Wynn Resorts today expressed its interest in bidding for a casino permit in Bangkok, while also noting that construction on its integrated resort in the United Arab Emirates (UAE) is advancing rapidly. The Las Vegas-based company had previously indicated its interest in Thailand, but recent comments from executives during a conference call with analysts represent the most explicit statements on the subject to date.
CEO Craig Billings, responding to a question from Morgan Stanley analyst Stephen Grambling, confirmed the company’s intentions. “We would pursue it out of Wynn Resorts out of the U.S.-listed entity,” Billings said. “It’s still early days. You’re right, there has been progress, and it’s encouraging to see, and it seems as though the legislators in Thailand really want to get this moving, which is great.”
Billings mentioned that Bangkok is the likely focus for Wynn as it seeks a casino license in Thailand. The Thai capital is the country’s largest city by population.
In an interesting coincidence, Wynn’s announcement came just a day after Thai politicians released draft rules concerning casino gaming in the country. Thai citizens have until August 18 to comment on these proposed regulations. The draft rules suggest a 30-year licensing period and stipulate that casinos should occupy only 5% of the overall square footage of integrated resorts. The Thai government is also considering a concessionaire model similar to Macau’s, which would make the government a partner in casino operations.
While details remain preliminary and haven’t been formally approved, gaming companies including Wynn remain in wait-and-see mode. “We need to see more details on the regulatory and licensing structures, but the market is an attractive market, and it’s probably conducive to meaningful investment,” Billings said. He highlighted Thailand’s robust tourism infrastructure, strong service culture, and favorable operating expense structure as positive factors. “So we’re continuing to monitor the process very, very closely and we’re active on the ground there.”
In addition to its Thai ambitions, Wynn Resorts also provided updates on its UAE project. During the second quarter, Wynn contributed $357 million of its equity to the Wynn Al Marjan Island project, including acquisition of a 40% pro rata share of 155 acres on the island where the venue is being constructed. “As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the Island,” Billings noted. “Of course, we have banked land before in the US and Macau, and we are confident that acquiring this sizable Al Marjan land bank will prove valuable over the long term.”
The hotel construction on the UAE project has now reached the 15th floor and stands at 90 meters, making it already the tallest building in that Emirate. Last week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi—a move that some industry observers believe could pave the way for casino gaming approval. Should this happen, Wynn could have a significant head start on competitors eyeing the UAE market.
