UAE moves towards legalising gambling with lottery licence award

The UAE has awarded lottery licences for the first time, a move that could pave the way for legalising casinos and other forms of gambling in the country.

The Emirates’ General Commercial Gaming Regulatory Authority (GCGRA) announced that it will be operated by The Game LLC under the banner of UAE Lottery. The company described itself as a “a commercial gaming operator specializing in game development, lottery operations, and gaming-related content,” according to Bloomberg.

This would be the first government-issued license for lotteries, although the country has a history of permitting raffle draws in supermarkets, airports and malls, often featuring prizes worth millions of dollars. Local banks and Dubai Airport’s duty-free also sell raffle tickets. However, the government recently requested some of the largest organisers to suspend these activities.

Jim Murren, chairman of the GCGRA, called the move a “pivotal event,” as reported by Bloomberg. It “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,” he added.

According to Islam, gambling, referred to as maisir and qimar in the Qur’an, is forbidden. Most countries where Islamic Sharia is the main or sole basis of legislation forbid any games that constitute “games of chance”. However, some Muslim majority countries, such as Egypt, which has the most casinos of any country in the Middle East and North Africa, interpret this as being down to the individual.

Over the past year, Emirati authorities have created a federal body to regulate gaming. This came after Las Vegas-based Wynn Resorts Ltd., which is currently building a $3.9 billion gaming resort in the emirate of Ras al-Khaimah, said it will obtain a licence “soon”.

Legalising gambling could be hugely lucrative for the UAE, which is seeing increased competition for tourists from neighbours such as Saudi Arabia.  The move would not only draw in more tourists, but also potential investment from China, as well as generating estimated revenue from gaming equivalent to 1.3% of gross domestic product for the UAE, according to Bloomberg.