In a groundbreaking development, United Arab Emirates regulators have granted the country’s first lottery license and unveiled detailed casino and gambling regulations. This historic decision puts the UAE on track to become the first Gulf state to validate gambling.

A little bit too late? Maybe, but better late than never. It’s crucial to note that Islam is the nation’s official religion, according to its Constitution. Islam views gambling as a harmful activity, which is why both local and federal emirate laws ban all types of gambling and any advertising related to gaming.

The newly created General Commercial Gaming Regulatory Authority (GCGRA) is set to tackle gambling issues. This authority will oversee the sector and intends to license casinos, poker tables, and slot machines throughout all seven emirates. Even though the first lottery license has been awarded to a local gaming company called The Game, the country has now established a robust system for casino licenses. This move is a clear indicator that physical gambling establishments might soon become a reality.

What Did the Law Say Before this Landmark Move?

UAE laws banned all forms of gambling, and any advertising related to gaming. Factions often debated the legality of gambling and associated ads in many places. However, the focus was usually on issues like protecting children from gambling culture and safeguarding vulnerable people. Religious reasons mostly never surfaced in discussions.

The UAE’s approach was straightforward: with a few exceptions, all gambling and related advertising were unlawful. This included offering online gambling services to UAE residents from abroad. But then, even though the UAE generally banned gambling, the laws allowed running competitions like raffles. Operators only had to seek prior approval from the relevant authorities. Moreover, the UAE Civil Code allowed bets in certain situations. These include shooting, racing, sports, and strength tests. They had to meet the following conditions:

• Prizes had to be certain
• Persons providing the prize had to be known, and
• Details of the competition had to be clear

Adhering to the requirements highlighted in the Civil Code wasn’t straightforward. For instance, operators could only give a prize in a betting contract to the winner, who was the participant who won through their skill and effort. This meant that any arrangement where the prize might go to a third party (in this case, someone not involved in the contest or race) is considered outside the scope of legal gambling. Thus, it fell under the criminal laws that prohibited such activities.

With The GCGRA in Place, the New Development Will Be Groundbreaking

UAE’s GCGRA established a strict regulatory framework to oversee the lottery’s activities. This structure aims to protect participants by ensuring operators conduct lottery games fairly and transparently. GCGRA Vice President Kelvin Mullaly emphasized that they strive to establish and maintain a secure and enjoyable player environment. He added that the government agency seeks to create a safe gaming atmosphere that follows universal best practices.

The UAE Lottery acknowledged that it planned to offer many games to suit different player interests and financial muscles. This new lottery was part of the UAE’s broader effort to expand its entertainment options and economic activities. The country prioritized a regulated gaming platform to attract a diverse audience base, including residents and visitors. It also aimed to offer new opportunities for fun and potential financial gains.

Mullaly also highlighted the value of responsible gaming. The vice president mentioned that this commitment ensures participants enjoy their experience while understanding the associated risks. The GCGRA’s regulations included thorough guidelines on player protection, advertising, and responsible gaming practices.

Practical Solutions to Problem Gambling

The UAE has also implemented strict rules to help ensure responsible gambling. Operators are required to offer cooling-off periods, set deposit limits, and run player education programs. Moreover, GCGRA will conduct regular audits to keep industry standards in check and has established the following rules for players:

• Participants need to only interact with licensed operators. Any dealing with unlicensed ones is against the law and can result in severe penalties. This rule applies to lottery operators as well.
• Players should take advantage of tools offered by operators and the GCGRA to control their gaming activities, including setting limits on money spent and time.
• Gambling establishment operators will set monthly, weekly, and daily deposit limits. They must also establish the maximum amount a participant can deposit and play within a specific duration.
• Online gaming platforms should offer players ‘cooling off periods.’ This feature restricts participants from accessing gaming platforms for at least 72 hours.

These conditions directly address the harmful aspect of gambling that led to the initial ban on gambling and other related advertising in the UAE. 

The First Lottery License To Transform the Middle Eastern Gaming Scene

The specifics of the licensing framework are not yet public, but it marks the beginning of a significant shift in the gambling industry in the Middle East.

UAE’s decision to implement a legal, regulated gambling scene is highly welcome as the industry is expected to generate significant revenue, boost the economy, and fund public services. The regulation also ensures fair play and protects players within the country from fraud and exploitation. Moreover, the GCGRA has implemented measures to promote responsible gambling and reduce the risk of gambling addiction.

The GCGRA will now work on issuing licenses for integrated resorts, starting with Wynn in Ras Al Khaimah, and will create a limited framework for online gambling. From the look of things, the UAE Lottery and other future licensed gaming operators can offer their services to UAE tourists and residents. This move couldn’t come at a better time, considering the years-long dream of transforming this Arab nation into the next Las Vegas.