Lim, Genting's Chairman, Shows Desire for UAE Casino
The Genting Group could be joining the ranks of global gaming giants looking to expand into the United Arab Emirates (UAE) if casino resorts are legalized there. During their annual meeting, Genting Singapore's Chairman Lim Kok Thay mentioned that the UAE and Thailand could be possible locations for their integrated resort (IR) expansion.
Genting Singapore, a subsidiary of Malaysia's Genting Bhd, is in charge of Resorts World Sentosa, one of the two casino resorts in Singapore. Lim hinted that one of Genting's arms could pursue a license in the UAE, but the exact plans are unclear.
In a related note, Lim thinks it's unlikely that an international tender for a casino-only development will take place. This suggests that if UAE approves casinos, licensees may adopt a similar model to that of Wynn Resorts' Wynn Al Marjan Island project in Ras Al Khaimah.
Wynn, along with Marjan LLC and RAK Hospitality Holding LLC, is partnering on the Wynn Al Marjan Island integrated resort. Wynn's financial contribution to the project is $900 million, making it a minority investor. The resort is expected to be 5.6 million square feet in size, with just 4% of that space designated for the casino. This aligns with anticipated regulatory requirements that casinos not be the focal points of the resorts that house them.
Currently, Abu Dhabi and Ras Al Khaimah seem the most likely emirates to legalize casinos, with Dubai, a popular tourist destination in UAE, still hesitant to embrace Las Vegas-style gaming venues.
If Genting were to enter the UAE market, there are several factors to consider. Though the General Commercial Gaming Regulatory Authority (GCGRA) was established nine months ago as the UAE's first gaming regulatory body, no clear timeline or process for awarding licenses exists yet. There have been rumors that the issuance of the first casino permit could happen by the end of this year, with Wynn possibly being the recipient.
By some estimates, the UAE's casino market could eventually be larger than Singapore's. Resorts World Sentosa, operated by Genting Singapore, is a significant cash cow for the company. For operators considering UAE, several questions remain unanswered, including the licensing process and timeline.
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Source: www.casino.org
