travel market,” MGM CEO Bill Hornbuckle said last year. “Dubai airport is one of the largest airports in the world, and I think it will become the biggest. We’re excited about the opportunities this market offers.”
Wynn should expect competition in the market
Wynn Al Marjan, scheduled to open in early 2027, holds an exclusive, renewable 15-year casino license for Ras Al Khaimah, giving it a first-mover advantage in UAE gaming. However, sources told Arabian Gulf Business Insight that it is “unlikely” Wynn will remain the only operator.
Speaking at G2E 2023, MGM CEO Bill Hornbuckle predicted the UAE could eventually host “three or four [casinos].” Regardless of licensing, MGM’s Island resort is expected to open in the second half of 2028.
MGM may also benefit from connections within the UAE’s General Commercial Gaming Regulatory Authority. Its chairman, Jim Murren, is MGM’s former chairman and CEO, while board member William Grounds previously served eight years on MGM’s board.
At a recent gaming conference reported by AGBI, Hornbuckle noted he had anticipated a decision on licensing by now. “We’re waiting for [Sheikh Mohammed] to say, ‘Go ahead’ … I don’t know when we’ll hear, but I believe this: If [the Island] gets a casino — and I think it will eventually — it’s a massive opportunity.”
