The future of gaming in the UAE economy

(MENAFN)

The UAE is a corner of the world that is currently undergoing seismic economic and social change. While many will look at the integration of investment funds with global brands, or the burgeoning tourist industry, we will turn our attention to something rather different. For many years past religious conservatism has resulted in all forms of gameplay in which money can be wagered and won being illegal. The fascinating thing is how and why this is now changing in 2024.

What’s happening to UAE gaming?

There is currently something of a liberal progressive shift in many aspects of the local culture, and it’s a shift that is taking gaming with it. To avoid the risk of overstating the change, we should make it clear from the outset that we are not going to see a rapid move to completely free-to-run gambling operations. Not only would this cause too much cultural friction, but it would also fail to achieve the core economic and business goals of the shift.

The economic outlook in the UAE remains highly positive as a result of this forward-thinking approach. By integrating a degree of Western values and forms of entertainment with the rich culture and tradition of the local region, the leaders of the UAE are looking to the future. Their goal is to move beyond the current infrastructure and significantly diversify to secure the economic future of the country. Given the continued instability in both global security and global energy prices, this is certainly a pragmatic course to take.

Is this shift unique to gaming?

No, is the short answer. The cultural shifts in the UAE extend to areas as seemingly disconnected and separate as changes in the way people work. The pandemic enforcing social distancing and the rapid proliferation of remote work and hybrid models certainly came to the UAE. This is just one way in which a younger generation — supported and guided by an increasingly progressive leadership — has embraced ideas from outside their own borders. When you put it like that, it becomes almost inevitable that there would eventually be a shift in the decades-old prohibition on paid gambling and gaming. The key point of focus then becomes how this is being implemented and executed in a way that still aligns with the wider religious culture.

The path to a comprehensive framework

The UAE is currently putting billions of dollars into building a full legal framework that will support, guide, and restrain the new gambling industry. A central body — the General Commercial Gaming Regulatory Authority (GCGRA) — was established in September 2023 by Abu Dhabi’s Federal Law and has the power to oversee gambling, casinos, and lotteries. It will also be the sole body responsible for issuing and granting the gaming licenses that will allow new businesses and ventures to operate legally. This is a significant step forward because it shows that the state itself is backing the shift to a more open approach to gambling.

Far from being a mere talking shop or point on the horizon, the GCGRA has already granted legal authority to The GAME LLC. As a respected offshoot of Abu Dhabi-based Momentum, they have been granted permission to run a legal lottery in the UAE. Certainly an exciting development for those other business leaders and iGaming developers who are watching expectantly from the sidelines. The process has been generally smooth, always fully transparent, and designed to empower businesses to move into a new sector with the potential for sizable sustainable growth. Now that a lottery is operational, the natural next step speaks for itself.

Playing in-person at new casinos

The business leaders behind Wynn Resorts are currently developing fully integrated resorts that will be situated on Ras Al Khaimah’s Marjan Island. This incredible $3.9 billion investment is due to be open for business as soon as 2027 and will serve as a hub for high-end VIP gaming in the wider region. Not only will it provide a proof of concept and a clear demonstration that the UAE is open for business, it will also drive innovation in the industry.

Once entrepreneurs and investors see the potential becoming reality they will no doubt want to follow suit. Seeing someone go before you and prove the concept allows you to learn from their experiences, fine-tune your own offering, and then develop even faster. This is precisely what happened in other gambling hotspots like Las Vegas in the US and Macau in China. Having the same level of injection of innovation, investment, and ideation in the UAE is essential for the region to continue to grow. Fortunately, the first resort that has been planned brings with it a wide range of diverse economic drivers that will help shape the growth trajectory of the region.

The broader economic impact of gaming in the UAE

Forecasts for the future performance of the Wynn-Al-Marjan naturally vary, but what they all have in common is that they appear highly lucrative. Projections repeatedly fall in the $3 billion to $5 billion range when forecasting the annual gross revenue from paid gaming. Those close to the fine details of the project list the following justifications for such lofty economic figures:

●      A 225,000-square-foot casino floor open to players from around the world and with a focus on VIPs and high-net-worth individuals

●      1,500 hotel rooms equipped with the very latest mod cons and delivered to a standard that makes them among the most elite in the world

●      Additional suites, luxury villas, and classic townhouse-style accommodation choices will turn the resort into a place to base yourself, not just to play

While the UAE will have its own casinos, it will go so much further than simply offering a new activity by achieving such seamless integration. An increased number of direct flights designed to make casino-backed resorts some of the most desirable locations anywhere in the Middle East is essential to the project. By removing the friction of global travel and offering everything from fine dining to luxury accommodation on one site, the developers hope to attract the most affluent visitors.

But how about in the interim? There’s a simple question that needs to be answered while we wait for the first resort to open in 2027…

Is online casino legal in the UAE?

Yes, provided the online casinos are properly licensed by internationally backed regulatory bodies you can safely play online casinos within the UAE. This is certainly good news for anyone wanting to know is online casino legal in UAE, but how do they compare to the online offerings in other parts of the world? After all, the shift in UAE culture is in part designed to open up the borders to new forms of entertainment enjoyed in other parts of the world.

For those who want to be able to try out a new activity in their spare time, rest assured that there is now a wide array of legal online casinos that can be played. Many now even provide specific bonuses and unique offers for their Emirati players.

The future of UAE casino gambling is certainly bright and it will definitely be interesting and exciting to see how it evolves. Add in the impact on the wider economy and it may just be the beginning of a new wave of business expansion. 

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