The UAE has set the stage for an exciting new era in the gaming world by establishing the General Commercial Gaming Regulatory Authority (GCGRA) last year. After a period of anticipation, the GCGRA has now launched its new website and revealed details of the first GCGRA licensee, the operator of the UAE national lottery (see The Game LLC, based in Abu Dhabi). This milestone marks a major step forward for the UAE as it becomes the first GCC country to embrace lawful commercial gaming. Here’s a breakdown of what this means for players, operators, and everyone in between.
The Highlights
Definition: In the GCGRA’s own words, Commercial Gaming is “any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items” and “extends to agreements within such games that stipulate the loser must compensate the winner with money or any other item of value. Commercial games encompass gaming machines, internet gaming, electronic skill-based games, lottery games, event wagering (including bets placed on certain events such as sporting events, or horse racing), along with any other form of commercial gaming regulated and licensed by the GCGRA”.
Streamlined Licensing: The GCGRA provides a Licensing Guide outlining the types of licenses available, the conditions for securing them, and the application process. The licensing categories are:
- Gaming Operators: Those running internet gaming platforms, sports wagering, land-based gaming facilities, and lotteries.
- Gaming-Related Vendors: Suppliers of gaming equipment or related services.
- Key Person Corporate: Entities holding decision-making power within the ownership structure of licensees.
- Key Person Individual: Individuals in executive roles within licensed entities.
- Gaming Employee: Employees working for or connected with licensed entities.
Responsible Gaming: Responsible gaming is a core principle of its GCGRA framework. Operators are required to implement robust responsible gaming programs that include player protection measures, self-exclusion options, and educational resources.
Advertising Standards: The GCGRA has set out the advertising standards for commercial gaming, covering general restrictions, guidelines for advertising to minors, promotional marketing rules, opt-out options for targeted ads, and specific standards for various channels like TV, radio, websites, streaming platforms, sponsorships, and social media. There’s also a strict rule against using Arabic in advertising unless specifically permitted by the GCGRA.
Across All Emirates: The license application form is inclusive of all seven Emirates, suggesting that commercial gaming could extend well beyond Ras Al Khaimah, Abu Dhabi, and Dubai, reaching the entire UAE.
Navigating the Legal Landscape
While the GCGRA’s progress is impressive, there’s still some uncertainty about how the new licensing framework will align with existing UAE laws that broadly prohibit gambling. This is a fantastic opportunity for UAE legislators to modernize these laws. As these changes unfold, the legal landscape will become clearer, paving the way for a well-regulated and thriving gaming industry.
With the GCGRA’s framework in place and potential legislative changes ahead, the outlook for gaming in the UAE looks incredibly promising. For those in the gaming industry, from operators to vendors, understanding the new regulations is crucial. Partner with M&CO to navigate this groundbreaking shift and unlock new opportunities in the UAE’s gaming industry.
Disclaimer
This publication does not provide any legal advice and it is for information purposes only. You should not rely upon the material or information in this publication as a basis for making any business, legal or other decisions. Therefore, any reliance on such material is strictly at your own risk.
Author: Shahana Saud (Principal Associate)
