Wynn Resorts Ltd will have an exclusive, renewable 15-year casino licence for Ras Al Khaimah in the United Arab Emirates (UAE), and could generate a minimum of US$1.33 billion annually in gross gaming revenue (GGR), according to an investor update issued on Tuesday by the company.
The local gaming licence for the Wynn Al Marjan Island complex (pictured in an artist’s rendering) was confirmed in a Friday statement from the group. Wynn Resorts is the parent of Macau casino operator Wynn Macau Ltd.
Tuesday’s presentation clarified the Ras Al Khaimah scheme’s gaming space would be 225,000 square feet (20,903 sq metres) which would be 4 percent of gross floor area. The document also said there would be only “one land-based licence” per emirate.
The UAE is composed of seven emirates. They are: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.
Wynn Resorts anticipates two other casino resorts will be licensed in the UAE. MGM Resorts International said recently it had applied for a casino permit in Abu Dhabi.
The inflation-adjusted cost of the Wynn Al Marjan Island, including land, capitalised interest and fees, is put at US$5.1 billion.
The presentation said “pre-opening” would be first-quarter 2027, and reiterated it expected the topping out of the resort tower during the fourth quarter of 2025.
Tuesday’s update clarified that project costs-only, would amount to US$4.6 billion. Previously, a US$3.9-billion price tag had been mentioned by the casino firm.
Wynn Resorts is a 40 percent equity investor in the scheme, with local partners providing the remaining 60 percent. Local entities are RAK Hospitality Holding LLC and Al Marjan Island LLC. Aside from being an equity investor, Wynn Resorts will also receive management and licence fees similar to typical luxury hotel agreements, according to previous commentary from the company’s management.
The update said the Wynn group’s equity contribution is expected to be US$1.1 billion – excluding Al Marjan Island land bank equity and related infrastructure purchased in second-quarter 2024 and potential future developments on the island – with US$900 million left to spend.
The group’s base case financial modelling puts annual net revenue from the scheme at just under US$1.38 billion; and adjusted property “earnings before interest, taxation, amortisation and management excess” (EBITDAM) of at least US$500 million.
A best-case scenario would be for just under US$1.88 billion annually in net revenue, and US$800 million in adjusted property EBITDAM.
The Wynn group’s base-case share of free cash flow, plus management and licence fees, is US$180 million annually, with a best case of US$370 million.
The scheme will have 1,542 hotel rooms, including 297 suites, six townhouses and 22 villas; 16 restaurants; six bars and lounges; 130,000 sq. feet of retail space; and 145,000 sq. feet of capacity for meetings, incentives, conferences and exhibitions (MICE) activities.
