Casino and hospitality giant MGM Resorts is giving up on its plans for a Dubai casino, at least for now. Despite that, the company is bullish on seeing its resort megaproject through, with or without a casino.

For reference, MGM’s plan for The Island is to construct a three-hotel complex, combining an Aria, an MGM and a Bellagio hotel into a huge 1,400-room property. The company has been working on this for several years now, although progress has been slow. It wasn’t until November 2023 that local project developer Wasl issued a $1.2 billion contract to China to build the resort.

The Island will cost some $2.5 billion to construct and will become a premier hospitality destination.

Dubai Did Not Legalize Gaming as MGM Had Hoped

The reason why MGM Resorts is giving up on its casino project, at least for now, is the United Arab Emirates’ cultural opposition to gambling as a whole. While many believe that at least some emirates will eventually mellow down and permit some forms of real-money games, Dubai remains reluctant to greenlight casino gaming.

Bill Hornbuckle, MGM’s president and chief executive officer, had teased in 2023 that there are some possibilities of gaming getting legalized in Dubai or Abu Dhabi. As a result, he said that The Island will have 200,000 square feet of space set aside for a luxurious casino. In another conference call, he suggested that MGM might operate as many as four casinos in the Emirates in the near future.

However, Hornbuckle’s prediction did not come true and Dubai did not permit gaming. Despite that, the CEO is still optimistic about The Island’s future.

Obviously, we have Dubai. We have our project there, which is an amazing project. It’s going to be over a $2.5 billion project without a casino in it.

Bill Hornbuckle, president & CEO, MGM Resorts

The future of gaming in the UAE remains murky but MGM Resorts is likely to try Abu Dhabi next. The company has been eyeing Yas Island for a while, considering a potential property there.

While Hornbuckle believes that Abu Dhabi or Dubai would be the first to allow gaming, competitor Wynn Resorts has placed its bets behind Ras Al Khaimah.

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China State Construction Engineering Corporation (CSCEC), based in Beijing, has clinched a significant contract worth AED4.4 billion ($1.2 billion) to construct The Island project, marking the largest deal since 2017. 

The Island Project Welcomes MGM, Bellagio, and Aria to Its Horizon

The Island project, situated on a 10.5-hectare island off the coast of Umm Suqeim, is poised to become a luxurious destination, featuring renowned hotel brands such as MGM, Bellagio, and Aria. The prospect of these high-profile brands entering Dubai has sparked speculation about potential gambling facilities if the UAE decides to legalize it, reported MEP Middle East.

The development is expected to offer a diverse range of amenities, including 1,400 hotel rooms and apartments, along with retail, dining, and entertainment options. German firm Buro Kling Architectural Engineering Consultants is playing a pivotal role as the main and structural consultant, alongside local firm APCC overseeing the earthworks.

The timing of this milestone coincides with a surge in optimism for Dubai’s project market, evident in the recent approval of the $4.9 billion Blue Line extension in the Dubai Metro network. The Island project, strategically located near the Jumeirah Beach Hotel and Marsa al-Arab, adds a new dimension to Dubai’s ever-evolving skyline and urban landscape.

CSCEC’s triumph in securing The Island project follows its earlier successes in Dubai, including the AED886 million ($241 million) main works contract for Damac Properties’ 71-storey Cavalli Tower and the W-Residences project awarded by luxury real estate developer DarGlobal.

With a brand value of $31.9 billion in 2022, as reported in the Brand Finance Engineering and Construction 50 2023 report, CSCEC stands as the world’s largest transnational conglomerate, known for its expertise in civil and industrial engineering, real estate development, and home building.

Wynn Resorts Redefines Luxury in Dubai with $3.90 Billion Casino Resort

MGM is not the only gambling company trying to set foot in Dubai. Wynn Resorts advances with its groundbreaking $3.90 billion integrated casino resort on the artificial Al Marjan Island in Ras Al Khaimah, UAE, scheduled for an early 2027 launch. 

Partnering with local entities Marjan and RAK Hospitality Holding, Wynn ensures compliance with stringent UAE regulations. The project, led by ALEC Engineering and Contracting, has progressed smoothly since March, reflecting Wynn’s commitment to the region’s surging demand for luxury gaming and resorts. 

Recent concept images revealed a sleek hotel tower reminiscent of the Las Vegas Strip, featuring 1,500 hotel rooms, expansive gaming areas, a spa, entertainment facilities, and a luxurious shopping center.

The $3.90 billion investment signifies Wynn’s substantial commitment to the UAE’s hospitality sector, aiming to meet the escalating demand for luxury destinations in the Middle East.

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Dubai, the most ostentatious of the seven emirates in the United Arab Emirates (UAE), has postponed the approval of casino resorts, potentially dealing a temporary blow to MGM Resorts International’s regional ambitions. In collaboration with Wasl Hospitality and Leisure, MGM opened a branded hotel in Dubai in 2021 and has been closely monitoring the possibility of establishing a gaming regulatory framework.

Dubai Remains Attractive to Investors

MGM Resorts International has long expressed an interest in Dubai, hoping that UAE’s number one tourist destination would finalize its plans to legalize casino resorts. The company is collaborating with Wasl Asset Management Group to create a high-profile venue with a flexible space of 150,000 square feet, awaiting the nod from the UAE leadership to introduce gaming into the mix.

While the UAE has traditionally prohibited gambling under Sharia law, recent indications suggest a paradigm shift. The UAE announced the formation of its first gaming regulatory agency, the General Commercial Gaming Regulatory Authority, signaling its changing attitudes. However, a new Bloomberg report stated that Dubai had opted to delay the approval of casino gaming.

Such news presents a temporary setback for MGM, which has invested significantly in its planned venue. However, industry insiders agree that regulated gambling will come sooner rather than later, justifying MGM’s decision to proceed with its project. The planned venue’s flexibility means the hospitality giant can swiftly adapt to an eventual green light and launch its gambling content.

Other Emirates Have Launched Preparations

While Dubai’s casino future remains uncertain, Abu Dhabi and Ras Al Khaimah have gained prominence as strong contenders in their own right. Abu Dhabi is exploring the idea of opening a casino, with potential sites including Yas Island, known for its attractions like the Ferrari World, Warner Bros. theme parks, and the Yas Marina Formula One Circuit. 

Ras Al Khaimah, the capital city of its eponymous emirate, boasts popular tourist attractions and aims to bolster its international appeal. Wynn Resorts has already started developing its Wynn Al Marjan Island project, which can become the first UAE property with casino gaming. Scheduled for an early 2027 opening, it may feature a casino larger than Wynn Las Vegas.

While the UAE may not easily surpass the profitability of destinations like Singapore and Macau, it retains a substantial gaming revenue potential. Launching regulated gambling should lead to significant long-term growth and attract significant foreign investments. High-profile casino resorts would also bolster the UAE’s tourism sector, attracting more diverse visitors.

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