The United Arab Emirates (UAE) has taken a significant step in the regulation of its gambling industry by announcing the establishment of the Gulf Cooperation Council Regulatory Authority (GCGRA).
This state-run regulatory body, as reported by WAM, will oversee and coordinate all regulatory activities in the Emirates, including the management of licensing.
While the creation of the GCGRA is a significant development, many crucial details about the regulations remain unclear.
One pressing question is the specific types of gambling that the UAE will permit, and whether there will be an online component to the industry.
Additionally, there is uncertainty surrounding the connection between the GCGRA and the ongoing development of a new casino on Al-Marjan Island in the Emirate of Ras Al Khaimah, led by Wynn Resorts.
Wynn CEO Craig Billings expressed optimism about the issuance of a Ras Al Khaimah license, but it remains unclear whether the federal regulatory model will require Wynn to reapply for approval.
Another point of interest is the regulation of the UAE’s existing raffles, Emirates Draw and Mahzooz, which could fall under the GCGRA’s jurisdiction if they are considered part of the broader lottery landscape.
To lead this regulatory effort, Kevin Mullally, the former executive director of the Missouri Gaming Commission and a veteran of Gaming Laboratories International (GLI), has been appointed as the GCGRA’s chief executive.
Jim Murren, former chairman and CEO of MGM Resorts, will chair the organization’s board of directors.
The decision to adopt a federal approach to gambling regulation was influenced by consulting firms such as GLI and Eilers & Krejcik Gaming, the latter being known for its involvement in digital gambling markets.
This approach will centralize gambling regulation at the federal level, rather than relying on individual emirates to manage it.
Regarding taxation, the UAE is planning to implement a 25% revenue tax on mass market gambling and an 8% tax on premium gaming.
As these regulatory developments unfold, they coincide with Wynn Resorts’ $3.9 billion casino project on Al-Marjan Island, which recently commenced construction and is expected to be completed by 2027.
Wynn holds a minority stake in the project, with local partners owning the majority share.
The GCGRA is likely to play a pivotal role in providing the necessary licensing for Wynn’s ambitious casino development.
However, the practical implementation of this partnership remains uncertain, given the stringent legal consequences associated with gambling in the UAE, including imprisonment and substantial fines as per federal law.