The chairman of the Commercial Gaming Regulatory Authority (GCGRA), Jim Murren, has revealed ambitious plans for the gaming industry in the United Arab Emirates (UAE).
The UAE government established the GCGRA to oversee the creation of a stringent licensing and regulatory framework that operators must follow.
The organisation recently awarded its first gaming licence to Wynn Resorts Ras Al Khaima, opening the door for the UAE to become a major player in the industry.
Murren Adopts a Cautious Approach
Murren has emphasised that the UAE is keen to establish a state-of-the-art, highly compliant and rigorous regulatory regime for gaming.
Wynn Resort has secured the first casino licence and Murren has confirmed that other operators would be welcomed on board, albeit gradually.
The GCGRA is focused on operators that are already licensed as they look to prioritise trusted brands over firms with no track record.
They have also issued licences for a national lottery and a few gaming equipment vendors, gently opening the door for the sector to take a foothold in the Middle East.
The Economic Potential of the UAE’s Emerging Gaming Market
The UAE’s gross addressable market for casinos is estimated to be $8.5 billion. Wynn Resort alone is expected to generate around $1.4bn in gross gaming revenue annually.
These numbers are incredible for a sector which was previously prohibited by religious laws. The UAE could soon compete with global gaming hotspots like Las Vegas and Singapore.
However, the UAE’s decision to move slowly may hinder short term growth. Having only two or three casinos in operation will constrain the market.
The move will help operators grow without much competition. They will use the head start to capture a significant portion of the gambling market.
Opportunities for Local Tech Firms
The expansion of iGaming in the UAE is not just exciting for international operators. Local technology development companies will also enjoy the boon.
As the gaming industry continues to grow, local tech firms will be tasked with building mobile apps, payment systems, customer service tools, regulatory compliance software and more.
UAE-based payments provider PayBy recently became the first local firm to acquire a gaming vendor licence as the government looks to involve more homegrown companies in the ecosystem.
These collaborations could help make the UAE the leading nation for innovative iGaming technologies, benefiting operators and local economies.
For Arab players at the best online casino in Dubai, this advancement promises to deliver a seamless gaming experience tailored to the region’s unique needs.
The tech firms must create solutions that align with a regulated market. From blockchain-based transparency tools to artificial intelligence-driven customer experiences, the possibilities are endless.
The partnership between gaming operators and UAE-based companies could lead to locally developed technologies being exported to other global markets.
Murren Likens the UAE to Vegas
Murren compared the UAE’s current trajectory to Las Vegas’ transformation – the parallels are striking. Vegas was a small railroad town in the desert formally established in 1905.
A small city with around 800 residents morphed into a gambling hub that attracted notable celebrities such as Frank Sinatra and Sammy Davis Jr around the baccarat tables by the 1950s.
“One reason I am moving here is because I see the same kind of growth in sports and entertainment as I saw in Vegas 30 years ago,” Murren said.
“There’s such great vision in this country in terms of infrastructure. The private sector is doing its part in terms of building integrated resorts too.
“I can envision other entertainment products being here, but the confluence of sports, entertainment and hospitality is an important trend that will continue.”
The UAE wants to incorporate gaming into a broader strategy encompassing sports, tourism and hospitality. The integrated resorts will be a catalyst for tourism and lead to the creation of thousands of jobs.
The country could soon be challenging long-established gaming cities such as Vegas and Macau as the premier destination globally.
