Operator News
Abu Dhabi – MGM keeps its sights on Abu Dhabi and Dubai as Middle Eastern promise nears
By Phil - 18 March 2024
MGM Resorts International CEO Bill Hornbuckle has said that the emergence of gambling and betting in the Middle East will likely begin with the launch of a lottery in the United Arab Emirates followed potentially by the first casino licence in Abu Dhabi, even before the launch of Wynn’s casino resort in Ras Al Khaimah. He also tipped Dubai as a potential frontrunner, adding that the Middle East was a ‘fascinating’ market.
Speaking at a broadcast of the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Access Forum, Mr. Hornbuckle said: “I think they will start with lottery and go into digital gaming, and probably the actual first license will be issued in Abu Dhabi, followed potentially by what’s happening with Wynn in Ras Al Khaimah. Then we would hope either through an opportunity in Abu Dhabi or in Dubai, we will go after one – recognizing that the ruler, the leader in each emirate has to approve it. That is how that works.”
“We’ve been on the ground there for over a year-and-a-half and we think we know who the development partner is, the government will appoint that development partner,” Mr. Hornbuckle added. “They’ve reached out to us and asked for proposals. We’re in the process for that as I’m sure others are as we speak. I think they will go quick in identifying a partner: months not years, like this coming summer. Ultimately we will go forward – assuming that the decree happens and the regulations come out – very quickly from there.”
MGM Dubai will launch three MGM Resorts-owned hotel brands; MGM, Bellagio and Aria with a 150,000-square foot space set aside for a gaming floor if the casino opportunity arises.
Mr. Hornbuckle also spoke about the new market opportunity in Thailand.
“Thailand is new, it’s early days,” he explained. “The real question for all of us will be whether the regulatory regime is at a high enough level that it holds mustard and will the government participate in the proper way going forward. We’re like everyone. There’s a host of the usual characters poking around, looking for sites and looking for partners.”
Last year, Wynn Resorts CEO Craig Billings gave his own verdict. “We believe it highly unlikely that every emirate will ultimately avail themselves of the right to host an integrated resort,” he said. “There’s a whole bunch of reasons for this, ranging from cultural nuances to population density, to varying degrees of need for the additional visitation. Our view is that it will likely be us and us alone for a multiyear period given that we are well underway on construction now.
“And of course, we all know the advantages of being first as we have seen in other markets. After that, it may be a duopoly or an oligopoly of three, but I find either ultimate market structure undaunted given the database advantages of being first and the fact that we very successfully operate in the two most competitive markets in the world, Vegas and Macau.”
