UAE to Assign One Online Gaming License Per Emirate, Echoing Land-Based Structure – iGamingToday.com

The United Arab Emirates’ newly established General Commercial Gaming Regulatory Authority (GCGRA) plans to adopt a licensing model for online gaming that mirrors its approach to the land-based casino industry. This means allowing a maximum of one business-to-consumer (B2C) online gaming license per each of the country’s seven emirates, according to sources cited in a recent report by Vixio GamblingCompliance.

Online Licensing Parallel to Land-Based Industry

Currently, the same one-license-per-emirate framework governs land-based gaming facilities. To date, only one land-based casino license has been issued under this model, for Wynn’s US$5 billion integrated resort in Ras Al Khaimah. Speculation suggests Abu Dhabi may secure a second land-based license, but it is not expected that all seven emirates will pursue such ventures.

Likewise, the new online gaming market will witness individual emirates make a choice of whether to opt in to hosting an operator with sole rights. Vixio GamblingCompliance expects that at most two or three emirates will proceed with licensing online gaming operators, a measured but forward-looking regulatory approach.

Foundations for Licensing Already in Place

The recent issuance of business-to-business (B2B) vendor licenses has laid essential regulatory and commercial groundwork ahead of operator license grants. Some of the recent licenses that were granted include iGaming platform operator Hub 88 Holdings Ltd and sports data company Sportradar AG, both indicating the sector’s soon-to-be expansion.

Highlighting Innovation and Adaptive Regulation

At the September SBC Summit in Lisbon, GCGRA CEO Kevin Mullally expressed his vision to make the UAE a global leader in gaming technology innovation. Mullally encouraged suppliers to deliver creative gaming content without being constrained primarily by regulatory frameworks.

Mullally stressed that the industry and technology suppliers are not to base game designs on what is currently regulated. He said that the regulator’s intention is to adapt its rules to facilitate new gaming ideas, maintaining the protection of players and data integrity, rather than preventing creativity from taking place. He went on to say that the UAE wants to establish a new international standard in gaming by making innovation the central point, with regulation adjusting to catch up.

Prospects for the UAE Gaming Market

The UAE’s federal approach to controlled online gaming reflects its broader ambitions to diversify its economy and boost tourism while maintaining strict regulatory controls. The allocation of only one license per emirate aims to balance market development with risk management.

With foundations established and the regulator already expressing openness toward new technology-driven gaming experiences, the UAE market appears to entice operators who cherish both operational exclusivity and innovative flexibility.

Being a relatively new regime in the commercial gaming arena, the UAE, under the GCGRA, is forging a distinctive path that seeks to balance strict regulation with incentives for innovative gaming technologies and services to thrive.

Source: Inside Asian Gaming (IAG)