Does MGM have its sights set on Dubai for a resort in the United Arab Emirates?
Given that MGM Resorts recently met with the deputy ruler of Dubai, it is possible that the company is changing its focus to the construction of an integrated resort in Dubai, which is the largest city in the United Arab Emirates.
The CEO of MGM Resorts, Bill Hornbuckle, even alluded to the fact that the company had submitted a bid to construct a facility in Abu Dhabi in September of last year, giving the impression that the company was fully committed to establishing a casino in the United Arab Emirates. On the other hand, remarks made by Hornbuckle this week on MGM's earnings call for the first quarter may suggest that Dubai, where MGM is currently constructing a facility that does not feature gambling, is a target.
In a recent meeting, Hornbuckle, MGM Chair Paul Salem, and Barry Diller of entertainment powerhouse IAG, which is the operator's largest shareholder, met with Maktoum Bin Mohammed, the deputy ruler of Dubai. Maktoum Bin Mohammed is also the deputy prime minister and minister of finance for the emirate.
Dubai's gaming industry is demonstrating its potential.
This visit was brought to the attention of Truist's Barry Jonas, who brought it up on the earnings call. Hornbuckle responded by explaining that the goal of the visit was to meet the prince and provide him with an update on the Dubai project that MGM is working on. Over 1,400 hotel rooms under the MGM, Bellagio, and Aria brands will be included in the development that the business collaborated with Wasl Hospitality and Leisure to create in 2017. The building will span two million square feet and be located on Jumeirah Beach. There are no gaming components present within this establishment at the present time.
According to Hornbuckle, "[The] most important mission was to meet with the prince and provide him with an update on our project, as well as to inform him of the opportunity that we believed it could bring." According to the statement, "Not only in the context of a fully integrated resort, but also the potential gaming could bring to not only the United Arab Emirates, but Dubai in particular, as well as the entire concept of entertainment and the... unique things that we could bring to the city."
Hornbuckle proceeded by saying, "And it was a wonderful conversation throughout." "Everything is entirely up to them to decide."
Hornbuckle drew comparisons with the United States in the sense that individual laws govern whether or not gambling is permitted in an emirate. This is in contrast to the United Arab Emirates, which has a federal regulatory organisation known as the General Commercial gambling Regulatory Authority (GCGRA).
The casino intentions for Dubai are not yet known.
At the same time as Dubai is the most populous emirate in the United Arab Emirates, Dubai is also the largest metropolis in the country. On the other hand, it has not yet indicated whether or not it will permit play of games.
It was Hornbuckle who stated, "They have not said yes, and they have not said no." "We are working to create an atmosphere that is capable of accommodating it. And it is anticipated that the building would be finished by the third quarter of 2027.
According to PropSearch.ae, the construction of the MGM facility at Jumeirah Beach, which started in 2024, is scheduled to be finished in the third quarter of 2028.
There is a lot of excitement around this building. The chief executive officer of MGM stated that the project is "an exciting one, a truly interesting resort with all kinds of features." "And so, with any luck, we'll be able to incorporate gaming."
From Abu Dhabi to Dubai, according to MGM?
Wynn is already in the process of constructing the first integrated resort in the United Arab Emirates, which is scheduled to open in the year 2027. There is a great deal of conjecture regarding which resort operators could be the next to be involved.
Despite the fact that it has a property in Dubai, MGM appeared to be leaning more towards Abu Dhabi. This is despite the fact that it had previously expressed interest in entering the sector. Hornbuckle made the statement at ICE 2024 that the capital of the United Arab Emirates "feels as if it might go first," and the GCGRA is headquartered in the emirate.
On the other hand, Jim Murren, chairman of the regulator and also the chairman of Resorts World Las Vegas, gave the impression that there would be no rush to extend the market beyond Wynn Al Marjan Island. On the occasion of the Skift Global Forum East, which took place in November of the previous year, he stated that the process had been proceeding "very deliberately" and that the expansion of the market would not be hurried.
Wynn "certainly has the head start," he remarked at the time, despite the fact that other licensees would join in the "next five to ten years."
The latest provider to obtain a gaming licence in the UAE is IGT.
Only Wynn and The UAE Lottery, which is a lottery monopoly and is run by The Game LLC, have been able to obtain operating licenses up to this point. However, the process of obtaining licenses for suppliers has moved at a far faster speed.
This week, IGT became the seventh gaming-related vendor to receive a license, joining the ranks of Novomatic, Aristocrat, and EQL Games on the list of companies that have received licenses that pertain to gaming.
There is an increase in international partnership between GCGRA and NJDGE MoU.
Following the signing of a memorandum of understanding with the New Jersey Division of Gaming Enforcement this week, the Gaming Control and Gaming Regulation Authority (GCGRA) appears to have entered into a cooperation agreement with another regulatory body. As a result of the agreement, the DGE and the GCGRA will work together on projects pertaining to the protection of consumers and cybersecurity, as well as the development of technologies for responsible gaming.
According to a statement that was issued on Thursday, the interim director of the New Jersey Division of Gaming Enforcement, MaryJo Flaherty, said, "As a pioneer in gaming regulation, DGE is excited to partner with the GCGRA to share expertise in technological advancements, cybersecurity, and responsible gaming initiatives."
In addition, Kevin Mullally, the chief executive officer of the GCGRA, stated that "commercial gaming is a cornerstone of our vision for diversified economic growth." This is because commercial gaming makes a substantial contribution to tourism and foreign investment.
Through this relationship with the Department of Gaming and Enforcement of New Jersey, cutting-edge technology is brought into alignment with contemporary regulatory frameworks, which in turn unlocks economic potential while prioritising consumer protection and responsible gaming.
During his remarks during the signing ceremony, Governor Phil Murphy of New Jersey stated that the vision of the GCGRA was congruent with the state's position as a market leader in gaming regulation.
"This collaboration between GCGRA and DGE will drive innovation, strengthen consumer protections, and enhance economic opportunities in both regions," he continued. "This collaboration will be beneficial throughout both regions."
On Friday morning in New York, the price of a share of MGM Resorts was $31.62 per share, representing a gain of 2.54% overall.
