\n Posted on: October 10, 2024, 04:05h.\u00a0\n <\/p>\n
\n Last updated on: October 10, 2024, 04:05h.\n <\/p>\n
![\"Avatar](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-50x50.png\")
<\/div>\n<\/p><\/div>\n<\/p><\/div>\nWynn Resorts\u2019 (NASDAQ: WYNN) integrated resort in the United Arab Emirates (UAE) is poised to benefit from attractive demographics and a favorable tax regime, according to JPMorgan analysts.<\/p>\n In a new report to clients, analysts led by Joseph Greff noted Wynn Al Marjan Island<\/a> in Ras Al Khaimah (RAK) could draw from a lucrative client pool. At an investor event in Las Vegas earlier this week, Wynn noted the casino hotel is a 50-minute drive from Dubai International Airport, putting it within an eight-hour flight for 96% of the world\u2019s population. Greff and team narrowed that pool.<\/p>\n Core target markets represent approximately 25 percent of the world\u2019s population, 20 percent of global GDP, and nearly 20% of the world\u2019s millionaires,\u201d wrote the JPMorgan analysts.<\/p>\n<\/blockquote>\n The Wynn venue, which will be the first regulated casino hotel in the Arab world, is under construction and expected to open in early 2027. With the UAE\u2019s vast oil wealth and its rising number of ultra-high-net-worth citizens coupled with Dubai\u2019s status as a playground for the elite, demographics are relevant to Wynn Al Marjan Island and explain why some analysts are comparing<\/a> the UAE\u2019s still nascent casino market to Singapore\u2019s.<\/p>\n At the investor event, Wynn said the budget for the UAE venture has expanded to $5.1 billion and its expected capital contribution will be $1.1 billion. Looking further out, the operator expects the UAE casino hotel to generate adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) of $390 million to $570 million on sales of $1.38 billion to $1.88 billion.<\/p>\n A free cash flow forecast<\/a> of $170 million to $350 million and expected return on invested capital of 9.8% to 15.7% are in-line with analyst estimates. Greff said those forecasts aren\u2019t particularly aggressive and the UAE\u2019s gaming regulatory environment appears hospitable.<\/p>\n<\/div>\n \u201cThe regulatory framework compares favorably with some of the largest IR markets in the world, sporting a 10 percent to 12 percent tax rate on gross gaming revenue (GGR),\u201d added the analyst.<\/p>\n That compares with the 40% rate in Macau. Speaking of Macau where Wynn\u2019s Wynn Macau arm runs two casino hotels, there\u2019s a 10-year licensing period in the Chinese territory, but Wynn Al Marjan Island has been granted a 15-year permit<\/strong>.<\/p>\n![\"Al-Marjan](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/Al-Marjan-Island-142x81.jpg\")
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UAE Regulatory Setup Favorable for Wynn Casino<\/h2>\n
UAE Could Be \u2018License Constrained\u2019<\/h2>\n