According to recent reports, the UAE – the United Arab Emirates – has set up a regulatory gaming body. The GCGRA – General Commercial Gaming Regulatory Authority – will be coordinating regulatory and licensing activities to “unlock the economic potential of commercial gaming”.
While “commercial gaming” doesn’t necessarily refer to casinos, there are a few clues that hint towards this being a regulatory movement for the iGaming industry. If this were to be the case, this represents a major shift not only for the UAE, but for the Middle-East as a whole.
iGaming And The Middle East
Just last year, the global online gambling market was said to be sitting at around $63.5 billion, with that number expected to reach $70.64 before 2023 is out. But despite the huge amount of revenue that iGaming can bring to countries, it is yet to be legalised for the majority of the Middle-East.
As of right now, the only Arab countries that permit online casinos are Morocco, Egypt, Tunisia, and Lebanon. All four of these countries have experienced the benefits of legalisation, with the best online Arab gambling sites seeing thousands of users utilising their platforms every day. Egypt, specifically, has an iGaming market that is set to reach nearly $2.2 billion by 2026, with a CAGR of 6.67%.
It is likely that the UAE will take notice of this, and realise the immense possibilities that iGaming can bring to their economy. Just look at the USA as an example. So far, only seven states in the US have legalised online gambling, but the country as a whole is responsible for a $3 billion market share.
Think of how far the US could elevate the iGaming market if every other 43 states were to get on board. That’s the potential that every country will be aware of, not least the UAE, who are actively looking to boost their economy and tourism prospects – so far, there is a projected growth rate of 4% in 2024. The appetite for iGaming is stronger than ever, and the UAE could be about to tap into it.
The Question Of Gaming
We mentioned before that “commercial gaming” does not necessarily equate to iGaming, but there are signs that this regulatory body will be focusing mainly on the introduction of online gambling. The CEO, for instance, is Kevin Mullally, who was an executive director of the MGC – Missouri Gaming Commision – working to regulate online casinos across the state.
In a statement, Mullally was quoted as saying he looks forward to “establishing a robust regulatory framework for the UAE’s lottery and gaming industry”. And it would make sense when examined in relation to the UAE’s neighbouring countries. For years, the UAE has been facing competition for revenue and tourism from Saudi Arabia and Qatar.
Just last year, Qatar hosted the 2022 FIFA World Cup, which generated billions of dollars worth of revenue. Saudi Arabia, too, has initiated Saudi Vision 2030 – a roadmap for global engagement, economic diversification and enhanced quality of life. It will be hosting the FIFA World Cup in 2034, and even before that, it has already made several steps in diversification – not least the recently announced eSports World Cup tournament which will take place every year after 2024.
With eSports intrinsically linked with online casinos, and many online casinos already having brought options for players, this fuels rumours that the Middle-East might be about to get on board with iGaming – which similarly makes the UAE itchy to make the first move.
But Will It Really Happen?
Saudi Arabia, along with other Middle-Eastern countries, have been focusing on the potential of the gaming market for a few years now. The UAE, specifically, believes that regulating the iGaming industry could generate up to $6.6 billion, which would be a significant boost to the country if it were to happen. But all of this remains to be seen.
There is certainly an appetite for it, as proven by the overall iGaming revenue growth and the arab casino sites already experiencing success. But law changes can be slow, and there are always a number of different opinions which can make the process complex. As we mentioned before, the US has been experiencing a lot of success with its iGaming industry, but the majority of US states have still not licensed iGaming operators, even after witnessing its potential on home shores.
The signs are all there that the UAE is eyeing up a move towards casinos, but nothing has happened until it’s happened! As ever with this booming – and ever-changing – industry, we will just have to wait and see.