Wynn UAE Casino Could Be Company’s Biggest Profit Driver

• Wynn Al Marjan Island could eventually become biggest profit contributor to parent company, say CBRE analysts
• Venue could generate up to $230 million in annual licensing fees
• UAE casino could become the largest fee contributor in the Wynn portfolio

Wynn Al Marjan Island could eventually become the biggest driver of profits and free cash flow for parent company Wynn Resorts (NASDAQ: WYNN), according to analysis conducted by CBRE Credit Research.

Calling the $5.1 billion casino resort in the United Arab Emirates (UAE) a “credit positive” catalyst for Wynn, CBRE analysts Colin Mansfield and Connor Parks said the first gaming venue in Middle East history could drive as much as $300 million in annual free cash flow to the Las Vegas-based parent while contributing to significant deleveraging when the property reaches maturity.

The increased diversification and introduction to a new gaming jurisdiction is also viewed favorably, especially considering the market’s potential,” note the CBRE analysts. “Wynn Al Marjan Island should benefit from being the sole casino license for multiple years and will cater to an attractive cohort of gaming and non-gaming consumers.”

Some analysts believe that with contributions from other integrated resorts in the future, the UAE could be a $3 billion to $5 billion market in terms of annual gross gaming revenue (GGR). That’s based on the assumption that the country will approve other casino licenses in the future, though it’s widely believed Wynn Al Marjan will be the only game in town for several years.

Wynn UAE Casino to Be Big Fee Contributor

Wynn Al Marjan Island will also be a passive profit generator of sorts for the parent company. At its UAE analyst/investor tour earlier this month, the operator told market participants that the new venue could generate a minimum of $110 million in annual licensing and management fees, with that figure potentially being as high as $230 million.

“Understanding how cash moves around the Wynn enterprise will become even more important once Wynn Al Marjan Island opens and begins paying fees and distributions,” add the CBRE analysts. “Both will accrue directly to the parent HoldCo (Wynn Resorts Limited), which is asset-light, un-levered, and benefits from solid cash flows of management and licensing fees across the portfolio.”

Wynn owns 40% of the UAE project and thus isn’t responsible for the entirety of the $5.1 billion cost of construction. The property is expected to open in early 2027.

Fees Matter

The UAE consortium has the right to use Wynn’s intellectual property, including logos, trademarks, and related items. Put simply, Wynn is extracting value from what’s already one of the world’s most valuable gaming brands.

Leveraging the Wynn brand and logos may go overlooked by some in the broader UAE thesis, but it could prove to be an important driver of equity performance as the venue matures.

“Wynn Al Marjan Island could eventually be the largest payer of fees, signifying its importance for the equity narrative as it can directly fuel shareholder returns,” conclude Mansfield and Parks.