• Wynn UAE resort set to open in 2027
• US projects currently on hold
• Stock rating upgraded to ‘buy’

Wynn Resorts has announced that its $5 billion integrated resort in the UAE is on track for completion, even as the Las Vegas-based casino operator pauses several other projects in the US due to escalating construction costs associated with newly imposed tariffs.

Although gambling is currently illegal under federal law in the UAE, the impressive 47-storey resort on Al Marjan Island in Ras Al Khaimah is slated to debut in 2027, and is anticipated to be the first location in the country to host a legal casino.

“A majority of materials have been procured already,” stated CEO Craig Billings during the company’s first-quarter earnings call. He noted that early purchasing has insulated the project from the inflationary challenges that have affected other sectors of the company.

In sharp contrast, Wynn has temporarily halted various projects in the United States, blaming economic unpredictability and rising costs stemming from President Trump’s tariff announcement made in April.

In the recent quarter, Wynn allocated $51 million to the UAE project, thereby raising its total investment to $683 million. The company holds a 40 percent interest in the joint venture, partnering with Marjan and RAK Hospitality Holdings.

BofA Securities upgraded Wynn’s stock to a ‘buy’ rating and increased its price target to $100, expressing optimism about the UAE’s expansion efforts. Analysts believe that the project will start to impact investor sentiment and valuation within the next 12 to 18 months.

The resort aims to serve three key customer groups: tourists visiting Ras Al Khaimah, residents of Dubai, and international luxury travelers.

In October 2024, Wynn announced it had received the UAE’s first commercial gaming license from the General Commercial Gaming Regulatory Authority. This license secures a 15-year exclusivity for casino operations in Ras Al Khaimah, as confirmed in an investor update last year.

Wynn anticipates that annual gross gaming revenue from the Ras Al Khaimah resort could range from $1 billion to $1.7 billion, projecting the UAE market potential to be between $3 billion and $5 billion.

Despite recording a decline in year-on-year revenue for the first quarter, Wynn reported that its core operations remain steady.

“While we are definitely in a stronger position than some, given our more resilient affluent customer demographic, there is still a degree of uncertainty,” Billings remarked. “However, our operations in Las Vegas and Macau have so far been performing quite robustly.”