The United Arab Emirates (UAE) on the Persian Gulf are reportedly considering a plan where each of the seven emirates would be granted one casino license, Bloomberg Intelligence reported November 2.
This would allow all to get a share of gambling tourism while keeping gambling under a tight rein, in a country where currently it’s a criminal offense to gamble, based on Shariah law.
Although all seven emirates would have the option to use such a license, some might not. That may include Dubai, where, Bloomberg said, senior government officials are putting all thoughts of casinos on the back burner. Bloomberg’s sources said the government considers tourism to already be growing dramatically. However, the same officials are also mulling introducing a poker series to the city state.
That hasn’t discouraged MGM Resorts, which is developing a hotel with 1,500 rooms in the emirate and is lobbying very publicly to be allowed to add a casino. In October MGM CEO and President Bill Hornbuckle told an audience at G2E that it was unlikely that the Israeli-Hamas war would affect their plans.
“Irrespective of what’s happened in the past couple of days which is extremely tragic, we’re very progressive and excited by what could happen there. We think there’ll be three or four casinos in the emirates,” he said at the show. “It’s up to each ruler to decide what they want to do and where they want to do it.”
Hornbuckle added, “We’re positive. I’d love to be in Dubai with an operating company that has a casino in it, but one step and one day at a time.”
In September the UAE announced that it was creating the General Commercial Gaming Regulatory Authority (GCGRA) to regulate gaming. It appointed Jim Murren, former MGM Resorts CEO, as chairman. His authority will have the job of creating a regulatory architecture for commercial gaming and a national lottery.
The UAE has not announced a proposed tax rate for commercial gaming yet, so estimates of possible revenues would be more guessing than calculating.
Wynn Resorts earlier announced that it is developing a $3.9 billion integrated resort on Al Marjan Island in Ras Al Khaimah. It will be the first IR in the UAE when it opens in 2027, as it is scheduled to do. It will include a deluxe hotel with more than 1,000 rooms, retail shopping, convention facilities, a spa, dining and entertainment.
In August Wynn CEO Craig Billings told investors that the company expects to get its license for Ras Al Khaimah “soon.”
The emirate of Abu Dhabi is also studying hosting a casino, with Yas Island reportedly leading the sites in contention, according to Bloomberg. Yas Island already hosts Ferrari World, the Warner Bros. theme parks and Yas Marina Formula One Circuit. The emirate is looking closely at a parcel near the city’s port, sources who wished not to be identified told Bloomberg.
Bloomberg quotes some sources who estimate that the emirates could produce more revenue than Singapore, in the neighborhood of $6.6 billion. However the individual expenditure per tourist might be less in the emirates compared to Singapore and Macau.
