Wynn Resorts became the first recipient of a casino license in the United Arab Emirates (UAE) last week, allowing it to include a gaming floor at the luxury resort it is already developing in Ras Al Khaimah.

The casino company announced on Tuesday during an investor presentation that it is increasing the budget of this project by $1.2bn, taking the total cost up to $5.9bn.

The aim is for the Wynn Al Marjan Island resort to open in early 2027, marking the first time a Gulf State would offer legal casino gambling.

The company’s share price is up 38% over the past month

Wynn Resorts believes gross gaming revenue (GGR) at the resort will reach $1.6bn annually. This compares favorably to revenue at the Wynn Las Vegas, which generated $628m in 2022. The company’s share price is up 38% over the past month as optimism grows about the UAE project.

Analysts believe the UAE will prove a lucrative market for casino companies, estimating annual GGR to reach between $3bn and $5bn. However, some unknown factors that will influence this number include the number of licenses that will be premitted and if locals will be able to gamble too. The most likely destinations for other casinos are Abu Dhabi and Dubai.