UAE Announces First Licensed Lottery Operator: Stringent Penalties for Illegal Gaming

The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the UAE, announced the award of a licence to operate the UAE’s first authorised lottery.

According to official news agency WAM, the announcement marks a new milestone in the GCGRA’s efforts to establish a well-regulated commercial gaming sector in the UAE, built on the principles of transparency, accountability, consumer protection and responsible gaming practices.

The lottery licence was awarded to The Game LLC, a commercial gaming operator specialising in game development, lottery operations, and gaming-related content.

Operating under the banner of the “UAE Lottery,” the GCGRA’s first licensee will offer a diverse range of lottery games and other games designed to cater to players’ various interests and financial preferences.

Jim Murren, the Chairman of GCGRA, said, “The launch of the UAE Lottery is a pivotal event that not only marks the establishment of a disciplined world-class regulatory framework for lottery activities but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE.”

Kevin Mullally, CEO of the GCGRA, reaffirmed: “The GCGRA is steadfast in its commitment to global best practices in consumer protection and regulatory oversight.

Our regulatory framework is designed to ensure the integrity, fairness, and transparency of commercial gaming activities in the UAE, which include lottery games. It also provides consumers with a comprehensive set of tools to monitor and manage their gaming activity.

Additionally, we are leveraging new technologies to foster the creation of safe, entertaining games and drive consumer-focused innovation.”

GCGRA has developed a comprehensive regulatory framework aimed at protecting consumers and the legitimate interests of all stakeholders.

Engaging in, conducting, or facilitating commercial gaming activities within the UAE without approval from the GCGRA is illegal and exposes offenders to severe penalties. Playing as a consumer via unlicensed operators is also illegal, according to the GCGRA framework.

What is Commercial Gaming

According to the GCGRA, commercial gaming refers to "any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e., placed as a bet – for the purpose of winning a sum of money or other valuable items."

The definition extends to agreements within such games that require the loser to compensate the winner with money or any other valuable item.

"Commercial games encompass gaming machines, internet gaming, electronic skill-based games, lottery games, event wagering (including bets placed on certain events such as sporting events or horse racing), along with any other form of commercial gaming regulated and licensed by the GCGRA," the gaming regulator states on its website.

"It is important to note that games incorporating elements of skill alongside or in place of chance are still encompassed within the definition of commercial gaming. The integration of skill-based elements does not negate the characterisation of the activity as commercial gaming."

Engaging in, operating, or facilitating commercial gaming activities without a valid licence is unlawful and will result in legal action, including "criminal penalties." Participating as a player in activities offered by unlicensed operators — whether online or at a physical venue — is illegal and may subject individuals to "severe penalties."

For consumers, participating in unlicensed activities can lead to legal action. Additionally, there is a "high risk of fraud and financial losses, with no recourse through legal channels for recovery."

For companies, operating without a licence can result in "severe penalties, including fines and closure, tarnishing business reputation."

The GCGRA will determine if an activity falls within the definition of commercial gaming or promotional activities. In a legitimate promotion, prizes are treated as marketing expenses, not a method to generate revenue. Prizes typically include giveaways or time-sensitive discounts that are tied to the objective or goal of the promotion.

The GCGRA is an independent executive entity within the UAE federal government that regulates, licences and supervises all commercial gaming activities and facilities in the UAE.

Headquartered in Abu Dhabi, the GCGRA has a team of experts in commercial gaming regulation, financial crime prevention, gaming technology, law enforcement, responsible gaming and other related domains.

Responsible Gaming

The GCGRA enforces responsible practices across "every aspect of the gaming experience, from game design to marketing strategies and the provision of player support services."

Responsible gaming safeguards consumers and minimises the potential adverse consequences of excessive gaming for individuals and society. According to the authority, commercial gaming should be an entertainment and leisure activity, not a means to generate income or make money.

Gaming becomes problematic when a leisure activity turns into an unhealthy one that may lead to personal, financial, and social repercussions.

Problematic gaming is generally marked by reckless, impulsive, or compulsive engagement with gaming, indicating a lack of control and responsibility. Understanding and recognising the signs of problematic gaming is essential in creating a safe gaming environment for everyone and offering timely support.

Key signs include difficulty in stopping gaming despite a desire to quit, spending excessive time at gaming venues, betting beyond one's financial capabilities, and borrowing money to play or pay debts.