Wynn Resorts announced late Friday that the General Commercial Gaming Regulatory Authority of the United Arab Emirates has issued a gaming license to the entity developing the $3.9 billion Wynn Al Marjan Island resort in Ras Al Khaimah.

Issuance of the license to Wynn is a big moment, as the gaming industry views the UAE as the next major market: a CBRE report suggests that the UAE is the “next gaming frontier” that could generate $8.5 billion in gaming revenue, rivaling Las Vegas. All seven emirates are included in licensing, but Abu Dhabi, Dubai, and Ras Al Khaimah are considered the primary ones interested in expanding.

The Al Marjan Island project is a joint venture between affiliates of Wynn Resorts, Marjan, and RAK Hospitality Holding. Wynn has a 40% stake in the resort, expected to open in 2027.

The approval wasn’t unexpected. In July, John DeCree, director of equity research at CBRE, released a report to investors highlighting that the GCGRA, the federal gaming regulator of the UAE, launched a website that details commercial licensing procedures, lists license types, defines commercial gaming, and profiles key regulatory personnel. Former MGM Resorts International CEO Jim Murren is chairman of the UAE’s gaming regulatory authority.

Now, attention will turn to MGM and others. MGM has a $2 billion-plus non-casino hotel project underway in Dubai. It has partnered with Wasl, a hotel owner and Dubai developer with ties to the government.

At the Skift Global Forum in New York in September, MGM CEO Bill Hornbuckle said the company has submitted a proposal for a license to operate a casino in Abu Dhabi. Hornbuckle will be a featured speaker Tuesday at G2E in Las Vegas and could be asked to address the latest UAE developments.

“We’ve done it in Abu Dhabi,” Hornbuckle said at the conference. “We have a long history with the region. We were partnered with Dubai World when we created CityCenter and up until a couple of years ago, they owned 50% of it. We ended up in Dubai with a $2 billion non-gaming hotel project that has an MGM, Bellagio, and Aria. If Dubai wants gaming, we could accommodate that. Each ruler has their say and each state has their say. Dubai hasn’t opined on it yet, but time will tell.”

Skift.com said MGM later clarified Hornbuckle’s comments, saying there’s no announcement of gaming in Dubai and “we’re just hoping that as the region starts to open up to gaming, it becomes a possibility, but we’ve only bid on gaming for Abu Dhabi.”

Hornbuckle was asked by the moderator at the forum whether any approval for Wynn means others would get approved quickly.

“It’s a cultural barrier. Something will happen in Abu Dhabi. It’ll take some time to build and Wynn is already out of the ground. Once you get there and it’s socially accepted – not by Emiratis, which is off limits to them – but 80% to 90% of the population are non-Emirati. It’s a huge travel destination. The Dubai airport will be the largest travel destination in the world very soon. India is a massive market and the rest of the Middle Eastern countries can be a massive market. China was coming to Dubai and will continue coming.”

The awarding of the license should help solidify the investment case for the UAE. DeCree has suggested that the investment opportunity should become more of a reality, specifically for Wynn Resorts. Despite Wynn’s construction progress at Wynn Al Marjan Island, DeCree said investors have been reluctant to incorporate its potential in equity valuation, which “we attribute mostly to skepticism related to regulation.”

In September, J.P. Morgan analyst Joseph Greff warned investors not to be fooled by the underperformance of Wynn Resorts’s stock and that it “represents a good risk-reward,” especially with its resort project underway in the United Arab Emirates.

During the second-quarter earnings call in August, Wynn announced it contributed $356.5 million of cash to its 40%-owned joint venture, bringing its to-date cash contributions to the project to $514.4 million. The cash contributed during the quarter was used primarily to fund its pro-rata portion of the purchase of about 155 acres underlying the integrated resort site, including more than 70 acres for potential future development by Wynn or third parties.

Looking out on its own white-sand beach with views of both the Arabian Gulf and Ras Al Khaimah rising to the Hajar Mountains, Wynn Al Marjan Island will feature 1,542 rooms and suites, including 22 opulent and private Villa Estates situated on the newly designed marina adjacent to the resort. There will also be an extensive poolscape adjacent to the beach, with multiple swimming and wading pools, water features, private cabanas, and tropical landscaping covering 3.6 hectares.

“The collection of 22 dining, lounge, and bar experiences will each be presented in their own uniquely designed space, many with views of the beach and poolscape,” Wynn said in the statement. “The theater will feature bespoke production shows.”