United Arab Emirates to Start Issuing Gambling Licenses

• Rich Caesar
• December 4, 2023

UAE is establishing a regulatory body GCGRA, composed of experts from the United States, that is to create a regulatory framework for a national lottery and commercial gaming. Wynn Resorts already has plans for a 1,000-room luxury hotel with gaming facilities.

The United Arab Emirates (UAE) is on the brink of a significant shift in its stance towards gambling. The country, known for its adherence to Islamic law, which traditionally forbids such activities, has announced the establishment of a new regulatory body to oversee commercial gaming. This move signals a potential change in the legal status of gambling in the UAE.

The newly formed regulatory body, known as the General Commercial Gaming Regulatory Authority (GCGRA), is composed of casino and gambling experts from the United States. The GCGRA’s mission is to create a regulatory framework for a national lottery and commercial gaming, according to Emirati state media WAM. The aim is to unlock the economic potential of commercial gaming responsibly.

Industry veterans Kevin Mullally and Jim Murren have been appointed to key roles as CEO and chair respectively in the GCGRA. Both executives bring a wealth of experience to the table, with a combined 32 years in the gambling industry. Mullally, the former CEO of MGM Resorts International, and Murren, who held various positions at Gaming Laboratories International, are expected to establish a robust regulatory body and framework for the UAE’s lottery and gaming industry.

The UAE’s move towards legalizing gambling is seen as a strategic decision to boost its tourism industry and diversify its traditionally oil-based economy. With its glitzy luxury resorts and world-renowned horse racing industry, the UAE might soon have a new card to play in attracting visitors – gambling.

Last year, casino operator Wynn Resorts announced a deal to build a luxury resort in Ras Al Khaimah in the UAE, a 1,000-room luxury hotel, complete with a “gaming area”. This hotel, known as Wynn Marjan, is set to open in 2026 and will feature a variety of amenities including 10 restaurants and lounges, a spa, a convention facility, shopping venues, and a gaming area. While the statement did not elaborate on whether gambling would be involved, the resort expects to have a license for gaming operations in Ras Al Khaimah imminently.

The resort could be the first legal gaming venue in the Arabian Gulf. The announcement came in tandem with a statement from the Ras al-Khaimah Tourism Development Authority introducing a new division, called the Department of Entertainment and Gaming Regulation, which will regulate “integrated resorts” that include hotel operations, entertainment spaces, restaurants, spas, retail shops, convention areas, and “gaming”.

Wynn Resorts CEO Craig Billings has made several statements about the project. He mentioned that the company expects to publicly share plans and renderings of the UAE-integrated resort early next year, confirming that a casino will be a part of those efforts. He also stated that the group is putting a tremendous amount of its time and focus into the UAE project, adding that it is a very high return opportunity for them.

The specifics regarding the issuance of licenses, their cost, and the requirements are yet to be disclosed. Given that the UAE is still in the early stages of this transition, these details are expected to be released in due course as the newly formed regulatory body decides on what’s the best course of action.

Global casino company Caesars Entertainment, which has operated a non-gambling hotel in Dubai since 2018, could potentially be interested in this new development, but the company seemingly made the wrong decision to exit the UAE market just two months ago.

Caesars Entertainment operated a non-gambling hotel in Dubai since 2018, known as Caesars Palace. This hotel was located on the man-made Bluewaters Island, a development owned by the Dubai-based holdings firm Meraas. However, it was announced in September 2023 that Caesars Palace would leave Dubai and the property would be rebranded as a Banyan Tree resort in November. When Caesars Palace opened in Dubai in 2018, there was an expectation that the UAE might ultimately allow gaming. Caesars Entertainment CEO Thomas Reeg mentioned during an earnings call in 2022 that the original thought when Caesars struck the deal in Dubai was that maybe the UAE would have gaming. He stated that if there’s an opportunity, people should expect that Caesars would be actively interested.

With the recent developments in the UAE’s stance towards gambling, it seems that Caesars Entertainment is indeed interested in the emerging opportunity. Anthony Costa, regional president at Caesars Palace, has stated that the acceptance now that there is going to be the potential of gaming in the UAE, in whatever form it’s going to be, any global gaming company is going to want to be actively involved in the conversation.

So, while Caesars Palace has exited Dubai for now, it seems that Caesars Entertainment is keeping a close eye on the situation and may indeed have a frontrunner spot for the expansion of the UAE into gambling.

In conclusion, while it’s still early days, the UAE’s decision to establish a regulatory body for gambling indicates a significant shift in its stance towards the industry. Whether the UAE will become a new gambling mecca like Las Vegas or Macau remains to be seen, but the signs are promising.

The current prohibition of gambling in the UAE is not limited to Muslims only, but applies to everyone, regardless of their religion or nationality. This is because the laws in the UAE are based on Islamic principles, which prohibit gambling, and these laws apply to all individuals within the country’s borders, including foreigners.

However, with the establishment of the General Commercial Gaming Regulatory Authority (GCGRA), the UAE is moving towards legalizing commercial gaming. This suggests that in the future, the visitors might be able to participate in regulated gambling activities, including those in casino resorts, while Muslims still have to adhere to the rules of their religion that doesn’t allow them to gamble. The specifics of these regulations, including who will be allowed to gamble, are yet to be disclosed, but it is expected that the stance will become more lenient in order to allow foreigners to gamble.