MGM Resorts Looking for Abu Dhabi Gaming License to Expand in the Middle East
MGM Resorts
MGM Resorts has officially submitted its proposal to the UAE government to operate a casino, marking a significant step as the first major international casino operator to publicly announce its bid. The application, submitted in Abu Dhabi, comes as the UAE’s General Commercial Gaming Regulatory Authority (GCGRA) opens the door for gaming licenses. MGM, which is also developing a non-gaming resort in Dubai, faces competition from Wynn Resorts, which is advancing its own casino project in Ras Al Khaimah. MGM CEO Bill Hornbuckle expressed optimism about the license process but emphasized that MGM’s entry into Abu Dhabi hinges on securing the casino license.
MGM Resorts Submits Casino License Application in UAE
First Major Casino Operator to Confirm License Application
MGM Resorts has officially submitted its application to operate a casino in the UAE, becoming the first prominent international operator to publicly confirm its bid. The announcement was made by MGM CEO Bill Hornbuckle during the Skift Global Forum 2024, where he expressed optimism about obtaining the license. “Yes, we have applied. We’ve done it in Abu Dhabi,” Hornbuckle stated, highlighting that the federal government in Abu Dhabi manages the licensing process, though individual emirates have the ultimate authority to approve or deny casino operations.
Focus on Abu Dhabi Despite No Current Projects
Although MGM currently has no operational projects in Abu Dhabi, the company is strategically targeting the capital city for its gaming operations. Hornbuckle emphasized that MGM’s business model is inherently tied to gaming, stating, “That’s the business MGM is in,” underscoring the company’s commitment to establishing a casino before pursuing any non-gaming ventures in the emirate.
Non-Gaming Development in Dubai and Regulatory Landscape
Development of Non-Gaming Resort in Dubai
MGM is also progressing with a non-gaming resort in Dubai, featuring three hotel towers branded under the Aria, MGM Grand, and Bellagio names, totaling 1,500 rooms. While this development does not include casino operations, it demonstrates MGM’s broader strategy of establishing a footprint in the UAE’s hospitality market.
Licensing Process and Regulatory Oversight
The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) began accepting proposals for gaming licenses in July 2024. The process includes an initial intake form and screening, with successful applicants invited to apply for a casino license. The GCGRA is chaired by Jim Murren, MGM’s former CEO, although Murren does not participate in the selection committee for gaming licenses. Hornbuckle expressed hope that the regulatory framework would become clearer by the end of the year.
Competition and Market Dynamics
Wynn Resorts: A Key Competitor
MGM faces direct competition from Wynn Resorts, which is advancing its own casino project in the UAE with the Wynn Al Marjan Island resort in Ras Al Khaimah. Wynn’s $3.9 billion development is set to include a casino, although Wynn has not formally confirmed its license application. Wynn CEO Craig Billings has publicly expressed confidence in the UAE’s potential, describing it as the “most exciting new market for our industry in decades.”
Challenges and Cultural Considerations
Hornbuckle acknowledged the cultural and regulatory hurdles associated with introducing gaming in the UAE but remained confident that progress is being made. “There’s going to be something happening in Abu Dhabi; it’ll take some time to build,” he noted, contrasting Wynn’s advanced position with MGM’s current status. Despite these challenges, Hornbuckle’s optimism suggests MGM is prepared to navigate the complex landscape to establish a presence in the region.
Conclusion: A Strategic Gamble in a New Market
MGM’s Calculated Approach to UAE Expansion
MGM Resorts’ bid for a casino license in Abu Dhabi underscores its strategic ambition to enter the UAE market, leveraging its global expertise in gaming to tap into a potentially lucrative new territory. While competition from Wynn Resorts and regulatory uncertainties pose significant challenges, MGM’s proactive stance and targeted approach reflect its commitment to becoming a key player in the region’s evolving hospitality and gaming landscape. As the UAE continues to explore the potential of legalizing gaming, MGM’s early move could position it favorably in what could become one of the most transformative new markets for the industry.
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