The United Arab Emirates has taken a major step towards legalizing gambling by granting its first official lottery licenses.
The move could pave the way for the legalization of casinos and other forms of gambling in the UAE. [Getty]
The UAE has granted its first lottery licenses, which could pave the way for the legalization of casinos and other forms of gambling in the country.
The UAE’s General Commercial Gambling Regulatory Authority (GCGRA) announced that the company will operate under the name UAE Lottery, which describes itself as “a commercial gambling operator specializing in game development, lottery operations and gaming-related content,” according to Bloomberg.
This is the first lottery license issued by the government, but supermarkets, airports and shopping malls have long been allowed to hold raffles offering millions of dollars’ worth of prizes. Local banks and duty-free shops at Dubai airport also sell tickets. But the government recently asked some of the biggest organizers to halt such activities.
GCGRA Chairman Jim Mullen called the move a “significant milestone,” as reported by Bloomberg. “It marks the establishment of a disciplined, world-class regulatory framework for lottery activity and underscores our commitment to fostering a safe and fulfilling commercial gaming environment in the UAE,” he added.
In Islam, gambling, referred to in the Quran as maysir and qimar, is forbidden. In most countries where Islamic law is the primary or sole source of law, games that constitute “games of chance” are prohibited. However, in Muslim-majority countries such as Egypt, which has the most casinos in the Middle East and North Africa, gambling is interpreted as a personal freedom.
Over the past year, United Arab Emirates authorities have established a federal agency to regulate gambling after Las Vegas-based Wynn Resorts, which is currently building a $3.9 billion gambling resort in the emirate of Ras Al Khaimah, said it would receive a license “soon.”
Legalizing gambling could be a big benefit to the UAE, which is facing increased competition for tourists from neighboring countries such as Saudi Arabia. The move would attract more tourists as well as potential investment from China, and is estimated to generate gambling revenue equivalent to 1.3% of the UAE’s gross domestic product, according to Bloomberg.