MGM Resorts’ investment in a property in the UAE is laying the platform for establishing a casino in Dubai, which it outlined as the key marketplace in the region.
Chief Executive Officer, Bill Hornbuckle, provided an update as the company continues to progress in its non-gaming management agreement to bring the firm’s Bellagio, Aria and MGM Grand brands to the region alongside Wasl Hospitality.
Though the resort, slated to open in late 2028, will not host a casino upon formation, the UAE’s wider shift towards embracing gambling may see the firm in a strong position to capitalise on a shift in framework and opportunity for a casino licence in the future.
Hornbuckle commented: “It’s not our project, so it’s on behalf of the Wasl that’s to do the construction of it and the capital of it. But it is a platform for a casino someday.
“Longer term, we’re excited by particularly where the airport is and where it’s going. We think Dubai is the marketplace there. We’re comfortable just having a management agreement to manage something we think is a real brand extender for now, and we’ll see.”
Like Wynn before it, MGM confirmed that construction has remained largely undisrupted despite the growing uncertainty in the Middle East caused by the ongoing tensions between the US, Israel and Iran.
The conflict has now moved into its third week, and the UAE continues to intercept Iranian drones over its key infrastructure.
Despite this, there has been a concerted effort from the business community in the UAE to project an image of safety and security for the region, which is heavily reliant on foreign visitors and overseas investment.
As energy prices spike due to the impact of the conflict, US President Donald Trump moved to reassure his country that the war is nearing its end. However, fresh strikes continue to rock Gulf countries into Friday morning.
Hornuckle expressed his own belief that there will be ‘safety in the region’.
‘Betting my career’ on Japan success
Elsewhere in Asia, MGM is also undertaking the construction of Japan’s first casino as part of an integrated resort in Osaka alongside the Orix Corporation.
The project is set to cost over $8bn (£6bn), and Jonathan Halkyard, MGM’s Chief Financial Officer, said that he expects the resort to be the ‘largest and most successful’ since Marina Bay Sands – Las Vegas Sands’ Singapore construction.
“I think it’s really important longer term. I’m betting my career on it, literally,” added Hornbuckle, who compared the potential of the Japanese market favourably in comparison to that of Singapore.
“If we start with a $2bn (£1.5bn) cash flow business, we’re going to net about $800m (£603.1m) out of this, given our stake and given our share. It’s a meaningful business”
He also cited the success of Japan’s Pachinko market, which, to this day, is over $30bn (£22.6bn)’, and the proximity of the Osaka venue to Shanghai and Beijing compared to Macau – Asia’s perennial gambling hub – as further reasons for optimism.
MGM Osaka is scheduled to open in 2030, and the company confirmed that investment in the project will reach $450m (£339.2m) this year and increase in the coming years.
