Wynn Resorts has outlined its financial forecasts for its upcoming Wynn Al Marjan Island resort in Ras Al Khaimah (RAK), where it projects gross gaming revenue of up to $1.66bn.
The Las Vegas-based casino operator also shared expectations for its operating revenue and adjusted property EBITDA at an analyst and investor update meeting this week about the resort based in the United Arab Emirates (UAE).
CEO Craig Billings and other members of the Wynn Resorts global leadership team were in attendance at the invitation-only event to deliver presentations.
The investor update followed Wynn Resorts’ announcement earlier this week that it had been issued a Commercial Gaming Facility Operator licence from the General Commercial Gaming Regulatory Authority (GCGRA) for its UAE resort.
Wynn Resorts has been developing and constructing a resort at Wynn Al Marjan Island in RAK over the past year as part of a joint venture between affiliates of Wynn Resorts, Marjan and RAK Hospitality Holding.
At the meeting, the operator revealed that it expects Wynn Al Marjan Island to generate “strong gaming and non-gaming revenue”.
This is based on assumptions that the UAE market size is approximately $3bn to $5bn, in addition to two competitive integrated resorts operating in the country with Wynn GGR market share at 33% and a “Wynn Premium” of 1.2x GGR fair share based on 11K positions in the market.
From a regulatory perspective, the operator noted that UAE will have a blended tax rate of 10% to 12%, with the number of licences being a maximum of one land-based licence per Emirate, a licence which is valid for 15 years and is renewable.
Wynn Resorts is expecting “significant demand” for its product offering, driving “strong non-gaming revenues, including from nearby resorts”. In total, the operator is forecasting GGR to be between $1bn and $1.66bn with a base of $1.33bn, split between international VVIP (37%), international tourism (29%) and domestic (34%).
For operating revenue, Wynn Resorts is expecting between $1.375bn and $1.875bn with a base of $1.625bn, while adjusted property EBITDAM is predicted to be between $500m and $800m with a base of $625m. The EBITDA margin for Wynn Al Marjan Island is expected to be between 36% and 43%, with a base of 38%.
The adjusted property EBITDA is predicted to be between $390m and $570m with a base of $465m, while free cash flow is forecast to be between $170m and $350m with a base of $245m.
The total estimated project budget is $5.1bn, which includes land, fees and capitalised interest.
Wynn’s equity contribution is expected to be $1.1bn with approximately $900m left to spend, with the operator adding that a target debt raise of $2.4bn “progressing well” and oversubscribed with demand from local and international lenders and an aim to close the debt raise by year’s end.
The operator added that the project is pacing towards opening in the first quarter of 2027.
