UAE’s First Casino License: A Game Changer or Just a Small Beginning?

At the start of this month, I woke up to the exciting news that the UAE has issued its first casino license to Wynn Resorts. This giant brand now has the green light to begin its $3.9 billion Wynn AI Marjan Island Project, which is expected to launch in 2027.

The general feeling is that this is probably only the first of many casino and online gaming licenses that’ll be approved in the UAE over the years ahead. For a country that has long been traditional and restrictive towards commercial gaming, the recent news is a big step and has undoubtedly peaked interest.

I’m quite curious. Will this cause a significant and rapid shift in the UAE and MENA region, or is it just a very cautious and exploratory first step? As the Regulatory Managing Director for Responsible Gaming MENA, I am naturally hoping for this first step to be quickly followed by other responsible players seeing the opportunity to enter the new UAE gaming market with the obvious boost to the economy and the leisure and tourism sector.

However, I believe the award of this first, new license will only be a significant game changer if gaming operators, GCGRA (General Commercial Gaming Regulatory Authority), and the UAE government work closely hand-in-hand. Success will depend upon all parties cooperating, being on the same page and having a shared desire to adopt highly responsible gaming practices.

The Need for Collaboration Among Stakeholdersa

Gaming operators, GCGRA, and the UAE government are the key stakeholders that will together dictate the future of commercial gaming in the country and the pace at which it will grow. How so? Well, it’s rather straightforward.

Firstly, the operators are the ones who’ll run the casino floor. As such, they act as the intermediaries between the regulators and players. Operators will have to adhere to firm rules and standards outlined by GCGRA. At the same time, they need to ensure people who visit their casinos have safe and enjoyable sessions.

As the regulator, the GCGRA has a vital responsibility to make sure operators don’t cut corners. The body must closely monitor early casino resorts and confirm that they follow responsible gaming practices and do not breach money laundering requirements. Of course, operators that fall short will be penalised. The establishment of a firm regulatory regime from the outset for early adopters will send a clear signal to others of the standards to be met in entering the market.

With its roots in banking compliance, Responsible Gaming MENA believes that clear lessons can be learnt from the work of the UK Gambling Commission. For example, in March 2022, the Commission imposed an enforcement action on 888 UK Limited’s of £9.4 million in March 2022 for money laundering and responsible gaming failures, acting as a strong warning to other players and with the prospect that in extreme cases of non-compliance, the operator might even lose its license.

You may want to ask, where does the UAE Government come in? To me, they’re the ultimate overseer and so have to adopt a balanced, middle ground. New casinos and online gaming operators should be encouraged to apply for licenses benefiting from the commercial opportunities and contributing growth in the country’s economy but should also be very clear they can only do so if they fully respect the rich and grounded national culture and prevailing regulatory regime.

The Government are gatekeepers of the Federal laws that are effective alongside the GCGRA regulations. These regulations relate to licensing requirements, advertising, operational standards and in future, money laundering etc. But I expect that these regulations will not be implemented in silos and without consulting with industry advisors to ensure that these regulations are both practical and realistic.

Working Together for Success

So if the UAE’s first casino license is going to be a game changer, this will be in the combined hands of gaming operators, GCGRA, and the UAE government. Recognising and adopting common high standards across the board with all stakeholders working closely together will realistically be the only way to ensure sustainable growth in the UAE gaming market.

And on this basis, I am particularly optimistic that things will turn out very well. It took a long time for the UAE to get here, and it is already very clear that the GCGRA’s leadership and pragmatic regulatory requirements demonstrate that they know exactly what they are doing. Whilst, the first lottery license and the first casino license have now been awarded, the first casino floors won’t be open until 2027. So, in reality the pace of change and growth will be relatively measured and progressive. In the meantime, I am keeping my fingers crossed as I anticipate online gaming licensing developments based upon this very important first step.