MGM applies for UAE casino licence
MGM Resorts has officially submitted its application for a casino license in the United Arab Emirates (UAE), marking a significant step as the second land-based gaming operator to make a strategic entry into this emerging market.
During a keynote address at the Skift Global Forum in New York on September 19, Chief Executive Bill Hornbuckle revealed MGM’s filing for the UAE casino license in Abu Dhabi. He articulated the multi-layered approval process, stating, “The federal government and the Abu Dhabi government will both need to approve it.” This nuanced approval structure resembles that of various states in the U.S., where regional leaders can influence the final decision. Hornbuckle expressed optimism that the Abu Dhabi authorities would provide further clarity on federal oversight and regulatory guidelines by the end of this year.
MGM Resorts: A Legacy of Engagement in the UAE
Highlighting MGM Resorts’ existing ties with the region, Hornbuckle stated, “We have a long history with the region.” MGM’s partnership with Dubai World for the CityCenter project on the Las Vegas Strip in 2007 exemplifies their commitment to developing high-profile gaming properties. This collaboration resulted in the construction of significant landmarks such as the Aria Casino Resort and Vdara Hotel.
In 2021, MGM made headlines by acquiring Dubai World’s stake in the joint venture for $2.1 billion, subsequently selling the Aria and Vdara real estate to Blackstone for $3.89 billion. Currently, MGM is progressing on a luxury resort project in Dubai, partnering with Hospitality and Leisure to bring to life a development on the picturesque Jumeirah Beach. This venture will include MGM, Bellagio, and Aria brands, featuring a total of 1,500 hotel rooms and several podiums that could potentially accommodate gaming facilities, contingent upon Dubai’s regulatory stance.
While Hornbuckle concedes that “Dubai has not opined on gaming yet,” he remains hopeful about forthcoming decisions from Abu Dhabi regarding the broader federal mandate and oversight applicable to gaming. MGM’s interest in an Abu Dhabi gaming resort reflects the capital’s potential to lead the UAE’s nascent gaming market, a sentiment expressed during Hornbuckle’s discussions at ICE London earlier this year.
Unlocking a Global Audience Through UAE Gaming
It is vital to note that gaming will remain restricted for Emiratis; however, with expatriates constituting 80% to 90% of the UAE’s population, the opportunity for significant market engagement is robust. “It’s a huge travel market,” Hornbuckle articulated, referencing Dubai Airport’s potential to become one of the world’s largest aviation hubs.
This presents an inviting market for tourists from India, other Middle Eastern nations, and China who frequently visit Dubai. “We’re excited by what this market presents, and we aspire to be a significant player in it,” he added.
Wynn Resorts: Poised for Entry into the UAE Gaming Market
While MGM Resorts scrambles to establish its foothold, Wynn Resorts is already ahead in the race, with its property in Ras Al-Khaimah under construction and awaiting a casino license from the General Commercial Gaming Regulatory Authority (GCGRA). Located on Al Marjan Island, Wynn’s resort is progressing towards its planned opening in 2027, although regulatory updates have been limited.
The GCGRA has thus far only issued a license for the UAE Lottery to a new entity, The Game LLC, leaving established local operators like Emirates Draw and Mahzooz disappointed by the current landscape. Wynn CEO Craig Billings expressed confidence following the company’s latest earnings call, stating, “I assume that they will be moving forward to the next step in our licensure,” suggesting ongoing optimism about the momentum in the regulatory process.
As the UAE progresses towards a regulated gaming environment, the developments from industry leaders like MGM and Wynn will be pivotal in shaping the future of this market. The stage is set for a transformative era in Middle Eastern gaming, and both companies are at the forefront of this evolution.
