The federal regulator of the United Arab Emirates has launched its official website and named the recipient of its first lottery license in a move described as a “potential sentiment-changer” for investors eying legalized commercial gaming in the UAE.
Among a raft of information such as license types and regulator profiles, the General Commercial Gaming Regulatory Authority (GCGRA) website names The Game LLC, a subsidiary of Abu Dhabi-based Momentum, as the emirates’ first licensed lottery operator, to operate under the name UAE Lottery.
In a Monday note, CBRE Institutional Research described the website launch itself as a “key marker and potential sentiment-changer” as well as a major step forward in the UAE’s regulatory process. Analyst John DeCree said the move adds “validity and transparency to the process” and should “further alleviate skepticism in the investment community regarding legalized commercial gaming in the UAE.”
As previously reported by IAG, the GCGRA was established in September 2023 and tasked with introducing a regulatory framework for commercial gaming and a national lottery. It is chaired by former MGM Resorts boss Jim Murren, with former Missouri regulator and long-time General Counsel for GLI, Kevin Mullally, the CEO.
DeCree noted that the GCGRA’s website provides some hints around the UAE’s likely regulatory framework, including that licenses could be perpetual provided operators remain compliant.
“Although there seems to be an initial term with a license expiration, the license renewal process appears more administrative in nature,” he wrote.
“This would make the UAE licensing environment mores akin to Nevada rather than the concession models in Macau and Singapore. If this is the case, we believe public investors could assign higher valuation multiples to UAE commercial gaming operations relative to jurisdictions with less predictable or more competitive renewal procedures.
“The UAE is still the next gaming frontier. We continue to believe the UAE is one of the most attractive global gaming opportunities today. The GCGRA is staffed by well-known and experienced gaming veterans and has been working expeditiously to craft industry-leading regulations, which are now becoming visible. The incremental thoroughness and depth of the licensing process laid out should be well-received by the investment community that has been seeking transparency on this global gaming expansion opportunity.”
Wynn Resorts is on track to open the UAE’s first licensed casino, having begun construction of a US$4 billion integrated resort on Al Marjan Island in Ras Al Khaimah.
