The United Arab Emirates (UAE) has formally embraced commercial gaming by launching the UAE Lottery – the first in the nation.
The General Commercial Gaming Regulatory Authority (GCGRA), the federal body overseeing the new industry, has awarded a license to The Game LLC to handle the UAE’s first authorised operation.
Operating under the brand name UAE Lottery, the company will introduce different lottery games for the enjoyment of both indigenes and visitors.
This sector has traditionally been frowned upon in the conservative Middle East region. The decision to enter this uncharted territory is a pivotal point for the economic and social landscape of the UAE.
A Commitment to Responsible Gaming
The GCGRA was established in September 2023 to establish a socially responsible and well-regulated gaming environment, ensuring strict adherence to guidelines and the highest standards.
The organisation was tasked with crafting a robust regulatory framework grounded in transparency, accountability and consumer protection.
They also mapped out a comprehensive set of regulations designed to empower players with essential tools and information to make informed decisions around their gaming activities.
Players can set spending limits, access support services and implement self-exclusion periods. These laws aim to promote responsible gaming and safeguard players from potential harm.
Several prominent industry specialists were hired to handle the process, and they have now handed out their first gaming license.
A Boon for the Economy
The economic impact of this regulatory change will be massive. Industry analysts believe the UAE’s expanding gaming sector could generate billions of dollars in revenue annually.
Online casinos will boom in the UAE and remit revenue from gaming profits, licensing fees and transaction taxes. Legitimate online casinos in the UAE with formal licenses will be able to provide indigenes and visitors with on-the-go games to pass the time.
Physical casinos will not be left out. They generate substantial tax revenue through gaming, property and sales taxes. They usually pay higher tax rates on gaming revenue.
The influx of capital is also expected to help boost tourism, create employment opportunities and contribute to the nation’s gross domestic product (GDP).
Wynn Al Marjan set to Lead the Charge
The licensing framework for gaming operators is already in place, but no physical property in the UAE has been granted a gaming license.
However, the Wynn Al Marjan Island is expected to be one of the first properties to secure a casino license under the new regulations.
Wynn’s beachfront resort project will redefine the hospitality industry in the Middle East and North Africa (MENA).
Located on a stunning island in Ras Al Khaimah, Wynn will provide visitors with luxurious getaway scenery and multifaceted entertainment. The resort is poised to welcome indigenes and visitors from around the globe, with over 1,500 gorgeously designed rooms and suites.
The exotic resort opens its gates in 2027, and guests will be able to play their favourite classic casino games there. Other gaming giants are hoping to jump on the UAE bandwagon.
The first lottery license went to an Abu Dhabi-based company, which bodes well for local companies such as Atlantis. They can also act as viable partners to international brands looking for collaborations.
There will be many partnership opportunities with local firms as international operators look to enter the industry. Now-former Atlantis president Tim Kelly declared in 2023 they would be ready for casinos, signalling The Palm would be at the front of the queue for a gaming license.
MGM Resorts Chief Executive Officer and president Bill Hornbuckle announced earlier this year they would pursue a gaming license in Dubai or Abu Dhabi.
Hornbuckle, a former bartender turned resort mogul, also predicted that lottery licenses would be released before digital gaming and vowed to go after one.
Gaming set for a Bright Future in the UAE
The UAE is taking a measured approach towards developing the gaming industry. The solid regulatory foundation will help balance economic growth and social responsibility.
The awarding of a first gaming license to the UAE Lottery is only a baby step in the grand scheme of what is expected to be a carefully managed expansion of the gaming sector as the kingdom pursues innovation and economic diversification.
The road to realising the full potential of the gaming industry will require meticulous planning and execution. There will likely be ongoing adjustments and revisions to ensure that the industry develops in a way that maximises benefits and mitigates risks.
However, the gaming sector is poised to become a vital contributor to the UAE’s prosperity as it embraces new opportunities for economic growth.
