Dubai reconsiders casino plans while Abu Dhabi and Ras al Khaimah forge ahead

The Ohio Casino Control Commission (OCCC) is contemplating a major change to its licensing rules that could have far-reaching implications for the state’s burgeoning sports betting industry. The proposed amendment would grant the r the discretion to extend the one-year launch deadline for licensees on a case-by-case basis.

This potential change comes in response to the challenges faced by local and retail entities in transitioning from concept to launch within the existing 12-month timeframe. Phantom Fireworks, a Type B operator licensed for brick-and-mortar operations only, is among those finding the current deadline restrictive. Despite not having a definitive location for its sportsbook, the company is making progress, albeit slower than anticipated due to administrative issues.

The OCCC’s consideration of this rule change underscores its commitment to fostering a thriving and competitive sports betting market in Ohio. The state regulator initiated legal sports betting on 1 January 2022, with a deadline for licensees to go live by 31 December 2022. This deadline was subsequently extended by six months, and a second extension is now under consideration.

Several other Type B licensees, including the Pro Football Hall of Fame, Muirfield Village Golf Club, the SPIRE Institute, and Lori’s Roadhouse, have yet to commence wagering operations. Phantom Fireworks, owner of the United State Hockey League Youngstown Phantoms, is also navigating administrative hurdles as it works towards launch.

In a recent interview with the Business Journal Daily, Michael Podolsky, deputy general counsel for Phantom Fireworks, revealed that the company is collaborating with consultants to finalize financial projections. He expressed optimism about the company’s progress but acknowledged that meeting the current deadline would be unfeasible without an extension.

Meanwhile, in Arkansas, the Racing Commission has opened a 30-day application window for a fourth casino licence. The window, which opens on 13 May, is specifically for those interested in establishing a casino in Pope County. The commission has scheduled a meeting for 12 June to close the application window.

This development follows the state’s approval of legal sports betting in November 2018, which also greenlit casinos at two existing racetracks – Oak Lawn and Southlawn – and two future casinos in Jefferson and Pope counties. The Saracen Casino, located in Jefferson County, is one of the beneficiaries of this legislation.

These regulatory developments in Ohio and Arkansas highlight the dynamic and evolving landscape of the . As regulators and operators navigate these changes, the focus remains on creating a balanced and sustainable market that benefits all stakeholders.

Kangwon Land Inc., the exclusive operator of the only casino resort in has released its unaudited financial results for the first quarter of 2024. Despite a year-on-year decline of 8.5 percent in net profit, the company has shown resilience with a sequential increase of 26.0 percent from the final quarter of 2023, bringing the net profit to KRW92.9 billion (US$68.1 million).

The company’s gaming sales, primarily driven by mass-market table play and slot machines, have shown a promising increase. The first quarter of 2024 saw gaming sales rise to KRW316.2 billion, a 3.3 percent increase year-on-year and a 10.7 percent increase sequentially.of the company’s overall sales, which totaled KRW368.4 billion.

In addition to its gaming operations, Kangwon Land Inc. also reported non-gaming sales from its hotel, condominium, and skiing businesses. These non-gaming sales reached KRW52.2 billion, remaining steady from the previous year but showing a substantial 31 percent increase from the previous quarter.

The company’s operating profit for the first quarter was KRW75.9 billion, marking an 8.9 percent increase year-on-year and a remarkable 95.8 percent increase sequentially. This robust performance demonstrates the company’s ability to navigate the challenging business environment and deliver solid results.

Looking ahead, Kangwon Land Inc. has earmarked KRW116.8 billion for capital expenditure in 2024, aimed at enhancing resort attractions and other operational aspects. Of this budget, KRW81.9 billion is allocated for operating investment, including casino floor expansion, resort facility renovation and improvements, and gaming equipment. An additional KRW26.6 billion is set aside for the development of a water treatment facility and employee dormitories.

In a recent announcement, Kangwon Land Inc. released a KRW2.5-trillion new phase for its property, which will triple the size of its casino space by 2032. The expansion plan includes a significant increase in gaming space, a hotel expansion, a new villa with a swimming pool, and other facilities. This ambitious plan underscores the company’s commitment to growth and its strategic vision for the future.

Kangwon Land Inc.'s first-quarter performance in 2024 reflects a resilient and robust business model. With strategic investments and expansion plans in place, the company is well-positioned to navigate the future and continue delivering value to its stakeholders.

Wynn Resorts, in collaboration with Marjan and RAK Hospitality Holding, has just released renderings of the forthcoming Wynn Al Marjan Island, a prestigious luxury resort in Ras Al Khaimah, UAE, set to transform the hospitality landscape of the MENA region.

Wynn Design and Development, a team of over 90 skilled architects and designers, is spearheading the creation of Wynn Al Marjan Island. As the first beachfront resort by Wynn Resorts, spanning nearly 62 hectares into the Arabian Gulf, this project aims to become the very first integrated gaming resort in the MENA region. The company's in-house design team has an unparalleled track record in shaping iconic gaming resorts worldwide.

Wynn Al Marjan Island promises an unparalleled experience, featuring 1,542 lavish rooms and suites, including 22 exclusive Villa Estates overlooking the newly designed marina. Guests can indulge in a lavish poolscape covering 3.6 hectares, complemented by a diverse range of dining establishments, a world-class theater showcasing bespoke productions, a luxury shopping esplanade, a five-star spa, and a sophisticated meetings and events center crafted for various occasions.

Since commencing construction in early 2023 under the leadership of UAE-based ALEC Engineering and Contracting, the UAE has reached a height of approximately 40 metres. The towering resort, soaring over 300 metres, is expected to reach completion by the fourth quarter of 2025, with a public opening slated for early 2027. Positioned amidst the rapidly growing tourism hub of Ras Al Khaimah, the location provides easy access to major airports, offering visitors an idyllic retreat on Al Marjan Island's pristine beaches and waterfront, surrounded by upscale hotels and residential developments.

The project has the potential to not only 's hospitality landscape but also position Ras al Khaimah as a formidable contender for the limelight, potentially diverting the attention that so far has been largely reserved for Abu Dhabi and Dubai.

The Gaming Innovation Group (GiG) has announced its plan to divide its Platform & Sportsbook and Media business units by Q3 2024. This strategic move is aimed at optimizing growth opportunities and ensuring both businesses can effectively leverage their operating models.

of €36.2 million in Q1 2024, a 28 percent increase year-on-year. The GiG Media business recorded €28 million in revenue during the quarter, up 51.9 percent from the same period the previous year. This growth is attributed to the fruitful acquisition of AskGamblers in February 2023 and the successful integration of KaFe Rocks in December 2023.

However, the Platform & Sportsbook division saw a decline in revenue by 17 percent to €8.3 million. The company attributes this to the accounting method for its GiG Enterprise Solution revenue, with most of it recorded in 2023. Excluding this solution, the business unit would have seen a year-on-year revenue growth of 5 percent.

The group’s adjusted EBITDA stood at €12.6m, up 8 percent from the previous year, despite a drop in EBITDA margin from 41.1 percent in Q1 2023 to 34.8 percent. The EBITDA growth varied between divisions, with GiG Media reporting a 69 percent growth to €13.5 million, while the Platform & Sportsbook division delivered a €0.8m EBITDA loss. The company attributes this loss to the fall in its GiG Enterprise Solution revenue and a significant rise in sales and marketing costs.

Despite these challenges, the company reported a €3.6m profit from continuing operations for the quarter. However, the market responded negatively to the financial report, with GiG’s share price falling 7.9 percent to SEK30.35 per share in early trading, before recovering to SEK31.35.

GiG is operationally ready for the planned split of its Media and Platform & Sportsbook divisions. The Media business, which will comprise the company’s affiliate and lead generation services, will be led by Jonas Warrer as CEO post-split, while Richard Carter will run the independent Platform & Sportsbook entity.

This strategic initiative, first announced as part of a February 2023 review, is geared towards expanding market reach and maximizing revenue opportunities. As GiG chairman Petter Nylander stated, the company remains steadfast in its commitment to creating sustainable long-term growth and value for its shareholders.

Gaming Innovation Group Inc. (GIGSEK.ST) is trading at SEK31.00 (-4.47%).