UAE awards first lottery licence, in move towards legalised gambling

The United Arab Emirates has awarded its first-ever lottery licence through its newly established agency for regulating “commercial gaming”, marking a step toward potential legalised gambling.

Gambling is illegal in Gulf countries and rare across Muslim-majority nations that base their legal systems on Islamic law, which prohibits gambling.

UAE’s General Commercial Gaming Regulatory Authority (GCGRA) awarded the licence to a company called The Game LLC, according to the authority’s press release.

The Game describes its mission on its website as providing “safe and responsible lottery experiences designed to excite and entertain the UAE’s residents and visitors”.

“Operating under the banner of the ‘UAE Lottery’, the GCGRA’s first licensee will offer a diverse range of lottery games and other games designed to cater to players’ variety of interests and financial preferences,” the GCGRA press release said.

Raffle draws were previously allowed in UAE supermarkets and airports, but earlier this year, big operators put their draws on pause in compliance with the GCGRA framework, leading to speculations of a national lottery.

Some Nordic countries have state monopolies on gambling, but countries across Europe – as well as US states – are adopting a licencing system.

GCGRA was established in September last year with US industry veterans in its leadership. CEO Kevin Mullaly was executive director of Missouri’s gaming commission, and Jim Murren was chairman of MGM Resorts International.

The authority’s establishment came after the Ras al-Khaimah emirate’s $4bn deal with Las Vegas-based casino giant, Wynn Resorts. According to Bloomberg, GCGRA said that gaming companies can apply for licences in all seven of the UAE’s emirates.

Wynn Resorts told Reuters that four percent of its operations will be dedicated to gaming, although Emirati authorities have refused to call it gambling, which remains illegal.

UAE’s pivot highlights its continued efforts to enhance its travel and tourism industry, which make up nine percent of its GDP.

Bloomberg analysts estimate if the UAE has gaming as 1.6 percent of its GDP, like Singapore has, the wealthy Gulf country would bring in $6.6nb per year.

The UAE has been building a progressive international image, but organisations such as Human Rights Watch and Amnesty International have also expressed concerns. Migrant workers in the UAE are subject to a sponsorship system that ties their visas to their employers, exposing them to labour abuses including extreme heat exposure.