UAE’s first casino to open as part of integrated resort in Ras Al Khaimah
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As the United Arab Emirates moves to legalise gambling, Wynn Resorts has announced plans for a “multi-billion” dollar integrated resort to be built in Ras Al Khaimah.
Wynn Resorts - which in addition to its US properties also operates three casinos in Macau - will team with developer Marjan and RAK Hospitality Holding to develop a 1,000-room luxury hotel with 10 restaurants and lounges, a spa, a convention facility, shopping venues and gambling area as part of the Al Marjan Island resort project.
The announcement came in tandem with a statement from the Ras al-Khaimah Tourism Development Authority (RAKTDA) introducing a new division, called the Department of Entertainment and Gaming Regulation, that will regulate “integrated resorts” that include hotel operations, entertainment spaces and “gaming”.
After talks with management, the firm said the deal is likely to be structured along the lines of a management contract lodging structure, under which Wynn receive a fee of about 5% of net revenue, plus an investment fee based on EBITDA.
It will also own a piece of the real estate venture from which it could receive dividends.
Wynn is likely to invest about US$250 to US$300 million in the project, Deutsche Bank said, adding that Wynn fees are likely to be US$60 to US$80 million assuming US$300 million of EBITDA.
Wynn said the resort will be the largest of its kind foreign direct investment in Ras Al Khaimah.
Craig Billings, newly appointed Chief Executive of Wynn Resorts, commented “Al Marjan Island is a pristine setting and an ideal greenfield location for us to create the one-of-a-kind guest experiences for which Wynn Resorts is renowned.
"The region offers tremendous potential for the hospitality and tourism industry, and we are excited about the prospect of developing an integrated resort in Ras Al Khaimah.”
The man-made Al Marjan is located 15 minutes from Ral Al Khaimah airport and 45 minutes from Dubai International Airport.
Marjan is the master developer of free-hold property in Ras Al Khaimah, which is being positioned as a leading tourism and investment destination in the region.
RAK Hospitality is an integrated hospitality and leisure company.
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