Wynn confirms interest in Thai casino license, advances UAE project

Wynn Resorts has announced its intention to pursue a casino license in Bangkok, Thailand, and reported significant progress on its integrated resort development in the United Arab Emirates (UAE). The company shared these updates during a Q2 conference call with analysts.

CEO Craig Billings revealed Wynn's strategic interest in entering the Thai market, emphasizing the potential of Bangkok as a prime location for a new casino. “We would pursue it out of Wynn Resorts, out of the U.S.-listed entity,” Billings stated in response to a question from Morgan Stanley analyst Stephen Grambling.

“It’s still early days. You’re right, there has been progress, and it’s encouraging to see, and it seems as though the legislators in Thailand really want to get this moving, which is great.”

This announcement follows the release of draft regulations by the Thai government regarding legal casino operations earlier in the week. These regulations, open for public comment until August 18, propose a 30-year licensing period and stipulate that casinos occupy no more than 5% of the total area of integrated resorts. The draft also suggests a concessionaire model similar to that of Macau, where the government partners with gaming operators.

Billings highlighted the favorable conditions in Thailand: "It is an attractive market, and it’s probably conducive to meaningful investment. You have amazing tourism infrastructure, a really strong service culture, and a favorable operating expense structure available in that market."

Wynn Resorts is also making headway on its Wynn Al Marjan Island project in Ras Al Khaimah, UAE. During the second quarter, the company invested $357 million in equity, including acquiring a 40% share of 155 acres on the island. The construction has reached the 15th floor, with the building now standing at 90 meters, making it the tallest in the emirate.

Billings noted: “Our joint venture now owns not only the land under Wynn Al Marjan but also 70-plus acres of land for potential future development on the island.” This development aligns with recent regulatory advancements in the UAE, such as the approval of a lottery by the General Commercial Gaming Regulatory Authority (GCGRA) in Abu Dhabi, which may pave the way for future casino gaming.

Discussing the market potential, Billings said: "India is a huge market for this part of the world. There’s a lot of wealth in India, and that’s going to be an important market. There are other parts of Asia that are big markets for the UAE as well."

In its second-quarter earnings report, Wynn Resorts posted a revenue increase to $1.73 billion, up 8.6% from the previous year. Casino revenue reached $1.01 billion, with additional revenue from rooms, food and beverage, and entertainment. Macau operations led revenue contributions, followed by Las Vegas and Encore Boston Harbor.

“Our second quarter results, including a new second-quarter record for adjusted property EBITDAR, reflect continued strength throughout our business,” Billings said. “I am incredibly proud of our teams in Las Vegas, Macau, and Boston.”