The UAE Lottery is due to hold its inaugural jackpot draw on Saturday 14 December and, in the run-up, the federal regulator has issued a warning of the dangers of doing business or playing with unlicensed lottery or gaming operators.
In its communication issued on 9 December the General Commercial Gaming Regulatory Authority (GCGRA) reiterated that The Game LLC was the sole lottery licensee in the UAE.
The Game secured The UAE Lottery lottery licence in July this year. Tickets for its AED100 million Lucky Day draw went on sale on 27 November.
The UAE Lottery is the only show in town
The Federal Law by Decree that established the GCGRA permits two lotteries in the UAE to continue operations, the regulator noted.
Only Big Ticket in Abu Dhabi International Airport and Dubai Duty Free can continue operations alongside The UAE Lottery.
“In accordance with the law, all other pre-existing lotteries will not be considered for continued operations and the GCGRA has ordered them to shut down,” the GCGRA said.
Who could the GCGRA be referring to?
The GCGRA does not name any companies targeting UAE players in its notice. However a number of fiat and crypto gaming operators are known to have been active in the market. Semrush estimates traffic of 39.6 million going to gambling-related domains in the year to date, although this includes licensed offerings.
Two high-profile lotteries previously operated in the UAE, Mahzooz and Emirates Draw.
Mahzooz’s website says it stopped operations in the UAE from 1 January 2024. In the wake of The Game prevailing in the lottery licence contest, it announced plans for a pivot into new gaming verticals.
Emirates Draw also paused UAE operations from 1 January this year in response to a GCGRA request. It too plans to apply for UAE licences in other verticals.
GCGRA CEO to consumers: “Stay vigilant and informed“
Consumers that gamble with unlicensed operators face “significant risks”, the GCGRA said.
Aside from losing money, they could become the victims of cheating or fraud, the regulator explained. They risk having their personal data stolen or misused, malware or phishing attacks. Some could even be implicated in a regulatory or criminal investigation.
“Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community,” GCGRA chief executive Kevin Mullally added. “If you choose to play, do so only with licensed operators.”
Unlicensed businesses have not had technology or games independently evaluated for fairness or security, Mullally continued. “They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws.
“Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences.”
The warning is not just for players. Mullally said advertisers, payment solution providers and other suppliers could face sanctions or actions that could prevent them from doing business in the regulated UAE market.
