The United Arab Emirates (UAE) recently announced the establishment of its federal regulatory authority for governing the domestic gambling, a move seen within the industry as a significant milestone towards the legalization of the gambling market.

According to current federal regulations, anyone caught gambling in the UAE could be sentenced for up to 2-years imprisonment and a fine of AED 50,000 (approx. US$13,615).

The establishment of the General Commercial Gaming Regulation Authority (GCGRA) therefore signifies the development of a national framework for regulating lotteries and commercial gambling in the UAE, indicating further expansion of the industry.

As specific regulations pend promulgation, some operators have begun taking corresponding strategic actions in the region, including the establishment of the Wynn Al Marjan Island, the latest addition to Wynn’s resort line, on the country’s man-made archipelago of Marjan Island.

While federal laws still maintain a relatively strict attitude towards gambling, the establishment of the GCGRA lays the groundwork for future developments. The GCGRA will lead by experienced executives, including CEO Kevin Mulally, a former executive director of the Missouri Gaming Commission with 17 years of experience at Gaming Laboratories International (GLI), and the Chairman of the Board Jim Murren, former chairman and CEO of MGM Resorts International.

Potential relaxation of industry regulations and permissions to online operators and online betting remains undecided, while multiple sources indicate that companies like Wynn have engaged in talks with the government to establish a regulatory framework.

Meanwhile, there are reports indicating the UAE plans to impose a 25% income tax on the industry, with high-end gaming subject to an 8% tax.

Currently, the Wynn Resort is actively preparing to enter the potential market in the UAE. The highly anticipated Al-Marjan Resort and Casino are expected to open in early 2027. With a ballpark cost of US$39 Billion, the new resort will include amusement areas, 1500 hotel rooms, dining and leisure facilities, spa, etc. Although licenses are pending, and operational details remain to be confirmed, the CEO of Wynn expresses confidence in the prospects of this market, considering it one of the most exciting new markets in decades.