Narrowing down the competition
Traditionally conservative regions around the globe are now starting to show an interest in gambling. One of these untapped markets is the United Arab Emirates (UAE), with momentum building around a push for legal casinos in the jurisdiction. Now, Ras Al Khaimah and Abu Dhabi are battling it out to be the first emirate to develop a casino in the UAE after Dubai reportedly pulled out of the race.
Abu Dhabi is currently looking at potential sites for such a property, with Bloomberg reporting that two of the main options are Yas Island, already home to many entertainment offerings, and a site close to the port.
Wynn Resorts has started developing an integrated resort on a man-made island
Ras Al Khaimah, only about 45 minutes by car to the north of Dubai, already has an area chosen for a casino. Wynn Resorts has started developing an integrated resort on a man-made island that will cost almost $4bn and be up and running in 2027. The US-based casino company expects to get a license in the near future.
Many parties showing interest
Dubai is the biggest hub for tourism in the UAE and is constantly looking at new ways in which it can attract people. With significant numbers of visitors coming to the city already, senior government officials believe that a casino is not necessary at this point in time. That stance could change in the future.
Other casino companies are reportedly showing an interest in getting into the UAE casino market. MGM Resorts International CEO Bill Hornbuckle was speaking last month at an industry trade show when he expressed his belief that the UAE will eventually have three or four casinos.
a resort in Dubai that will initially serve as a non-gaming facility
MGM is already in the process of developing a resort in Dubai that will initially serve as a non-gaming facility. It does have an area that will be convertible into a gaming area if it gets the green light to do so at some point in the future.
Caesars Entertainment developed a resort in Dubai that opened in 2018. It decided to sell its stake in the project just a week after the announcement of the creation of the national gambling regulator.
A potential new framework
The chairman of the new UAE gambling regulator is former MGM Resorts CEO Jim Murren. This regulator will develop a framework for casinos and a national lottery.
Under the current proposal, the central government could grant a single casino license to each of the seven emirates, if the jurisdiction wants to open up to gambling. This restriction would help keep the market from getting out of hand as casinos would not be popping up everywhere.
Current estimates are that a UAE casino market could eventually be bigger than Singapore’s sector, potentially reaching $6.6bn in annual gaming revenue.