The GCGRA shakes up UAE’s lottery market

Shirley Pulis Xerxen January 8, 2024

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The GCGRA shakes up UAE’s lottery market

The recently established General Commercial Gaming Regulatory Authority (GCGRA) in the United Arab Emirates (UAE) has ordered all operators, including prominent lottery providers like Mahzooz and Emirates Draw, to suspend their operations starting January 1, 2024.

Both Mahzooz and Emirates Draw have complied with the regulatory directive, with the latter announcing the temporary pause on its Facebook page, stating, “We’ve temporarily paused our sales in the UAE from January 1st, 2024, to enhance your gaming experience in line with the latest directives from the UAE Gaming Regulatory Authority (GCGRA), with the aim to establish a well-regulated gaming environment in the UAE. Stay tuned for exciting updates!” Mahzooz echoed similar sentiments, describing the pause as an industry-wide mandate consistent with the Regulators’ new role to create a well-regulated gaming environment in the United Arab Emirates.

However, the lack of clarity regarding the duration of the suspension raises concerns, especially as Mahzooz appears to have halted draws for all players, while Emirates Draw is excluding only customers based in the UAE. The divergence in their approach suggests a level of regulatory ambiguity about what activities are currently permissible, highlighting the need for clearer guidelines.

GCGRA’s mission and impact on UAE’s gambling landscape

The GCGRA, formed just last year, is swiftly asserting its influence on the UAE’s gaming industry. Despite not providing an official statement on the suspension of lottery operations, the GCGRA is mandated to establish a socially responsible gaming environment, ensuring companies adhere to local rules and the highest standards.

While gambling has traditionally been forbidden under local laws, lottery companies had previously operated with exceptions granted by the Ministry of Economy. The recent suspension indicates a significant shift, suggesting the emergence of a new licensing framework.

The GCGRA’s formation drew global attention due to the government’s commitment to a regulated land-based casino market. With experienced figures such as former Missouri gaming regulator Kevin Mullaly as CEO and former MGM Resorts International boss Jim Murren chairing the board, the GCGRA signals a regulatory body with a global outlook and respect for industry expertise.

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