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Wynn Resorts CEO Craig Billings told CNBC’s Jim Cramer on Friday why the Las Vegas hotel and casino giant decided to expand into the United Arab Emirates, saying there’s potential to tap into a strong market there.
The UAE granted Wynn the first commercial gaming operator’s license in the country last year.
“Several analysts have come out with gaming market estimates, ranging in the $5 to $8 billion range,” he said. “To put that in perspective, the Las Vegas strip, a little over $6 billion. So that’s a substantial market opportunity.”
According to Billings, Wynn is focused on the wealth, affluence and population in the UAE. He said the company builds about one floor a week on the exterior of the resort and is currently at the 42nd level out of a planned 70. The project, he continued, is about five million square feet, 1,500 rooms and 25 places to get food and beverages.
Wynn is also set to expand into London, and Billings said the project is “a small acquisition in dollar terms, but a big acquisition in strategic terms.” The company will not only gain a database about customers from that region, but also more fuel for its UAE business, because many customers from the UAE spend time in London. Billings also discussed Wynn’s other ventures, saying it may build new casinos in Las Vegas, and it’s currently considering doing business in Thailand.
Billings said that for the moment, Wynn’s customer base is fine, despite widespread worries about inflation, tariffs and the macro economy.
“Our customer tends to be more levered to the market and…what’s happening in the markets,” he said.
