RAK casino expects ‘modest’ delay from impact of Iran war

• Wynn casino to be UAE’s first
• Delay to planned Q1 2027 opening
• $1.66bn gaming revenue expected

Las Vegas casino company Wynn Resorts has said its UAE project will experience a “modest” delay as a result of conflict in the region but that financial projections have not been changed.

CEO Craig Billings fielded question after question on his Ras Al Khaimah (RAK) resort during the group’s first quarter earnings call.

“We do expect a modest delay in our opening timeline, and I expect that we will quantify that in the coming months. That said, the project continues to move forward every day,” he said.

Wynn briefly paused construction at the project in the small northern emirate of RAK in mid-March after debris from an intercepted drone fell about 15km from the site.

Before the war, the resort – the first legal casino in the country – was expected to open in first quarter of 2027. Billings did not give a new date, but when asked if a summer opening that year is possible, Billings said his hotel could brave the heat in the Gulf.

“As you all know, seasonality has an impact on gaming resorts, but not nearly the impact that it has on pure hotels,” he said, referring to hot summer months. “I think in the long run, I would anticipate the same in the UAE.”

Unlike Europe, summer is the UAE’s quiet season for tourism. Scorching temperatures drive most hotels to lower rates and visitor numbers drop compared with spring and winter. If Wynn opens in summer 2027, it will be asking visitors to lounge in 40C temperatures.

More than 22,000 construction workers are working at Wynn Al Marjan, as well as 368 hotel employees, according to the group’s investor presentation. Building continues, but Wynn cites “conflict-induced delays in materials”.

Billings said that higher shipping costs would be little more than a “rounding error” for the $5 billion project, but that longer construction periods would increase costs slightly.

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Wynn is part-owner of the hotel, along with RAK’s masterplanner Marjan, which holds 60 percent. To date, Wynn has committed $1 billion, with $100 million in the first three months of this year.

In December, Wynn told investors that it expects to achieve gross gaming revenues of up to $1.66 billion a year in the UAE.

“We’re certainly not revisiting any of the numbers that we previously presented,” said Billings in this week’s call.

RAK’s wider tourism and real estate sectors are built upon the delivery of this casino hotel. After Wynn’s announcement in 2022, the once-quiet emirate underwent a groundswell of activity. Marjan calls Wynn’s impact its “WOW Factor”, projecting that 431,000 people will come to RAK just for the Wynn in 2027, going up to 717,000 by 2030.

By 2030, RAK aims for 3.5 million tourists annually.