Regulators in the United Arab Emirates approved the first license for a lottery on Sunday, and made public its casino and gambling regulations – a major step towards the Arab state being the first in the Gulf to allow legalized gaming.
The General Commercial Gaming Regulatory Authority (GCGRA) website had previously been password-protected. It now lays out the future of gaming in the UAE: From issuing casino licenses to plans for slot machines and poker tables.
The form used to apply for a gaming license allows applicants to choose from all seven emirates, suggesting gaming could extend across the sheikdoms and beyond just 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 Sunday.
A representative from GCGRA did not immediately respond to a request for comment.
What Will Gaming Look Like?
In GCGRA’s own words on its 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.”
GCGRA says it will regulate lotteries, internet gaming, sports wagering and land-based gaming facilities. Regulated games at those facilities would include slots, roulette, blackjack, baccarat, craps, and more.
If it grants a sports betting license, that would open for the door for the return of Caesars, which left Dubai in late 2023.
Internet gaming includes bingo, casino games (slots, roulette, blackjack, baccarat, craps, and poker), eSports, fantasy games, peer-to-peer games, skill-based games, sports, and more.
Does Anyone Have a License Yet?
Only one license has been approved: The lottery license on Sunday was awarded to The Game LLC, a commercial gaming operator specializing in game development, lottery operations, and gaming-related content. Operating under the banner of the ‘UAE Lottery’, it is the only company with a license to offer gaming in any form right now.
This means that long-standing lottery operators in the UAE, like Mahzooz and Big Ticket, cannot legally offer their services.
Will There Be Casinos?
The licensing framework for gaming operators is up and running, meaning yes, but no property in the UAE has been publicly granted a gaming license.
Businesses with a gaming license will be audited every two years by the GCGRA.
The GCGRA says: “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.”
Each business with a license to facilitate gaming will appoint a key person for the “implementation and maintenance of the Socially Responsible Gaming efforts.”
Additionally, gaming operators must have a “qualifying domestic entity” or QDE in the UAE or have a relationship with one. A QDE is defined by GCGRA as any UAE company with “substantial business operations in the jurisdiction.”
Where Might We See Casinos?
Wynn Al Marjan Island is expected to be the first to receive a gaming license, even with its expected 2027 opening date. Other contenders are similar mega resorts such as Atlantis Dubai and the upcoming MGM Dubai, which is being built.
Earlier this year, a person close to the GCGRA told Skift that the UAE is building a “world class” gaming industry, which would indicate more than one casino is likely.
Wynn Resorts may manage other hotel brands in the region. In a first for Wynn, RAK Hospitality is paying Wynn “for what it knows,” akin to a hotel management agreement. This agreement could give Wynn the room to manage an entire portfolio of hotels on the island, bringing to life the “Arabian Strip.”
On this topic, Wynn CEO Craig Billings said in the April 2023 webcast that Wynn is looking at opportunities for additional developments around the Wynn. He said: “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.”
There is also potential for Encore sister hotel – similar to Wynn and Encore in Las Vegas – since Wynn Resorts has registered the ‘Encore Marjan Island’ trademark, along with a trademark for “Marjan Strip.”
Market Potential
According to analysts at CBRE, casinos in the UAE could one day generate as much as $8.5 billion in revenue. That assumes Wynn is one of a handful of casinos to open across the UAE.
CBRE director of equity research John Decree said in a report: “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.”
His report added: “Wynn Al Marjan Island should generate strong returns, high property margins, and a greater non-gaming mix than Macau and even potentially Singapore integrated resorts.”
What Are The Laws for Players?
Here are the rules for players, published by the GCGRA:
- Playing with licensed gaming operators only
Engaging with unlicensed gaming operators, including lottery operators, is illegal in the UAE and may expose players to severe penalties. - Staying informed
Players should ensure they have all the necessary information regarding the games they play, including the odds of winning and the risks involved. - Managing Time and Money proactively
Utilising all the tools provided by operators and the GCGRA to set their own limits on the amount of time and money they spend on gaming. - Taking advantage of available support
Players should familiarise themselves with available support services and information provided by the GCGRA, our licensees and responsible gaming (RG) partners in the UAE to anyone facing difficulties with their gaming behavior. - Voluntary Self-Exclusion
Players who feel they need a break from gaming, may consider self-exclusion programs offered by operators as part of their RG obligations in the UAE. This tool allows them to take control and initiate periodic short or long-term breaks from gaming activities.
Player management tools will also be put in place. Including a limit on how much people can gamble with.
“A deposit limit shall be offered on a daily, weekly, and monthly basis and shall specify the maximum amount of money a pláyer may deposit into their player’s account during a particular period of time.”
Cooling Off Periods
One big stipulation is what the GCGRA is calling “cooling off periods.” This applies to online gaming only and means operators must cut communications to a player if they request it.
“Each operator shall enable a player to restrict themselves from a licensed operator’s online gaming platform for a period of time the player specifies, which must not be less than seventy-two (72) hours, by submitting a request to the operator through its Internet Website or Mobile Application with the operator’s customer support team.”