The United Arab Emirates continues to take steps towards legalizing and regulating gambling. The newly formed GCGRA has signed a deal with New Jersey, which has one of the best-established gambling frameworks in the US. The deal will see the two parties work together on player protection and cybersecurity, and comes just months after the Middle Eastern country introduced its first lottery product to the market.
UAE Gambling Regulation Expansion
Under current federal law, the UAE prohibits all forms of gambling. The government has taken clear steps to legalize and regulate the industry, and it looks to be following the US’s lead in allowing individual emirates to dictate their own gambling regulations.
Players in the US can access online casinos like Klikki Kasino, getting access to large selections of games, a variety of bet types, and, most importantly, regulated gambling and the player protections this offers.
New Jersey Experience
In light of the similarities between the two countries, it is perhaps unsurprising that the UAE’s new governing body has signed a deal with New Jersey. Although Delaware was the first state to legalize online gambling, in 2012, NJ wasn’t far behind, introducing regulation of its own in 2013.
Behind Michigan, it has the highest online gambling revenue of all US states, despite having some unusual regulations to contend with.
There are approximately 30 licensed online casinos in New Jersey. Online gambling in New Jersey hit a new record high of just under $250 million in March this year, offsetting a decline in land-based revenue.
The New Jersey Casino Control Commission, which is the group that oversees gambling regulations in the state, has more than a decade of experience that the UAE can draw on.
New Jersey Gambling Laws
Gambling in New Jersey is restricted. In 1974, the state voted against legalizing casinos, but, two years later, amended this vote to allow casinos within the borders of Atlantic City. This rule remains in place, and any online casinos that operate within the state must have their servers based in Atlantic City, too.
Beyond this, however, gambling is quite open in the state. Sports betting and casinos can be run online or offline. The state saw over $6 billion in total gaming revenue in 2024. New Jersey has a roughly similar population to that of the UAE.
Cultural differences mean there may be some disparity in the gambling market size between the two markets when the UAE’s market is fully established, but it does give the country a target to aim for.
UAE’s New Revenue Stream
The primary religion in the UAE is Islam, which prohibits all forms of gambling. But sensing considerable tourism and economic opportunities, the country’s government has started to change its gambling laws. The majority of residents in the UAE are expats from various cultures around the world, and some commentators believe that new laws may yet prohibit local Islamist residents from wagering at any new casinos and other outlets.
In 2023, the General Commercial Gaming Regulatory Authority (GCGRA) was formed. The group has been tasked with developing a regulatory framework for commercial gaming and was launched after global casino group Wynn announced it was going to open the first land-based casino in the UAE in 2027.
In July 2024, the GCGRA granted the first lottery license in the country. The lottery launched in December of that year. And, following Wynn’s announcement, MGM declared they had applied for a UAE license.
Wynn Resorts is one of the biggest casino gambling companies in the world and it already has Wynn Las Vegas and Encore in Las Vegas, as well as Wynn Palace in Macau.
UAE Planned Gambling Expansion
Experts believe that once the first casinos launch or their license applications are accepted, many will follow.
The UAE tends to go all in on ideas, and many expect casinos in the country to be some of the biggest and most opulent in the world, likely rivaling New Jersey, Las Vegas, and even Macau. However, these experts also expect the UAE market to concentrate on high-wealth high rollers – quality over quantity, if you like.
Online gaming licenses are expected to follow the launch of land-based casinos, with each emirate being granted one physical license and one online license each. And it is online gambling where the UAE has turned to New Jersey for its expertise.
The government views gambling, and the tourism it may help bring to the UAE, as being an important revenue stream with the GCGRA chief executive, Kevin Mullally, saying: “Commercial gaming is a key pillar of the UAE’s strategy for diversified economic growth, playing a significant role in driving tourism and attracting foreign investment.”
On the partnership, Mullally said: “This moment represents a unique opportunity to align innovative technology with modern, collaborative regulation to unlock substantial economic potential while ensuring the highest standards of consumer protection.”
Meanwhile, the head of Choose New Jersey, a group dedicated to bringing new business to the state, said: “The collaboration between the DGE and GCGRA will strengthen our international economy while prioritizing responsible gaming.”
The GCGRA
The GCGRA already has an extensive gambling regulation background. Chairman Jum Murren is the former chairman and CEO of MGM Resorts, while also having served as the chairman of the American Gaming Association.
Board member Nicholas Casiello Jr has over 40 years’ experience in gaming law while fellow board member William W. Grounds has served on the board of MGM Resorts International and currently serves on the board of PointsBet Holdings.
The group is headed by Kevin Mullally, the former Executive Director of the Missouri Gaming Commission. Mullally headed the world’s first self-exclusion program and has authored work on gaming regulatory practices.
It has also been announced that IGT has become the 7th supplier to acquire a UAE license. The license was granted at the beginning of May, and IGT joins Novomatic, Aristocrat, EQL Games, Smartplay International, Xpoint, and PayBy as fully licensed operators within the country.
