-
Casinos for you
UAE Sets Up Federal Gambling Watchdog Led by US Industry Experts
By Jeff Osienya Sep 06, 2023 IndustryIn another calculated move seemingly towards the debut of regulated gambling, the United Arab Emirates has formed a new gambling regulator. What does this mean going forward, especially given that gambling is still illegal in the Middle Eastern country?The United Arab Emirates (UAE) has taken significant strides geared towards making entry into the lucrative gambling industry. The Middle Eastern powerhouse recently unveiled a gambling regulatory body named the ‘General Commercial Gaming Regulatory Authority (GCGRA).
However, given that gambling is prohibited in this country, it is pretty interesting that an oversight body is being created to govern this activity. Thus, the move has got tongues wagging, with many broaching up the possibility that there may be room for potential gambling licenses to be issued in the UAE. While it may be too soon to tell, industry insiders are speculating that this move is one of the most significant indications yet that the gambling situation in the UAE is about to change.
According to state-run WAM news agency, the GCGRA will primarily be mandated to
Quote“…coordinate regulatory activities, manage licensing, and facilitate unlocking the economic potential of commercial gaming.”
However, the statement from the media house did not clarify whether the ‘gaming’ term referred to would represent gambling. So, as things stand, it is still pretty unclear what the regulations will look like and precisely what forms of gambling the UAE will permit, if there is even such a consideration in place.
UAE Taps into to Top Talent From USA's Gambling Sector
Some prominent US gambling industry experts are coming in to lead this regulatory body. Jim Murren, the former American Gaming Association (AGA) chairman, has been appointed chairman of GCRA’s board of directors. Murren has also previously served as the chairman and CEO of global gaming powerhouse MGM Resorts International.
Further, Kevin Mullally, the former executive director of the Missouri Gaming Commission, famed for overseeing riverboat casinos across the US, joins as the regulator at the helm as CEO. In a statement by WAM, Mr. Mullally expressed delight and excitement about his new role. He said:
Quote“I am delighted to have been appointed as the inaugural CEO of the GCGRA. I look forward to establishing a robust regulatory body and framework for the UAE’s lottery and gaming industry.”
Additionally, following Mullally’s appointment as the CEO, Murren opined,
Quote“I am delighted at the appointment of Kevin Mullally. He brings unparalleled category experience and will be invaluable in creating a fit-for-purpose regulatory framework for the UAE.”
Murren has an impressive resume, including experience with stakeholders from the Middle East. During his tenure as the MGM Resorts International chairman, his organization constructed the single biggest development on the Las Vegas strip, which cost a whopping $9.2 billion. The said Las Vegas city center partnership involved MGM Resorts International and Dubai World.
Moreover, Murren’s experience extends to heading Nevada’s COVID-19 response, which involved helping out the state using UAE-donated and Chinese-donated kits. At the time, the involvement of the Chinese amid the apparent geo-political tensions that have always existed between the two countries threatened to scamper this arrangement.
Is Regulated Casino Gaming Coming to the UAE?
There are rumblings in the Arabian gambling scene indicating that the issuance of the first casino license in the UAE may be imminent. Craig Billings, the CEO of Wynn Resorts, hinted as much, especially seeing that the company’s planned casino resort in Ras Al Khaimah is set to become the only such establishment in the UAE.
The planned Al Marjan Casino, which broke ground recently, is scheduled to be completed by 2027. Wynn holds a minority stake of about 40% in the venture, with the remaining percentage taken up by Wynn’s local UAE partners. The construction of this one-of-a-kind casino may be one of the reasons for the formation of GCGRA, as this body may be one to issue the gambling license to Al Marjan Casino.
That said, many question marks linger on how this will work out exactly after the $3.9 billion casino establishment is complete. Speaking during Wynn’s second-quarter earnings call last month, Billings expressed hope that casino licenses will be issued soon in the UAE. He said:
Quote“We have everything we need to operate gaming in Al Marjan. So while there may be conversation in other Emirates about legalization or legalization at the federal level, thereby covering all Emirates, I expect that we will have our license for Ras Al Khaimah actually imminently.”
The creation of the GCGRA may be an indication that Abu Dhabi may oversee all the gambling operations of the country, seeing as it is the country’s capital city. That said, in the UAE, the federation of seven sheikhdoms grants total powers to the local rulers of the seven Emirates, especially when it comes to social concerns. Given that gambling falls into this category, it may come down to the local rulers of each Emirate to determine whether gambling has a chance in the Middle Eastern country.
The Gambling Situation in the Middle East
Casinos are still relatively rare and highly frowned upon in the Middle East. This has a lot to do with the fact that Islam, the prevalent religion in the region, does not permit any form of gambling. Be that as it may, some casinos are still in operation in Egypt and Lebanon.
Additionally, the prospect of the tourism boom that the UAE could receive, alongside the billions the industry could generate, is undoubtedly the driving force behind calls to issue casino licenses in the country. According to Bloomberg, the UAE gambling market could bring in up to $6.6 billion in gaming revenue, an astronomical figure that could potentially surpass what is being earned by another global powerhouse in Singapore.
As things stand, though, according to the UAE federal law, if you are found to engage in any form of gambling within the UAE boundaries, you will then you will be in hot soup. Offenders are subject to two years in prison and an AED 50,000 (~$13,600) fine.
You might also like