Despite an unimpressive third-quarter earnings report, Wynn Resorts is doubling down on its ambitious expansion into the UAE, specifically through its landmark Wynn Al Marjan Island project in Ras Al Khaimah. CEO Craig Billings was optimistic about the UAE project, set to launch in 2027, as the operator expects it to usher in a new era in Middle East luxury tourism.
Macau Remains a Significant Revenue Driver
Wynn’s third-quarter report, out Tuesday, showed mixed results. Although losses narrowed considerably from $116.67 million in Q3 2023 to $32.05 million this year, revenue and earnings showed only modest improvements. Wynn reported a rise in casino revenues to $1.02 billion, but they failed to offset the $1.56 billion in operating expenses.
Las Vegas operations underperformed with a 13.6% decline in casino revenue to $145.18 million. Table games handle in Sin City saw a significant 14.3% drop, while slots rose by 3.5%, reflecting shifting customer preferences. In contrast, Encore Boston Harbor proved resilient, with casino revenue up 1.8% to $158.74 million, underpinned by modest increases in table games and slots.
Las Vegas year-over-year comps are increasingly challenging, but demand from the high-end consumer remains stable. Between Wynn and Encore, we’re pleased with the performance of our business here.
Craig Billings, Wynn Resorts CEO
The company’s Asia operations remained robust, as Macau casino revenue surged almost 29% year-on-year to $296.78 million. Wynn Palace on the Cotai Strip registered a flat $418.04 million in casino revenue, though VIP turnover climbed 11.6%, underscoring continued demand in the high-roller market. Hotel occupancy rates remained exceptionally high, with Wynn Palace and Wynn Macau reaching 98.3% and 98.9%, respectively.
Wynn Al Marjan Promises to Deliver Substantial Growth
Despite the less-than-stellar quarterly figures, Wynn’s vision for the future rests heavily on its venture in the UAE. This quarter, the company invested $18.2 million into its 40%-owned joint venture, Wynn Al Marjan Island, bringing its total investment in the project to over half a billion dollars. The integrated resort, due to open in 2027, is set to become the UAE’s first destination to offer regulated gaming.
CEO Billings was so convinced of the UAE resort’s potential that he referred to Wynn Al Marjan Island as a “must-see” destination for tourists worldwide. Max Tappeiner, president of Wynn Al Marjan, noted the project could position the UAE as the fourth-largest gaming market in the world, placing it alongside Las Vegas, Macau, and Singapore.
Construction is rapidly progressing on the project. We believe the UAE will be a $3 billion to $5 billion gaming market and certainly the most exciting new market for our industry in decades.
Craig Billings, Wynn Resorts CEO
Wynn Al Marjan Island represents a bold move into uncharted territory that, if successful, would provide a blueprint for future expansion into new global markets. While the company’s recent performance may indicate near-term challenges, its expansion-focused mindset could position Wynn for substantial growth over the next few years.
