The General Commercial Gaming Regulatory Authority has chosen The Game LLC as the operator of United Arab Emirates first national lotteries.
GCGRA announced that The Game LLC would operate under the UAE Lottery brand, and offer a variety of lottery games as well as other products. These are “designed to meet the interests and preferences of players” and will be available in a wide range.
What is the name of the new UAE Lottery Operator?
What other companies bid for the Lottery licence?
Next in UAE gaming expansion plans
GCGRA Chairman Jim Murren stated that the launch of UAE Lottery was “a pivotal moment” which not only marked the establishment of an international regulatory framework to govern lottery activities, but also underlined our commitment in nurturing a safe and enriching commercial gaming environment within the UAE.
The Game LLC was the first company to be licensed by GCGRA (the UAE federal regulator), which was established in September of last year.
What is the name of the new UAE Lottery Operator?
The Game LLC is not well-known online. GCGRA defines the company as “a commercial gambling operator that specializes in game development and lottery operations, along with gaming-related content.”
The company is part of Momentum. This Abu Dhabi-based firm claims to be an expert in the development and publication of mobile games, virtual reality and esports.
It is unclear whether the company will launch the UAE Lottery or not.
Kevin Mullally, the chief executive of GCGRA said that they were committed to implementing global best practices for consumer protection and regulation. Our regulatory framework is intended to guarantee the integrity, transparency, and fairness of commercial gaming in the UAE. This includes lottery games.
It also gives consumers a set of comprehensive tools for monitoring and managing their gaming activities. We are also leveraging the latest technologies to create safe and entertaining games, as well as drive innovation geared towards consumers.
The regulations that govern the UAE Lottery have not been made public yet. Executives close to the process have said that payout rates range between 40-60% of ticket sales. A “interesting one-digit” tax, along with the UAE’s 9 percent corporation tax, will be applied to revenues.
One source described the licence fee as being high, but justified for a 10 year licence.
The UAE Lottery licence does not include the Mahzooz and Emirates Draw.
The most striking thing about this announcement is that the UAE’s leading lottery operators, Emirates Draw, and Mahzooz were not chosen to run the National Lottery.
The GCGRA requested that each company suspend operations and submit applications. They spent the time either improving their own systems or expanding into other markets.
Early January was the deadline for submitting applications, along with a request that operations be shut down. The application invitation and closure request were sent out in December. The sources close to the businesses say they didn’t expect it to take so long. One source suggested that this is due to the cultural sensibilities of the business and the need to be thorough.
Both operators said that their knowledge of the existing market and player base made them the best candidates for a license. iGB has contacted both companies to get their comments.
How about the UAE raffle operators?
GCGRA states that engaging in commercial gaming, or conducting it without their approval “is illegal and subject offenders to serious penalties”.
It is unclear if the UAE Lottery will allow raffles such as those offered by Abu Dhabi Duty Free, Big Ticket, and Dubai Duty Free, Millennium Millionaire. It is not clear if the UAE Lottery will replace these operators, as they operate essentially in “free zones”.
Big Ticket operated until April when, on the request of regulators, it paused its draws. Alarabiya News reports that draws were resumed by June. Dubai Duty Free continues to hold raffles during the entire process.
The GCGRA agenda is now set.
The GCGRA is now working on two major projects, including the licensing and regulation of the igaming industry.
Construction is already underway for the land-based resort at Wynn Ras Al-Khaimah, but it’s unclear when they will be granted their licence.
Craig Billings, Wynn’s CEO, described the UAE in November as “the most exciting market to open for decades”. Wynn will have the first mover advantage in a few years, as other operators are still finalising their plans for resorts.
It’s not yet clear where else the resorts will be built. Dubai, the location of MGM Resorts’ non-gaming project, will not be participating.
Abu Dhabi, where GCGRA’s headquarters are located, is likely to be the next city to reveal plans. Bill Hornbuckle, CEO of MGM Resorts confirmed that the company is interested in entering the market. Sources suggest other operators such as Caesars and Macau may also join.
The GCGRA has also revealed its entire board of directors, including the executive team. Here’s a list of who you can find.
