UAE awards 1st lottery license, potentially paving way for casinos

The United Arab Emirates has taken a significant step toward legalizing casinos and other forms of gaming by awarding its first lottery license. This landmark decision could mark a transformative shift in the country’s approach to commercial gaming.

License details

The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) has granted the license to The Game LLC, a company described as a “commercial gaming operator specializing in game development, lottery operations, and gaming-related content.” The company will operate under the UAE Lottery banner.

While the GCGRA did not specify when the lottery would commence or its format, The Game LLC, based in Abu Dhabi, has yet to comment on the development.

Regulatory framework

Jim Murren, chairman of the GCGRA, hailed the move as a “pivotal event” in the regulator’s statement. He emphasized that this step “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.”

Impact on legislation, society

Introducing gambling would be a significant departure for the UAE, where Islamic, or Shariah law, forms the foundation of legislation and prohibits such practices. However, over the past year, the UAE has taken steps to regulate gaming at the federal level. This follows Wynn Resorts’ announcement of a $3.9 billion gaming resort in Ras al-Khaimah, with expectations of obtaining a gaming license soon.

Legalizing gambling could attract more tourists and investment, particularly from China, and generate gaming revenue equivalent to 1.3% of the UAE’s gross domestic product. According to Bloomberg Intelligence, this could amount to approximately $6.6 billion, surpassing Singapore’s gaming revenue.