Leisure & Hospitality

Wynn says UAE casino on track despite delays to US projects

May 9, 2025, 10:53 AM

Wynn says its businesses in Macau are 'holding up quite well'

Wynn UAE resort due in 2027
US projects on pause
Stock upgraded to ‘buy’

Wynn Resorts has said its $5 billion integrated resort in the UAE is progressing on schedule, even as the Las Vegas casino operator delays hundreds of millions of dollars in other projects due to rising construction costs linked to new Trump tariffs.`

While gambling remains prohibited under UAE federal law, the 47-storey resort on Al Marjan Island in the small emirate of Ras Al Khaimah remains on track for a 2027 opening and is expected to feature the country’s first legal casino when it opens.

“Most of the materials have already been purchased,” CEO Craig Billings told analysts on the company’s first-quarter earnings call. He said that early procurement helped to shield the project from inflationary pressures hitting other parts of the business.

By contrast, Wynn has paused several US projects citing economic uncertainty and higher costs triggered by President Donald Trump’s tariff announcement in April.

Wynn invested $51 million into the UAE project during the quarter, bringing its total contribution to $683 million. The company owns a 40 percent stake in the joint venture, alongside partners Marjan and RAK Hospitality Holdings.

BofA Securities on Wednesday upgraded Wynn’s stock to “buy” and raised its price target to $100, citing optimism over the UAE expansion. Analysts expect the project to begin influencing investor expectations and valuation over the next 12 to 18 months.

The resort is designed to cater to three customer segments: inbound tourists to Ras Al Khaimah, Dubai residents and international luxury travelers.

In October 2024 Wynn said it secured the UAE’s first commercial gaming licence from the General Commercial Gaming Regulatory Authority. This licence grants Wynn an exclusive 15-year term for casino operations in Ras Al Khaimah, the company confirmed in an investor update last year.

Wynn projects annual gross gaming revenue between $1 billion and $1.7 billion from its Ras Al Khaimah resort, based on a UAE market potential of $3 billion to $5 billion.

Despite a year-on-year revenue decline in the first quarter, Wynn said core operations remain stable.

“While we are certainly better insulated than some given our more resilient affluent customer base, there’s obviously uncertainty out there,” Billings said. “So far, however, our businesses in Vegas and Macau are holding up quite well.”