The United Arab Emirates (UAE) is a unique nation. Beyond the wealth, world’s tallest structures and world’s largest shopping mall is a nation that balances contemporary innovation with tradition, bringing in tourists from all over the world yet remaining strict in its compliance with Islamic teachings.
As such, the majority of forms of gambling were, for a long time, illegal in the UAE. However, that changed in July when the General Commercial Gaming Regulatory Authority (GCGRA) awarded Momentum subsidiary The Game LLC the licence to operate the UAE Lottery, the first legal lottery of its kind in the UAE.
The GCGRA was formed in September 2023, following Wynn’s announcement of plans to build a casino-hotel in the UAE. The GCGRA is currently chaired by Ex-MGM Chairman and CEO Jim Murren with ex-VP of Government Relations and General Counsel for Gaming Laboratories Kevin Mullally acting as CEO; two execs with extensive industry history, especially Murren, with his experience operating MGM’s land-based casinos in the US and Macau.
The property, Wynn Al Marjan Island, is set to open its doors in early 2027, with concept art of the property showing a tall, futuristic golden exterior overshadowing the below greenery and surrounding man-made island. In October, Wynn received its gaming licence from GCGRA – the effective green light for casinogaming in the nation.
But is the UAE set to be the next desert getaway for casino enthusiasts, or could something else be in store?
Casino licences in the UAE
While Wynn may have been the first, it is not the only operator at the table. In September, MGM CEO Bill Hornbuckle confirmed that it had applied for a UAE casino licence, though as of writing the status of this application has not yet been confirmed.
Where one major operator goes, another is likely to follow, and if there is one thing to know about the UAE, it does not do things by half measures. If it is going to have casinos, they will be opulent, and it is unlikely there will be just one. As IGA Group Director Mario Fiorini explained, the clientele of these casinos will likely be wealthy, a quality-over-quantity approach when it comes to spending. Comparing the UAE to Thailand, another emerging market (that you can read more about later in this issue), he said: “Thailand will get way more quantity, more occasionally people spending $100,000. When you’re looking at the UAE, you are going to be looking most likely at individials spending millions.”
High rollers are a pillar of financial security for casinos across the globe and. in the UAE, the ratio of high to low rollers is likely to reflect the nation’s wealth.UAE vs Macau: A threat in Asia?
According to Fiorini, the UAE has also positioned itself to be a direct competitor to Macau. With the expected luxury of its land-based offerings, combined with its ease of access for travel, Macau may find itself under threat from a UAE gambling hub.
He said: “It’s going to be a big hit for Macau. It’s going to suddenly have all this competition coming in from new places. And, you know, the UAE has the money to make big spectacles.” He also noted that travel will play a big part in decision making for gambling tourists – whether the commute is easier to Macau or the UAE may be a deciding factor. As Fiorino explained, “Dubai is becoming an internatinal hub.”
However, while it may pose a challenge to Macau’s gaming market, there are some unique factors about the territory that must be considered.
Culture vs casinos: Gambling in the UAE
The UAE is a Muslim country, with major holidays in the nation including Eid al-Fitr. Gambling is forbidden by the Quran, which in turn has made gambling illegal in the UAE; at least, until the formation of the GCGRA and the licence awarded to Wynn. So, even if it becomes legal (at certain properties), how popular will gambling be in a country whose primary religion forbids it?
Firstly, the UAE is unique in the fact that its native population, Emiratis, make up less than 15% of the overall population. For the most part, citizens in the UAE are expats, coming to the nation from countries across the globe. A large percentage of this expat population are people from South Asia; Indian, Bangladesh, Pakistan and so on, as well as the Philippines, Egypt and the rest of the world. There is a chance the GCGRA may officially state that gambling is only for the non-local population.
Secondly, the UAE has been putting significant effort in recent decades into diversifying its revenue streams. The nation was founded on oil and gas, which remains a significant stream of income for the nation; but as we all know, this oil is finite. Eventually the oil will run out, and when it does, the UAE will need a financial back-up. Tourism has been on the rise in the UAE over the last 20 years, with a 2023 study by the United Arab Emirates Ministry of Economy finding that travel and tourism contributed 11% of the nation’s annual GDP, totalling AED 220bn ($59.9bn) - up from 9% GDP and AED 167bn in 2022. Of this, 24.1% came from domestic tourism, while the remaining 75.9% came from international tourism.
Of the AED 220bn tourism value, AED 43.5bn was generated in revenue by hotel establishments in 2023, with 97 million guest nights reported that year. All that is to say, hotels are a significant part of the UAE’s financial plan, whether they host gambling or not, making high value hotel properties something of interest for the nation’s revenue plans.
With over 28 million guests occupying the UAE’s 210,000+ hotel rooms across 2023, the tourist market is far from small. Combined with accessibility to gaming facilities for non-Muslim expats, and the casino gaming sector might just have a sizeable market in the UAE. Moreover, despite its strict rules, the UAE has gradually begun to become liberal, suggesting that perceptions on gambling for locals may be changing too, atleast in certain areas. Fiorini adds: “Within segregated areas, it’s as if you are not in the UAE... Culture is changing within certain designated zones.”
Of course, with no casinos yet in operation, the make-up of clientele and its popularity is unclear. Though, the UAE’s first legalised gambling venture may provide some insights on what to expect.
The UAE Lottery
The GCGRA granted its first licence for an authorised lottery operation in July 2024. The UAE Lottery is to be operated by licence grantee The Game LLC, a subsidiary of Abu Dhabi-based business Momentum. Lotteries have existed in the UAE to some capacity in the past, primarily in the form of charity lotteries. These, however, did not follow the typical format of buying a lottery ticket or scratch card. As such, non-charity lotteries will provide a way for the UAE to dip its toes into the gaming market water to see how the public reacts. However, aside from the lottery and land-based casinos, what else can we expect from the UAE?
What verticals are on the table?
According to the GCGRA website, it ‘has a mandate to regulate and oversee all commercial gaming activities in the UAE, which include lottery, internet gaming, sports wagering and land-based integrated gaming facilities or resorts.’ That perhaps suggests a future launch of iGaming and sports betting is not completely off the table.
Gambling Insider explores the UAE’s connection to esports later in this issue, though across the UAE, sport plays a significant factor. With the Dubai World Cup horseracing tournament, traditional camel racing and billions spent on a range of global sports teams (Abu Dhabi-based Abu Dhabi United Group is the owner of Manchester City, for example), sports betting has the potential to be profitable in the UAE. However, it is the nation’s iGaming market that is being touted as having real potential – possibly even posing a challenge against Malta.
UAE iGaming: A new frontier
With Wynn already setting its anchor in the UAE, for global industry players, the nation has been showing promise; something reflected on by BettingJobs CEO Jennifer Innes. “Dubai is a really attractive location,” she tells us. “It’s far easier at this moment in time to ask someone to relocate to the UAE than it is to Malta; the volume of applications we would have for roles in the UAE far outweigh that of Malta, for example.”
Such a remark should be one that puts into perspective just how many heads are turned to the UAE – when Malta, the iGaming industry capital, is losing out on staff. Indeed, “after lottery, it will be online gaming that licences in the UAE. In addition, there has been recent changes meaning that there will now be two licences granted per Emirate - one land based, such as The Wynn in RAK, and one online.” says Innes. “As well as that, if you layer on a lot of African-facing companies, you have to fly through Dubai to get to Kenya or the DRC. It’s far easier to ask someone to relocate to Dubai with their family than it is to ask them to relocate to the DRC or Nigeria or Kenya. There are even other impacting factors, like the war in Ukraine. A lot of individuals, Russians, Ukrainians, have also chosen to move to the UAE for safety and stability.Then there’s Europeans, Canadians, Indian and Filipino nationals that go there because, well, I guess it’s another frontier, isn’t it?”
For Innes, the UAE is an opportunity to be a part of an industry in its infancy. While she was clear that the casino front of the market would be focused around Abu Dhabi, Dubai holds particular interest for African, Asian and Indian facing brands, due to the region’s diverse population. If the UAE launches iGaming, meanwhile, it will be a step ahead of the land-based only Macau...
“Parimatch are growing. They’ve relocated and have an office there,” Innes says. “Pragmatic Play, they now have a commercial office there and they’re actively looking to move a lot of their commercial from Malta so they can facilitate the greater Gulf region, and India, Pakistan and Bangladesh. I think what we’ll see as the region matures is more of the larger gaming companies looking to open up. At the moment, it’s just so much in its infancy.”
Concluding thoughts
As Innes stated, the market in the UAE is still in its infancy. A lottery, experienced authority and in development casino-hotel is not that much to go on when predicting the value of the market, but if the interest from other operators like MGM and the Government’s push for tourism GDP is anything to go by, it is likely the UAE will not stop at just one casino-hotel.
When asked if the UAE has the potential to be something akin to the Vegas of the Middle East, Fiorini concluded: “I think a lot of businesses should be looking close to the UAE because, of course, I believe there is going to be huge room for expansion... But yes, I believe [the UAE] will become a new Las Vegas.”
