MGM Resorts, one of the largest and most recognized names in the hospitality and gaming industry, is making a significant move in the Middle East by applying for a casino license in Abu Dhabi. This decision marks a pivotal moment for the company, indicating its interest in expanding its gaming operations beyond Dubai, where it is already developing several MGM-branded hotels. Bill Hornbuckle, the CEO and President of MGM Resorts, shared insights about this application during the recent Skift Global Forum 2024.
Background: MGM Resorts in the UAE
MGM Resorts has been a prominent player in the global gaming industry, known for its luxurious resorts and innovative entertainment offerings. With a strong foothold in Las Vegas, the company has been looking to expand its presence internationally, particularly in the Middle East, which is experiencing a tourism and hospitality boom.
Current Developments in Dubai
MGM has already committed to developing multiple hotel brands in Dubai, including the MGM Grand, Bellagio, and Aria. These developments are designed to cater to a growing tourism market, leveraging Dubai’s reputation as a luxury destination. As part of this venture, MGM has allocated a 150,000-square-foot area for potential gaming operations, should regulations permit. However, the final decision regarding these gaming operations hinges on the broader legal framework surrounding casino gaming in the UAE.
Hornbuckle’s Announcement
During the Skift Global Forum 2024, Hornbuckle confirmed that MGM Resorts has submitted its application for a casino license specifically in Abu Dhabi. His remarks indicated a strategic shift towards Abu Dhabi, suggesting that the company sees more favorable conditions for gaming expansion there compared to Dubai.
“Yes we have [applied]. We’ve done it in Abu Dhabi,” said Hornbuckle. “Each ruler has their city, their state. Each can say yes or no.”
The Approval Process
Hornbuckle elaborated on the regulatory landscape in Abu Dhabi, stating that the approval process for the casino license rests with the federal government. Each emirate in the UAE has the authority to regulate or permit gaming independently, which means that the outcome of MGM’s application will depend on the unique considerations of the Abu Dhabi government.
Confidence in Abu Dhabi
Expressing optimism, Hornbuckle mentioned, “I hope and believe this year we’ll understand more about Abu Dhabi and the federal mandate and go from there.” His confidence reflects an understanding of the evolving cultural and regulatory environment in the UAE, which is gradually becoming more accommodating to international gaming operators.
Cultural Barriers and Opportunities
While expressing enthusiasm about the potential for gaming in Abu Dhabi, Hornbuckle acknowledged the cultural barriers that have traditionally restricted casino operations in the region. However, he also noted that attitudes are changing, paving the way for new opportunities.
“Look, there’s a cultural barrier to get through but that has now happened,” he remarked, highlighting the shifting perceptions regarding gaming in Abu Dhabi.
Competition in the Market
MGM Resorts is not alone in its pursuit of the UAE gaming market. Wynn Resorts, another major player in the industry, is also seeking a casino license and has already broken ground on an integrated resort development on Al Marjan Island in Ras Al Khaimah. This resort is expected to feature 1,500 rooms, the UAE’s first casino, and numerous high-end dining and entertainment options.
New Regulatory Authority
The establishment of the General Commercial Gaming Regulatory Authority (GCGRA) represents a significant development in the UAE’s gaming landscape. Led by former MGM boss Jim Murren, the GCGRA is tasked with overseeing gaming operations in the region, signaling a commitment to regulating and promoting the industry responsibly.
First Lottery License Issued
The GCGRA has already made strides in its regulatory efforts by issuing the UAE’s first lottery license, indicating a progressive approach to commercial gaming in the country. This move suggests a willingness to explore various gaming avenues, which could bode well for MGM’s casino license application.
Strategic Growth
MGM Resorts’ decision to apply for a casino license in Abu Dhabi underscores its strategic focus on diversifying its operations in high-potential markets. With a growing tourism industry and increasing interest in luxury experiences, the UAE presents a compelling opportunity for MGM to enhance its brand presence.
Economic Impact
The introduction of casino gaming in Abu Dhabi could have significant economic implications for the region. It has the potential to attract international tourists, create jobs, and stimulate local businesses, contributing to the overall economic growth of the emirate.
Long-term Vision
As MGM Resorts navigates this complex regulatory landscape, the company’s long-term vision will be crucial. The successful establishment of gaming operations in Abu Dhabi could position MGM as a leader in the Middle Eastern gaming market, allowing it to capitalize on the region’s burgeoning tourism sector.
MGM Resorts’ application for a casino license in Abu Dhabi marks a significant step in the company’s strategic expansion efforts within the Middle East. With a strong commitment to developing its brand in the region and an optimistic outlook on regulatory changes, MGM is poised to potentially lead the way in the UAE’s evolving gaming landscape. As the company awaits the outcome of its application, the developments in Abu Dhabi will undoubtedly be closely watched by industry stakeholders and competitors alike. The future of gaming in the UAE is on the brink of transformation, and MGM Resorts aims to be at the forefront of this exciting journey.