Wynn Resorts secures UAE first gambling licence as region eyes tourism and economic growth

Lea Hogg October 5, 2024

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Wynn Resorts secures UAE first gambling licence as region eyes tourism and economic growth

Wynn Resorts announced it has been awarded the first-ever commercial gaming operator’s licence in the United Arab Emirates (UAE), a significant step towards reshaping the country’s economic and tourism landscape. This development comes amidst a wave of liberal reforms designed to secure the UAE’s position as a regional hub, particularly in competition with neighbouring Saudi Arabia.

The Las Vegas-based hospitality giant revealed that the gaming license will facilitate operations at its upcoming luxury resort on Al Marjan Island in Ras Al Khaimah, a joint venture between Wynn Resorts, Marjan, and RAK Hospitality Holding. With construction underway, this resort marks the first casino in the UAE, a nation historically known for its conservative stance on gambling. This shift signals broader intentions from the UAE to diversify its economy, attract international tourism, and remain a key player in the ever-intensifying race for economic dominance within the Gulf Cooperation Council (GCC).

Bold shift in UAE’s conservative policies

The UAE’s decision to issue the gambling licence follows the formation of the General Commercial Gaming Regulatory Authority (GCGRA) just last month. This federal body is tasked with overseeing gambling activities, a once unthinkable concept for the UAE, where gambling has been prohibited for decades due to religious and cultural restrictions. However, the tides have turned. With economic competition escalating across the Gulf—particularly with Saudi Arabia’s ambitions to develop its tourism sector—the UAE appears intent on staying ahead.

“There is no doubt that this is only the first step of the transformation of the gambling industry in the Middle East.”
– Dr JOSEPH F BORG
(Expert in UAE Gaming law)

The establishment of the GCGRA involved the hiring of seasoned veterans from the U.S. gaming industry, signalling the UAE’s desire for expertise and efficiency in this new frontier. Wynn Resorts’ venture, particularly given its status as a reputable player in the global gaming industry, is a strong first step in the UAE’s broader push to liberalise certain sectors to appeal to Western tourists and investors.

While Ras Al Khaimah’s government and its tourism authorities have remained tight-lipped, it is clear that this move aligns with the UAE’s strategy to create diversified attractions beyond Dubai and Abu Dhabi. The country recently enacted a series of liberal legal reforms aimed at solidifying its position as the top destination for trade, tourism, and finance in the region.

Economic competition in the Gulf

The introduction of gambling in the UAE comes against a backdrop of increased economic rivalry in the Gulf. Saudi Arabia, with its Vision 2030 agenda, is looking to wean itself off oil dependency by bolstering its entertainment and tourism sectors. As part of these efforts, Saudi Arabia has been ramping up its offerings, including the launch of entertainment venues, leisure projects, and potential plans to permit more liberal activities that would attract global tourists.

In response, the UAE has accelerated its own initiatives to maintain its edge. For decades, the UAE has been the primary business and tourist hub of the region, thanks to its open economy and favorable policies. However, with Riyadh aggressively courting international investors and tourists, especially through large-scale projects such as NEOM and the Red Sea tourism corridor, the UAE is adapting to remain competitive.

Wynn Resorts’ foray into the UAE is not just a business venture but a symbol of the region’s evolving landscape. By setting up a luxury resort that will include gambling, Wynn is positioning itself at the center of this transformation. Moreover, the UAE’s government sees gambling as a strategic move to tap into the lucrative tourism market, especially for visitors from regions where gambling is a common form of leisure, such as Europe and Asia.

What does this mean for Wynn Resorts?

For Wynn Resorts, this deal is a game-changer. Wynn’s move into the UAE, a region long devoid of legal gambling options, gives the company first-mover advantage in a market that is ripe with opportunity. Al Marjan Island, a man-made archipelago, is already being positioned as a high-end tourism destination, and Wynn’s luxury resort will undoubtedly be a key draw for wealthy tourists looking for exclusive entertainment options.

The resort is expected to feature state-of-the-art amenities and cater to a global clientele, drawing high-rollers from regions where Wynn already has a strong foothold, such as the U.S. and Asia. This expansion comes at a crucial time, as Wynn seeks to diversify its portfolio and tap into new international markets. The move aligns with broader trends in the global gaming industry, where companies are expanding into regions previously resistant to gambling to offset domestic challenges such as market saturation and stricter regulations.

Wynn’s stock saw a 2.30 i percent increase following the announcement, a sign of investor confidence in the company’s bold expansion. However, as the UAE enters uncharted waters with legalised gambling, the firm will need to navigate regulatory and cultural sensitivities carefully. Any misstep could invite scrutiny or backlash, both domestically and abroad.

A gamble that will pay off

The UAE’s decision to grant Wynn Resorts its first gambling license is a historic moment that could reshape the region’s tourism and economic landscape. As the country seeks to diversify away from oil revenues and enhance its global appeal, gambling could become a crucial piece of the puzzle. While the move may face resistance from conservative factions, the broader implications are clear: the UAE is ready to embrace new opportunities to maintain its competitive edge in the region. Wynn, meanwhile, is betting that this untested market will yield significant returns, both for its own growth and for the UAE’s future as a premier tourist destination.