Last week, Wynn Resorts (NASDAQ: WYNN) announced its acquisition of the Crown London casino, a small, exclusive establishment in the prestigious Mayfair District. Although this type of property-level purchase is unusual for a US gaming company, the deal holds significant strategic merit.
According to a recent report by CBRE Equity Research analyst John DeCree, while the casino—formerly known as Aspinalls—doesn’t generate substantial cash flow and London’s VIP casino market has struggled since the onset of the coronavirus pandemic, there is solid strategic logic behind Wynn’s acquisition.
“We view this as a very strategic purchase for Wynn. Aspinalls caters to high-end VIP gaming customers from London and internationally, including Asia, India, and the Middle East, making it a unique customer acquisition tool for Wynn Al Marjan Island,” DeCree explained.
Financial details of the transaction, which is expected to close in the second half of this year, were not disclosed. Crown London, a members-only casino founded by John Aspinall, was acquired by Australia-based Crown Resorts in 2011.
Strengthening Wynn’s Position in UAE
Although Wynn’s acquisition of Crown London is unconventional for a US casino operator, it could yield significant benefits as Wynn prepares to open its integrated resort in the United Arab Emirates (UAE) in early 2027. Wynn CEO Craig Billings highlighted this potential.
“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, particularly Wynn Al Marjan Island, slated to open in the first quarter of 2027 in Ras Al Khaimah, UAE,” he stated.
DeCree supported this view, noting that Crown London could play a crucial role in raising brand awareness among clients who might travel to the UAE, particularly Indian bettors—a demographic more likely to travel to the UAE than Macau.
“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,” added DeCree.
Marketing Potential of Crown London
With Wynn Al Marjan Island expected to open in two years, and the hotel tower scheduled to be topped off by the end of 2025, the first casino resort in the Arab world could significantly boost Wynn’s shares as the year progresses.
However, some analysts argue that the investment community has yet to fully price the UAE opportunity set into Wynn’s shares. This highlights the importance of leveraging the Crown London acquisition to drive traffic to the UAE resort upon its opening. Analysts estimate that the UAE could become the world’s fourth-largest gaming market when fully operational. DeCree sees significant value in the Crown London acquisition as a marketing tool for Wynn.
“This is a high-end gaming asset with high-intent customers, making it a more deliberate customer acquisition channel relative to a branded hotel strategy or partnership,” DeCree concluded.
Conclusion
The acquisition of Crown London by Wynn Resorts is poised to bolster Wynn’s presence in key international markets, particularly as it prepares for the grand opening of Wynn Al Marjan Island in the UAE. This strategic move underscores Wynn’s commitment to expanding its global footprint and attracting a diverse clientele.
