Attacks by Iran across the Middle East, including the United Arab Emirates (UAE), are cause for alarm for two US-based gaming companies with developments in the region.
Wynn Resorts is building a $5.1 billion casino complex on an island in Ras Al Khaimah. MGM Resorts International is developing a $1.2 billion non-gaming resort, “The Island”, on Jumeirah Beach in Dubai. MGM has also applied for a casino licence for the property, which is expected to debut in 2028.
Iranian forces attacked the region Saturday in response to strikes from the US and Israel. The US State Department has since warned Americans to leave the area “due to severe, escalating safety risks”. It also ordered the mandatory departure of non-emergency personnel and their families from the UAE, Jordan, Bahrain, Iraq, Qatar and Kuwait.
Unexpected turmoil in luxury playground
In a statement on Monday, the UAE Ministry of Foreign Affairs condemned “Iran’s indiscriminate and reckless missile and drone attacks. These unjustified strikes targeted sovereign territory, endangered civilian populations and damaged civilian infrastructure.”
Both Wynn and MGM have their roots in Nevada. In an email to the Nevada Independent, MGM Resorts spokesman Brian Ahern said that company employees “are safe and sheltering in place, per guidance from authorities. We’re in close contact with them and having regular check-ins”.
Wynn Resorts has said it is “closely monitoring the situation” and has “plans in place to secure the safety of our employees should the situation necessitate”.
Former MGM Chairman and CEO Jim Murren, now chairman of the UAE’s General Commercial Gaming Regulatory Authority, has yet to comment on the developing news.
US gaming operators breaking new territory
The legalisation of gaming in the UAE is a part of a larger strategy to grow tourism and fend off competition from Gulf destinations like Saudi Arabia. Wynn Al Marjan Island, slated to open in March 2027, will be first to market in a high-end jurisdiction that courts the rich and uber-rich.
MGM is planning “an entertainment destination of the future, featuring a wide spectrum of activities for all ages”. It will include deluxe hotel brands (MGM Grand, Bellagio, Aria), and eventually, if the operator gets its way, a casino.
Although Emiratis are forbidden to gamble, up to 90% of the local populace is made up of expats. Among them are foreign millionaires and billionaires who appreciate the UAE’s relaxed residency options, business-friendly environment, tropical setting and low crime rate. In addition, expats don’t pay personal income taxes, capital gains taxes or inheritance taxes.
According to SCCG Management, multiple casino resorts and “broad online rollout” in the vicinity could ultimately yield a gaming industry worth $8 billion to $10 billion per year. That outcome would put the UAE “on par with Singapore or post-VIP Macau, provided careful execution”.
The impact of the current crisis and potential long-range threats to regional stability remain unknown. But on Monday, Wynn shares fell $4.75 on the Nasdaq and MGM Resorts declined $1.14 on the NYSE. They closed at $103.44 and $35.72 respectively.
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
Original article: https://igamingbusiness.com/casino/integrated-resorts/wynn-mgm-uae-conflict/
