UAE Grants First Lottery Licence: Next, Casinos?
Introduction and Key Developments
ABU DHABI: The United Arab Emirates (UAE) has taken a significant step towards legalising gambling by awarding its first lottery licence, hinting at the possibility of future casinos and other gaming activities in the country. The UAE’s general commercial gaming regulatory authority announced that The Game LLC will operate the UAE Lottery. This company, based in Abu Dhabi, specializes in game development, lottery operations, and gaming content.
Jim Murren, chairman of the General Commercial Gaming Regulatory Authority (GCGRA), described the lottery licence as a pivotal event. He emphasized that this move marks the establishment of a well-regulated framework for lottery activities and highlights the UAE’s commitment to creating a secure commercial gaming environment.
Economic Impact and Regulatory Changes
Legalising gambling could bring substantial economic benefits to the UAE, attracting more tourists and investments, particularly from China. Bloomberg Intelligence estimates that the gaming industry could contribute as much as 1.3% of the UAE’s GDP, which equates to about $6.6 billion annually, surpassing Singapore’s gaming revenue. Over the past year, the UAE created the GCGRA to regulate gaming activities, shortly after Wynn Resorts announced plans to build a $3.9 billion gaming resort in Ras al Khaimah, indicating an expectation to receive a gaming licence soon.
The GCGRA has made it possible for companies to apply for gaming licences in all seven emirates. Abu Dhabi and Ras Al Khaimah are emerging as frontrunners to introduce online casinos in UAE, ahead of Dubai, which has currently paused its gambling plans. On Sunday, regulators not only approved the first lottery licence but also made public the rules for casino and gambling licences, moving the UAE closer to becoming the first Gulf state to legalize gaming.
Details of Gaming Regulation
The GCGRA’s website explains that commercial gaming includes any game of chance or skill involving money bets to win money or valuable items. The authority will regulate lotteries, internet gaming, sports betting, and land-based gaming. So far, only one licence has been approved. The lottery licence was awarded to The Game LLC, which operates under the UAE Lottery banner. This makes The Game LLC the first company legally allowed to offer gaming services in the UAE, affecting other lottery operators like Mahzooz and Big Ticket.
The licensing framework is now active, meaning casinos could open in the future. Wynn Al Marjan Island is expected to be the first to receive a gaming licence, with its opening planned for 2027. Other potential casino locations include mega-resorts like Atlantis Dubai and the upcoming MGM Dubai. Analysts believe that casinos in the UAE could generate up to $8.5 billion in revenue. CBRE director John Decree noted the UAE’s strong tourism industry, luxury spending habits, business-friendly environment, and lack of regional gaming competition as significant advantages.
Player Regulations and Responsible Gaming
The GCGRA has set clear rules for players to ensure responsible gaming. Players must only play with licensed operators, avoid unlicensed operators to evade legal penalties, stay informed about the games, odds, and risks, manage their time and money carefully using available tools, and utilize support services if needed. Players should also consider self-exclusion programs for breaks from gaming.
The GCGRA aims to promote sustainable growth through integrity, innovation, and responsible practices. Engaging in gaming without a licence from the GCGRA is illegal and can result in severe penalties. The UAE is poised to create a controlled and safe gaming environment, opening the door to a new era of entertainment and economic growth in the region.
