Dubai ruler Sheikh Mohammed has yet to greenlight a casino at MGM’s $2.5 billion resort on the Jumeirah coast, but MGM CEO Bill Hornbuckle remains confident.
Eight years after UAE developer Wasl and MGM Resorts International announced they would collaborate on a resort in Dubai, the local government has yet to OK a casino at the beachfront property.
In 2017, MGM’s hospitality unit joined with Wasl to begin planning a 10.5-hectare multi-use beachfront complex. In a press release, MGM described it as a “a luxurious sanctuary on magnificent Jumeirah Beach … an entertainment destination of the future, featuring a wide spectrum of activities for all ages.” Like casino gaming – maybe.
Known as the Island, the “Vegas-inspired” integrated resort will mark MGM’s Middle East debut and bring three iconic hotel brands to the UAE: Bellagio, MGM and Aria.
A budding multibillion-dollar market
As recently as February 2024, MGM said the IR would not include a casino. But driven by estimates of a $5 billion to $8 billion market, the US-based operator changed its tune. According to Morgan Stanley, the UAE could rival or surpass Singapore as a global gaming destination. But to date, only Wynn Resorts has been granted a gaming licence for its $5.1 billion Wynn Al Marjan in Ras Al Khaimah.
Both operators are going after the same customer base. Although casinos will be off-limits for Emiratis, between 80% to 90% of the UAE’s population is made up of expats – especially wealthy expats. According to Yahoo Finance, foreign billionaires and millionaires flock to the region for its relaxed residency options, business-friendly environment, luxurious surroundings and low crime rate. Another plus: expats don’t have to pay a personal income tax, capital gains tax or inheritance tax.
The Emirates draw significant visitation from India and China as well as other Middle Eastern countries. “It’s a huge travel market,” MGM CEO Bill Hornbuckle said last year. “Dubai airport is one of the largest airports and I think it will be the biggest in the world. We’re excited by what [the market] presents.”
Wynn should expect competition in the market
Wynn Al Marjan, set to open in early 2027, has an exclusive, renewable 15-year casino licence for Ras Al Khaimah and will enjoy an early monopoly in UAE gaming. But sources told Arabian Gulf Business Insight it’s “unlikely” that Wynn will be the sole operator.
At G2E 2023, Hornbuckle said MGM expects “three or four [casinos] in the Emirates”. With or without a casino, its Island IR is on track to open in the second half of 2028.
It may help MGM’s chances that the board of the UAE’s General Commercial Gaming Regulatory Authority includes MGM alums. Board Chairman Jim Murren is the former chairman and CEO of MGM, and board member William Grounds is an eight-year veteran of the MGM board.
At a recent gaming conference reported by AGBI, Hornbuckle said he expected a decision on the casino licence by now. “We’re waiting for [Sheikh Mohammed] to say, ‘Go ahead’. … I don’t know when we’ll hear, but I do believe this: If [the Island] gets a casino, and I believe it will over time, it’s a massive opportunity.”