ABU DHABI: The United Arab Emirates has awarded a lottery license for the first time, potentially taking another step towards legalising casinos and other kinds of gaming.
The UAE’s general commercial gaming regulatory authority said a firm called The Game LLC will operate under the banner of the UAE Lottery. The company, it said, is a “a commercial gaming operator specialising in game development, lottery operations, and gaming-related content.”
GCGRA didn’t say when the lottery is likely to start or in what form. The Game, whose website says it’s based in Abu Dhabi and privately held, didn’t immediately respond to a request for comment.
Allowing gambling would be a step change for the UAE where Islamic, or Shariah law, is the main basis for legislation. The practice is prohibited under Islam and is illegal in the country.
Over the past year, though, authorities have established a federal body to regulate gaming. That came soon after Wynn Resorts Ltd, which is building a US$3.9 billion gaming resort in the emirate of Ras al Khaimah, said it expects to “soon” obtain a license.
This week’s move is a “pivotal event,” Jim Murren, chairman of the GCGRA, said in the regulator’s statement. 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.”
Legalising gambling could draw in more tourists and investment from China and generate gaming revenue equivalent to 1.3% of gross domestic product for the UAE, according to Bloomberg Intelligence.
At roughly US$6.6 billion, that would surpass the figure for Singapore, BI analysts calculate.
The GCGRA said gaming companies can apply to operate in all seven of the UAE’s emirates.
Abu Dhabi and Ras Al Khaimah have emerged as frontrunners to introduce casinos before neighbouring Dubai, after the glitzier city-state put any immediate plans to allow gambling on the backburner, people familiar with the matter told Bloomberg News late last year.
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