GCGRA licences The Game LLC to operate UAE Lottery

0
Abu-Dhabi-United-Arab-Emirates.jpg

The General Commercial Gaming Regulatory Authority (GCGRA) has officially announced The Game LLC as the operator for the United Arab Emirates’ inaugural national lottery.

Operating under the name UAE Lottery, The Game LLC will provide a diverse range of lottery games and products tailored to meet the preferences and financial needs of players, as stated by the GCGRA.

Who is the UAE Lottery Operator?

Information about The Game LLC is currently limited. According to the GCGRA, this entity is characterized as a commercial gaming operator specializing in game development, lottery management, and gaming-related content.

The Game LLC is a subsidiary of Momentum, an Abu Dhabi-based firm recognized for its expertise in mobile game development, virtual reality solutions, iGaming, and esports management.

While the company has yet to publicly comment on winning the lottery license, the details regarding the launch timeline of UAE Lottery remain unclear. However, the GCGRA has emphasized its strong commitment to implementing global best practices for consumer protection and regulatory oversight. Kevin Mullally, the regulator’s chief executive, stated, “Our regulatory framework is designed to ensure the integrity, fairness, and transparency of commercial gaming activities, including lottery games. We are focused on equipping consumers with tools to manage their gaming activity while leveraging innovative technologies to promote safe and engaging gaming experiences.”

Details on lottery regulations are still under wraps, but insiders indicate that payout rates will range from 40% to 60% of ticket sales. Additionally, an “interesting single-digit” tax will be imposed on revenues, complementing the UAE’s 9% corporate tax. The Game LLC is also expected to pay a license fee deemed high but justifiable for a 10-year concession.

Emirates Draw and Mahzooz: Surprising Bidders Left Out

Notably, the UAE’s two prominent lottery operators—Emirates Draw and Mahzooz—did not secure the national lottery license. Both companies complied with the GCGRA’s request to temporarily halt operations while enhancing their systems and preparing competitive applications.

The invitation for applications, along with a directive for operators to suspend activities, was issued at the end of December, with submissions required by early January. Some insiders indicated that the lengthy process resulted from cultural considerations and a commitment to thoroughness. Each operator believed their established presence and player base uniquely positioned them as frontrunners for the license. Industry News reported that both companies have been contacted for commentary on this outcome.

Implications for UAE’s Raffle Operators

The GCGRA has made it clear that any engagement in commercial gaming operations without its consent is illegal and could lead to severe penalties. This raises questions about the future of raffle operations—particularly those run by entities such as Abu Dhabi Duty Free’s Big Ticket and Dubai Duty Free’s Millennium Millionaire.

These raffles have continued operating within their respective free zones, sparking uncertainty regarding their potential conflict with the new UAE Lottery. Notably, Big Ticket paused its operations in April at the regulator’s behest, only to resume draws in June, while Dubai Duty Free maintained its raffle activities throughout this period.

The GCGRA’s Upcoming Priorities

With the lottery license now awarded, the GCGRA is turning its attention to two significant initiatives: the licensing of integrated resorts and the establishment of a regulated iGaming market.

Construction is underway at Wynn’s resort in Ras Al-Khaimah, although the timeline for its licensing remains uncertain. Wynn CEO Craig Billings has referred to the UAE as “the most exciting new market opening in decades,” anticipating that Wynn will benefit from a first-mover advantage for years to come. As other operators finalize their plans for new resorts in the region, clarity on potential locations remains elusive. Notably, Dubai, where MGM Resorts is pursuing non-gaming developments, is currently not part of this casino expansion dynamic.

Abu Dhabi, home to the GCGRA, is likely to outline future plans. MGM Resorts’ CEO, Bill Hornbuckle, has confirmed the company’s keen interest in the UAE market, with speculation that other operators, including Caesars and various Macau concessionaires, may soon join.

On July 28, the GCGRA also announced its full board of directors and executive team. Detailed profiles of the leadership can be found here.

Leave a Reply

Your email address will not be published. Required fields are marked *