Recently, the United Arab Emirates (UAE) formally opened its doors to the gambling industry by issuing licenses to a lottery operator, a casino development company, and a game development firm that specializes in slot machine titles and other games for online casinos. What has spurred the country to do this is its desire to create a legal framework that aligns with global standards.
To regulate this industry appropriately, the country’s regulatory body, the General Commercial Gaming Regulatory Authority (GCGRA), has enacted a framework similar to models used by several US jurisdictions, especially Nevada and New Jersey, which have some of the best-developed regulations for governing commercial gaming operations. However, the UAE hasn’t been able to offer the same gaming options as these states.
That’s because these states and many others have allowed players to enjoy sports betting options both online and in-person instead of just lotteries. Additionally, according to gambling expert Vlad Grindu, US residents can access the best online casinos available in every state, regardless of whether there exists regulated iGaming there or not. These sites offer perks like large game libraries, instant transactions, and extensive loyalty programs.
US states have decades of experience in handling the complexities of commercial gambling, as legalities are handled on a state-by-state basis, this makes the overall legal regime more adaptable. One of the key ways in which the UAE has made its regulations adaptable is by establishing clear licensing requirements, but the processes it has detailed in these have been modeled on those implemented by US gambling hubs like Pennsylvania.
These procedures are designed to ensure that operators are vetted thoroughly. The reason behind the UAE following in the footsteps of states with robust gambling sectors when it comes to licensing is so they can only allow certain kinds of operators who can meet and stick to their high standards. That’s because by requiring them to meet these standards they’ll be able to ensure that only credible and sustainable businesses will enter the market.
When it comes to enforcing licensing requirements states like Nevada and New Jersey have stood out for their robust approaches. The UAE has mirrored these approaches by establishing mandatory reporting requirements, compliance checks, and regular audits.
These measures will be overseen by the GCGRA, however, this authority’s responsibilities aren’t limited to compliance enforcement. That’s because it will also focus on integrating cutting-edge technologies to streamline its regulatory processes.
This approach has also been inspired by procedures US regulators have adopted and it entails using tools that can make monitoring real-time gaming activity along with responding immediately to any irregularities easier. In the UAE’s case, the country is mostly interested in using AI and data analytics.
These technologies can help the GCGRA adapt faster to new challenges and industry developments. Another area in which the UAE’s regulations have drawn insights from US frameworks is tax structuring. This is because the country has also introduced a balanced tax regime that offers significant revenues to the government whilst not hindering the industry’s growth.
The tax system that the UAE has enacted has been designed this way so it can encourage investment to contribute to the nation’s economy. To do this the country has ensured that this taxation model keeps operational costs manageable for gambling operators.
However, this move to legalize and regulate gambling aligns with the nation’s larger economic vision of diversifying the industries it depends on. With legal gambling, the UAE is aiming to become a major tourism destination.
This is also something this government has emulated from US cities like Las Vegas and Atlantic City, which have demonstrated how regulating gambling can attract visitors, boost local businesses, and create more jobs. Nevertheless, the UAE is not embracing gambling so it can be another gaming destination as it wants to offer a comprehensive entertainment experience.
Despite this, the country’s decision to offer regulated gaming options has strengthened its appeal. That’s because it will now be able to offer a blend of culture, luxury, and entertainment that will resonate with international tourists. Although it will have to settle among a tricky cultural reality that sees most locals unable to access such services, for tourists, it’s a welcome change and yet another reason why the UAE has cemented itself as one of the most luxurious and exclusive tourist destinations in the world.