Posted on: August 6, 2024, 06:38h.
Last updated on: August 6, 2024, 06:38h.
Wynn Resorts (NASDAQ: WYNN) today said it would be interested in bidding for a casino permit in Bangkok while noting construction on its integrated resort in the United Arab Emirates (UAE) is progressing at a brisk pace.
The Las Vegas-based company previously confirmed interest in Thailand, but comments made by executives to that effect on a conference call with analysts this afternoon are among the operator’s most over to date on the matter.
We would pursue it out of Wynn Resorts out of the U.S.-listed entity,” said CEO Craig Billings in response to a question from Morgan Stanley analyst Stephen Grambling. “It’s still early days. You’re right, there has been progress, and it’s encouraging to see, and it seems as though the legislators in Thailand really want to get this moving, which is great.”
In prepared remarks earlier on the call, Billings identified Bangkok as the city Wynn is likely to focus on in pursuit of a Thailand casino license. That’s country’s capitol city and its largest by population.
Good Timing for Wynn to Comment on Thailand
In what’s no more than interesting coincidence, Wynn’s second-quarter earnings report arrived a day after Thai politicians posted draft rules pertaining to casino gaming in the country. Citizens there have until Aug. 18 to comment on the matter.
Those rules include a proposed 30-year licensing period and a mandate that casinos command just 5% of integrated resorts’ overall square footage. The Thai government is also seeking the concessionaire model akin to what’s used in Macau, meaning the government would essentially be a partner of gaming companies operating casinos there.
Those are among the details that are known at this point, but they haven’t been formally approved, meaning gaming companies and their executives are still in wait-and-see mode on Thailand.
“We need to see more details on the regulatory and licensing structures, but the market is an attractive market, and it’s probably conducive to meaningful investment, pending, again, a deeper understanding of the regulatory and licensing structure, you have amazing tourism infrastructure, you have a really strong service culture and a favorable operating expense, structure available in that market,” added Billings on the call. “So we’re continuing to monitor the process very, very closely and we’re active on the ground there.”
Wynn Touts UAE Progress
In the second quarter, Wynn contributed $357 million of its equity to the Wynn Al Marjan Island project in the United Arab Emirates (UAE). That include the acquisition of a 40% pro rata share of 155 acres on the island on which the venue is being built.
“As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the Island,” noted Billings. “Of course, we have banked land before in the US and Macau, and we are confident that acquiring this sizable Al Marjan land bank will prove valuable over the long term.”
Hotel construction is now up to the 15th floor and stands at 90 meters, making the Wynn venue already tallest building in that Emirate. Last week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi — a move some industry observers expect will pave the way for approval of casino gaming. Should that happen, Wynn could have a significant head start on rivals eyeing the UAE.
