Wynn Resorts’ Bet on UAE Casinos Begins to Pay Off

As global tourism picks up after the pandemic, the middle east is to take a lead role in the hospitality and entertainment industry. Wynn Resorts’ bet on the first casino close to Dubai breaks new grounds for the United Arab Emirates (UAE), making headlines. Economically, this is a daring business maneuver. Yet to be more than that may be to herald an apparent shift in the mindset of the region when it comes to tourism and entertainment, given its longheld norms and rules. We look at how Wynn’s gamble to build a resort is playing out, and what information that reveals about the region.

Wynn Resorts Investment in UAE

It was an investment by Wynn Resorts, the luxury uptown casino, to invest in the UAE. The region’s tourism and leisure industry has been marked by a milestone with their casino, which sits near Dubai in the Ras Al Khaimah area. It is the first ever for the UAE, a new era for a country that has historically held a conservative view on gambling.

The resort is an integrated complex with $3.9 billion investment in the play of the land at Mount Airy, North Carolina; a combination of five star hotels, restaurants, retail outlets and world class entertainment venues. The development is meant to appeal to a variety of lucrative clientele, ranging from high roller gamblers to leisure folks seeking high end entertainment choices. Wynn’s bet seems to be paying off as the demand for casino tourism in the UAE outpaces expectations, according to Bloomberg.

Read more: Wynn Resorts Sets the Stage for UAE’s First Casino

This move is apparent economically. Developed as part of its long term vision for diversification away from oil revenues, the UAE has been increasingly looking to expand its non oil sectors especially tourism and hospitality. The tourism sector alone accounts for over 12 per cent of GDP, with hospitality and entertainment investment continuing to rise at record speed.

The casino is already proving to be promising returns, according to a recent statement from Ras Al Khaimah’s Tourism Development Authority. The new attraction will provide an annual economic boost of roughly $1.5 billion for Wynn Resorts and the country as a whole, the authority estimates.

The opening of a casino tells a tale of the shifting cultural narrative of the UAE. This historic country with a mind-set proclivity for the conservative lifestyle is making a strategic move to attract more international tourists by becoming a leisure destination. The UAE is motivated to embrace new markets while sitting tight for social harmony by carefully regulating the gaming sector.

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However, Wynn Resorts’ UAE venture is happening during a region of growing shift. Other neighboring countries like Saudi Arabia have been stretching the bounds when it comes to tourism norms to not only attract a broader group of international tourists but also a broader group of international tourist from a more diverse group. Saudi Arabia, for example, includes boosting the entertainment sector in its Vision 2030 aims, and Qatar has just put shoes on after the World Cup, focusing on luxury tourism.

There is also a perfect backdrop of robust tourism infrastructure, and being already known as the place to go for leisure in the region, Dubai will be a competitive backdrop for the Wynn’s new resort initiative. But Ras Al Khaimah is going niche, focusing on high end entertainment with loosened regulations to meet international standards for what constitutes leisure time, including gambling.

The economic benefits are obvious, but while experts debate how much the introduction of gambling will impact the UAE socially and culturally. Adding gaming options, according to analysts, including Jason Ader, a high profile name in hospitality sector investments, would soar visitor numbers by the hundreds or even tens of thousands, netting hotels, restaurants and other service sectors a considerable return on their investment.

Read more: Emirates Airline Bans Pagers and Walkie-Talkies

Local cultural experts have also raised concerns, however. Religious grounds have always made gambling a an embattled issue in Middle Eastern societies. Consequently, Wynn’s entry in the UAE gaming market must concurrently fulfill the demands of a new gaming culture with native values. Regulation is highlighted as key to making the casino principally a tourist attraction and thus the casino not creating social discord.

As reported by local news agencies, there has been cautiously optimistic public reception. Residents are keen about the economic stakes as Ras Al Khaimah has traditionally been more of a less powerful hub than Dubai or Abu Dhabi when it comes to tourism. These should lead to employment prospects as well as ancillary services which should attract local interest.

The introduction of gaming facilities will have multiple revenue streams for the UAE from an economic perspective. But gaming won’t only attract tourists looking to play, the integrated resort model employed by Wynn guarantees full spending in other sectors of tourism like dining, entertainment and shopping.

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This is already starting to ripple out into the hospitality and real estate sectors, as they start to notice increasing activity. Ras Al Khaimah property prices have risen slightly, according to experts, thanks to investor interest sparked by the new resort. And the resort will pull visiting conferences and events too — increasing Ras Al Khaimah’s credentials as an international business tourism venue.

Early signs are encouraging, but Wynn Resorts braces for obstacles that could undermine its UAE venture. But regulatory frameworks are strict and there is only so much money to go around for the gambling industry. Under cultural context the UAE government may maintain tight control over operation in this.

Read more: Resorts World One to Begin Sailing from Dubai on November 1

I also don’t expect that potential political, and probably religious, pushbacks won’t have to be faced, in a region where social reforms are quite sensitive. Wynn has to get through these turmoils while keeping a watchful eye on compliance and trying to temper any blowback.

The other thing is, there’s competition. The more countries in the Middle East loosen up tourism restrictions, the more Wynn will have to compete with developments in Saudi Arabia, Qatar and possibly Oman. For the UAE offering, differentiating the possession by leveraging in the existence brand of Wynn, along with superior visitor encounters, will end up being essential.

Read more: Abu Dhabi and Dubai: Top Livable Cities in the Middle East and Africa

Actionable Takeaways for Stakeholders

• For Tourists: In Ras Al Khaimah, world class entertainment is coming to you in an amazing setting and with the safety and accessibility offered by the UAE.
• For Investors: With increased liberalization in tourism policies, the hospitality, retail, and ancillary investing avenues are opening up in the UAE.
• For Local Businesses: The market for services targeting the international tourist is on the rise from luxury transportation to things like curated cultural experiences and there is an emerging market of opportunity for local startup and entrepreneur.
• For Policy Makers: The gaming sector remains flexible but robust enough to support the broader social UAE framework by not undermining, rather supporting it.

Wynn Resorts’ UAE gamble is emblematic of the UAE’s bigger gambles to diversify and open up. The resort near Dubai has already proved a success — they are on their way to creating a market niche for the UAE in the global casino tourism market. The UAE has struck a balance between allowing the open market to evolve with a need for cultural sensitivities to inform how it presents itself, writing a new chapter in the Middle East’s constantly changing tourism landscape.

The eyes of the world are upon Ras Al Khaimah right now not just as a tourist deal, but as a reference point on cultural adaptation and economic ambition. Whether these experiments turn out sustainable results or not, it is a fact that UAE is eager to take the risk to ensure future as an international destination that is, sandwiched between the arts and entertainment sector.

Read more: Dubai Launches the World’s Greenest Highway: A Vision for Sustainable Urban Development

References

• Bloomberg. Wynn’s Bet on Resort Near Dubai Starts to Pay Off. Bloomberg, 2024-10-10.
• Ras Al Khaimah Tourism Development Authority. Statement on Economic Impact of New Casino. Ras Al Khaimah Tourism Development Authority, 2024.
• Ader, Jason. Expert Opinion on Gaming and Hospitality Investment. Hospitality Insights, 2024.
• UAE Government. Tourism Statistics and Economic Contribution. UAE National Bureau of Statistics, 2024.
• Saudi Vision 2030. Entertainment Sector Development Plans. Saudi Government, 2024.
• Local News Agency. Public Reception of Wynn Resorts in Ras Al Khaimah. Emirates Today, 2024.