UAE Moves Toward Legalizing Gambling with New Lottery License Issuance

Bloomberg International has reported that the UAE government has taken a significant step toward legalizing gambling by issuing its first lottery license, following prior approval for the establishment of the Gulf region’s first casinos.

The agency notes that the issuance of this lottery license suggests the potential future legalization of casinos and other types of regulated gaming.

The General Authority for Commercial Gaming Regulatory has announced that The Game LLC will oversee the UAE Lottery. Although the specifics of the lottery’s launch date and format are yet to be determined, this move marks a crucial advance in creating a regulatory framework for commercial gaming in the UAE.

Gambling is traditionally prohibited under Islamic law, and its legalization represents a significant shift in the UAE, where Sharia law is the foundation of the legal system. The establishment of a federal gaming regulatory authority follows the announcement by the American company Wayne Resorts of a $3.9 billion gaming resort project in Ras Al Khaimah.

The agency reports that legalizing gambling in the UAE could attract additional tourists and investments from China, potentially generating revenue equivalent to 1.3% of the UAE’s GDP, or approximately $6.6 billion—surpassing the revenue generated by Singapore.

In response to growing competition from neighboring countries like Saudi Arabia and Qatar, Dubai has implemented various reforms to reinforce its status as the region’s premier tourist and business hub. These reforms include the introduction of long-term visas and the allowance for unmarried couples to cohabitate.

Gaming companies will be eligible to apply for licenses across all seven emirates. However, Abu Dhabi and Ras Al Khaimah are expected to lead in offering casino operations, while Dubai has postponed its immediate plans to legalize gambling.

Gambling industry leaders are increasingly drawn to the UAE as the country nears the official legalization of gambling, marking a first for the Gulf States.

In September, the UAE announced the creation of the “General Authority for Regulating Commercial Games,” a federal body designed to establish a regulatory framework for commercial games and lotteries, according to official media in Abu Dhabi.

Abu Dhabi revealed that Kevin Moulay has been appointed as the CEO of the Authority. Moulay is described as a global expert with over 30 years of experience in international gaming regulation. He previously served as the executive director of the Missouri Gaming Commission, which managed the state’s riverboat casinos.

The Associated Press considered that the establishment of this authority by Abu Dhabi is “an indication that the UAE is close to allowing gambling with the influx of magnates in the gambling industry to the Gulf state.”

According to the agency, the authority’s work is organized by “a team of world-leading experts in this field, who have extensive experience in organizing and managing effective, safe and responsible games.”

The new authority will “create a responsible gaming environment that ensures that all participants adhere to strict guidelines and comply with the highest global standards in this field.”

The Authority coordinates regulatory activities and licensing management across the UAE, in addition to “facilitating the release of the economic potential of commercial games in a responsible manner.”

Details of a major project that UAE authorities have kept under wraps are gradually emerging. The project involves the development of the country’s first gambling resort, with an estimated cost of up to $3.9 billion.

Wynn Resorts, which will oversee the resort’s operations, has announced that the project will open within four years in the Emirate of Ras Al Khaimah. The resort will feature unique entertainment options and gaming experiences.

Earlier this year, Wynn Resorts commenced construction on “Wynn Al Marjan” Island, which boasts 7.8 kilometers of beachfront and a 23-kilometer waterfront. This will be Wynn’s inaugural project in the Middle East and North Africa region.

Wynn Resorts is known for its casinos in Las Vegas, Boston, and Macau, a Chinese region near Hong Kong.

Gambling activities are generally banned in the Gulf region; however, last year, the Ras Al Khaimah Tourism Development Authority introduced a new regulatory body for “integrated resorts,” which includes gaming facilities.

The company behind the new resort has announced that it will feature 1,500 rooms, 24 dining and lounge areas, SPA facilities, high-end shopping, and nightly laser and light shows. Originally scheduled for 2026, the resort is now expected to open in early 2027.

The development of “Wynn Marjan Island” is anticipated to significantly transform Ras Al Khaimah, enhancing its status as a major global tourist destination. This project is expected to boost the emirate’s economy through tourism and job creation and spur rapid growth in related business sectors.

Last year, Reuters reported that the UAE plans to permit certain forms of gambling, with each emirate given the autonomy to decide and regulate its policies. This approach mirrors the differing regulations across emirates, such as Sharjah’s prohibition on alcohol sales, which contrasts with policies in other emirates.

Several international resort and gambling operators are exploring opportunities to open branches in the UAE, drawn by the country’s growing appeal to tourists. This interest reflects a newfound potential for gambling, which was previously unavailable in the region.

Earlier this year, Ras Al Khaimah, one of the UAE’s smaller and lesser-known emirates, announced plans to regulate gambling within select resorts. On the same day, Wynn Resorts, a leading Las Vegas-based gambling company, revealed its plans to develop a licensed gambling resort on an artificial island.

These developments could mark a significant shift for the Gulf region, which has historically adhered to Islamic law more strictly than other Middle Eastern areas, where gambling was once considered unthinkable. Now, the region is looking to emulate models from places like the Beirut Gambling Club and luxury hotel casinos in Egypt.

If Ras Al Khaimah paves the way for gambling and other emirates follow, international gambling halls and renowned hotels already established in the UAE could see significant benefits. Many are eyeing Dubai, the largest and most prominent tourist destination in the Emirates, where gambling remains prohibited.

Officials from Caesars Palace Resort, which opened in Dubai in 2018 and remains the only property in the American Caesars chain without a casino, have expressed interest in exploring the possibility of introducing a gambling facility in Dubai.

Anthony Costa, Regional President of Caesars Palace Resorts, remarked, “The growing acceptance of gambling in the Emirates opens opportunities for resorts like Caesars and MGM to consider such developments seriously… I find it remarkable.”

Meanwhile, just ten kilometers from Caesars Resort, construction has commenced on an artificial island for a luxury resort by MGM World Resorts, another major player in the Las Vegas gambling scene.

In response to inquiries about the potential for a gambling facility at their new resort, MGM stated, “Gambling was not part of the planning, and there have been no updates to our plans.”

Dubai authorities, typically the most progressive among the Emirates, have previously dismissed social media and business rumors that several hotels had been granted licenses to open gambling establishments.

As the UAE faces growing regional competition for talent and tourism from neighboring Saudi Arabia and Qatar, the country has embarked on a series of liberalization efforts. With a population that is 90% foreign, these moves aim to bolster its appeal in an increasingly competitive market.

In addition to lifting the ban on non-couples cohabiting, easing restrictions on alcohol, and offering long-term residency options, the UAE also shifted its weekend to Saturday and Sunday last year.

This change aligns the UAE more closely with Western countries and markets, making it the only Gulf nation that does not observe Friday, the Muslim day of prayer, as part of its weekend.