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In a landmark move, regulators in the United Arab Emirates (UAE) have granted the country's first lottery license and made public the regulations governing casinos and gambling. This marks a major shift towards legalized gaming, positioning the UAE as the first Gulf state to officially allow such activities.
On Sunday, the General Commercial Gaming Regulatory Authority (GCGRA) revealed its plans for the future of gaming in the UAE. The GCGRA website, which was previously restricted, now outlines the process for issuing casino licenses, as well as provisions for slot machines, poker tables, and other gaming options. The application form for a gaming license allows operators to select from all seven emirates, hinting at the potential for gaming to extend beyond Ras Al Khaimah, Abu Dhabi, and Dubai.
“The launch of the UAE Lottery is a pivotal event that not only marks the establishment of a disciplined world-class regulatory framework for lottery activities but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE,” said Jim Murren, chairman of the GCGRA, in a press release issued on Sunday.
In response to questions regarding the lottery license and gambling regulations, a representative from the GCGRA did not immediately provide additional comments.
According to GCGRA’s official website, "Commercial Gaming refers to any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items." The authority will oversee lotteries, internet gaming, sports wagering, and land-based gaming facilities, with approved games including slots, roulette, blackjack, baccarat, craps, and more.
One of the potential developments could be the re-entry of Caesars into the Dubai market, as a sports betting license would allow operators like Caesars, which exited Dubai in late 2023, to resume operations.
Internet gaming is also set to expand, including bingo, casino games such as slots and poker, eSports, fantasy games, and other skill-based games. This will provide a broad range of options for players across the UAE.
As of now, only one license has been issued. The lottery license was awarded on Sunday to The Game LLC, a commercial gaming operator specializing in game development, lottery operations, and gaming-related content. The newly launched ‘UAE Lottery’ is currently the only licensed gaming operation in the country. This means that long-standing lottery operators like Mahzooz and Big Ticket cannot legally continue offering their services.
While a licensing framework for casinos has been introduced, no specific property in the UAE has been publicly granted a gaming license yet. However, the GCGRA emphasizes strict regulatory standards, requiring licensed gaming businesses to undergo audits every two years.
“Gaming operators shall implement a Socially Responsible Gaming Program in accordance with the GCGRA’s RG Framework and have it audited at least every two years by a GCGRA-Approved auditor. This includes player education, responsible marketing, employee training, and evaluation plans to measure the effectiveness of these initiatives,” stated the authority.
Additionally, each business licensed to operate gaming facilities must appoint a key individual responsible for maintaining socially responsible gaming practices. Moreover, operators are required to have a "qualifying domestic entity" (QDE) in the UAE or a relationship with one. A QDE, as defined by the GCGRA, is a UAE-based company with "substantial business operations in the jurisdiction."
Wynn Al Marjan Island, with an expected opening date in 2027, is anticipated to be the first resort to receive a gaming license. Other mega-resorts such as Atlantis Dubai and MGM Dubai are also seen as potential contenders for casino licenses. Wynn Resorts, which is managing developments in Ras Al Khaimah, has registered trademarks for "Encore Marjan Island" and "Marjan Strip," further fueling speculation about additional hotel-casino projects in the area.
Wynn CEO Craig Billings commented in an April 2023 webcast that Wynn was actively exploring opportunities for developments adjacent to Wynn Al Marjan Island. "We and our partners are in active discussions around those adjacent parcels [of land] and I expect additional hotels will act as a powerful feeder to Wynn Al Marjan Island," he said.
According to CBRE analysts, casinos in the UAE could generate up to $8.5 billion in revenue, assuming multiple casinos open. “We believe the UAE represents one of the most compelling opportunities in global gaming given its robust existing tourism industry, high propensity for luxury and consumer spending, business-friendly operating environment, strong existing transportation and lodging infrastructure, and virtually no gaming competition in the region,” said John Decree, CBRE’s director of equity research, in a report.
As for the rules governing players, the GCGRA has set out clear guidelines. Players must engage only with licensed operators, as playing with unlicensed operators, including lottery providers, is illegal and could result in severe penalties. Players are also encouraged to stay informed about the games they participate in, including the odds and associated risks. Tools to help players manage time and money spent on gaming will also be made available, with options such as setting deposit limits on a daily, weekly, or monthly basis.
The GCGRA has introduced "cooling off periods" for online gaming. This means operators are required to stop communicating with players for a minimum of 72 hours if requested by the player.
Operators are also mandated to provide self-exclusion programs, allowing players to take breaks from gaming activities if they feel they need to regain control over their gaming behavior.
These player management tools, along with the comprehensive framework for responsible gaming, are designed to create a secure gaming environment in the UAE.
By fLEXI tEAM
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