The United Arab Emirates (UAE) has issued its first-ever lottery licence, hinting at a potential shift towards the legalisation of casinos and other forms of gaming. This development is seen as a major stride in the country’s gaming industry.
The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) announced that a company named The Game LLC has been granted the privilege to operate under the UAE Lottery banner. The Game LLC, a commercial gaming operator, specialises in game development, lottery operations, and gaming-related content. Although the GCGRA has not specified when the lottery will commence or its format, the anticipation is very exciting for the industry.
Is this a signal toward legalised gaming in the UAE?
The Game LLC, a privately held company based in Abu Dhabi, has yet to comment on this development. However, this move is seen as a pivotal event by Jim Murren, the chairman of the GCGRA. In his statement, Murren stated that this development not only establishes a disciplined, world-class regulatory framework for lottery activities but also underscores the UAE’s commitment to fostering a secure and enriched commercial gaming environment.
The legalisation of gambling could be a game-changer for the UAE, where Islamic or Shariah law, which prohibits gambling, forms the basis of legislation. However, over the past year, authorities have taken steps to regulate gaming at the federal level. This move followed the announcement by Wynn Resorts Ltd., which is constructing a $3.9 billion gaming resort in the emirate of Ras al Khaimah, that it expects to obtain a license soon.
According to Bloomberg Intelligence, legalising gambling could attract more tourists and investment from China and generate gaming revenue equivalent to 1.3 percent of the UAE’s gross domestic product. This figure, estimated at roughly $6.6 billion, would surpass that of Singapore.
The GCGRA has declared that gaming companies can apply to operate in all seven of the UAE’s emirates. Abu Dhabi and Ras Al Khaimah are leading the race to introduce casinos before Dubai, which has put any immediate plans to allow gambling on hold.
This development marks a significant shift in the UAE’s approach to gaming and could potentially reshape the country’s tourism and entertainment landscape.
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