Wynn Resorts Hopes London Deal Will Bring Rich Brits and Indians to UAE Casino
Skift Take
Key Points
- Wynn Resorts is acquiring Crown London to attract more British and Indian visitors to its UAE casino projects.
- The acquisition is seen as strategically significant despite Crown London's small size and low cash flow.
- The move aims to boost Wynn's brand power in the region and leverage high-end international VIP gaming customers.
Summary
Wynn Resorts is acquiring Crown London, a small casino, to strategically attract British and Indian tourists to its UAE projects, particularly Wynn Al Marjan Island. Despite the property's modest size and low cash flow, the acquisition is seen as a valuable move to enhance Wynn's brand and customer base, capitalizing on the London VIP casino market and international gaming clientele, including from Asia, India, and the Middle East.
Wynn Resorts has announced it will acquire Crown London, a small member’s club and casino in the UK capital. It’s not a huge acquisition: Crown London has just 20 gaming tables compared to the hundreds at Wynn Las Vegas. But the takeover is a strategic move by Wynn to draw in more British and Indian business to its bigger projects.
Wynn Resorts CEO Craig Billings said: “This acquisition of an iconic asset offers us a presence in a global gateway city and will create a conduit for Wynn guests to visit our resorts.”
Billings specifically called out the potential for it to increase visitors to Wynn Al Marjan Island, in Ras Al Khaimah in the United Arab Emirates.
The acquisition of the British casino, formerly known as London Aspinalls, is subject to regulatory approvals.
In a note sent to investors, CBRE’s John DeCree described the acquisition as “small but strategically significant” – even if the property itself does not generate meaningful cash flow.
“The London VIP casino market had been in decline prior to the pandemic, and we suspect the asset probably doesn’t generate much cash flow (if any) today,” he said.
“That said, we view this as a very strategic purchase for Wynn. Aspinalls caters to very high-end VIP gaming customers from London but also internationally, including from Asia, India and the Middle East, making it a very unique customer acquisition tool for Wynn Al Marjan Island.”
“Aspinalls hosts a regular Bollywood Night, and India is one of the top feeder markets for tourism to the UAE. This acquisition gives Wynn a flag in a gateway city that should help build the global database and boost Wynn’s brand power in the region ahead of a blockbuster opening in the UAE.”
Billings said during an earnings call last year that while Europe is an important market for the UAE in general, India is also a huge market for that part of the world. “There’s a lot of folks there. There’s a lot of wealth in India, and that’s going to be an important market [for Wynn Al Marjan].”
Photo Credit: Flickr / Sangudo
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