ASIAN ROUNDUP
like but despite the uncertainty, global operators are circling. Las Vegas Sands Corporation and MGM Resorts have both publicly expressed interest. Rob Goldstein, Sands CEO has called Thailand “a very, very exciting market in a lot of levels” and pointing to the size of population, accessibility and strong tourist market. MGM’s Bill Hornbuckle has also been bullish. Despite the potential, supporters of Thai casinos face an uphill battle, no matter the position of the prime minister – or her father. There is however a realistic prospect that Thailand could open its first integrated resort before MGM’s Japan development in Osaka. Five thousand kilometers west of Thailand is another market that looks set to emerge with a bang in the next 12-24 months. The United Arab Emirates has taken decisive steps to move ahead with casino legislation, setting up the General Commercial Gaming Regulatory Authority (GCGRA). The body is led by chair Jim Murren, former MGM Resorts chief executive, and chief executive Kevin Mullally whose experience includes a spell leading the Missouri Gaming Commission and acting as legal counsel at GLI. The UAE will no doubt coordinate the location of integrated resorts, but the front runners are Ras Al Khaimah and Abu Dhabi. RAK’s plan will see Wynn Resorts pour over US$5bn into the Al Marjan Island resort which is set to open in early 2024. This 24-floor, 1500-room complex will have just four percent of its space dedicated to casino gaming but will generate gross gaming revenue in the range of US$1bn to US $1.67bn, according to company forecasts. Wynn, which secured the UAE’s first gaming license in October ’24, estimates the total UAE market will be worth between US$3bn and US$5bn and it expects to pay a blended tax rate of 10 – 12 percent of GGR. It has not confirmed rates for specific products, but they are likely to be set
at 25 percent of GGR for slots and 18 percent for tables with an eight percent rate for VIP players. Rivals MGM has also been active in the region and is already in the process of developing a resort which will carry its Bellagio brand in Dubai. The planned property will not open with casino space but there are several sections which could be reproposed should the largest Emirate decide to go down the route of licensing gambling. MGM recently applied for a gaming license in Abu Dhabi. The UAE’s Emirati Muslims may be seen at the tables in London but gambling at home is likely to be a step too far. Neither is it expected that Chinese gamblers will make up a significant component of the customer base. However, casinos in the region are not likely to struggle for patrons. Wynn’s investor presentations set out three player segments with ‘international VVIP’ at its core. Comprising ultra high-net-worth international customers, Wynn expects this group will contribute 37 percent of GGR. Around 75 percent of the world’s population is within an eight-hour flight of Wynn Al-Marjan Island, the company said. It predicts that international tourism will make up 29 percent of the $1.33bn GGR projected total. The final 34 percent will come from domestic visitors. The UAE is an untapped market for integrated resorts, with a potential player base of nine million non- Emirati residents. And it’s a “magnet” for high- net-worth individuals Wynn said. More than 6,700 millionaires are expected to relocate to the UAE in 2024 alone. Looking towards 2025, it is clear that there are both political, economic and demographic variables which will impact growth in the sector. Developments in the UAE would seem to widen the total addressable market, whereas plans elsewhere could simply displace GGR from one market to another. Either way, it will always be interesting.
PHIL SAVAGE Head of Publications and European Affairs, IMGL For information contact
+44 7778 635836 phil@IMGL.org
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IMGL MAGAZINE | DECEMBER 2024
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