The United Arab Emirates (UAE) is breaking boundaries in the global gaming industry, taking pioneering steps towards becoming a regulated gaming hub in the West Asia region. In 2023, the UAE established the "General Commercial Gaming Regulatory Authority" (GCGRA), and by 2024 introduced a licensing framework, laying the foundation for a regulated market and positioning the UAE as a regional competitor in the gaming tourism sector.
Gordon Einstein, founding partner of CryptoLaw Partners, noted that this move by the UAE marks a shift in regulatory strategy. Einstein explained, "It's fascinating to see how small jurisdictions like Malta, Lithuania, and the UAE are striving to establish cutting-edge regulatory environments.
These micro-jurisdictions often act quickly, more flexibly than larger jurisdictions like the EU, which sometimes struggles to keep up." The UAE is indeed moving swiftly, having issued licenses to global players such as Wynn Resorts and Game LLC, with companies like MGM Resorts also applying, hoping to secure a foothold in this emerging market.
Dubai's Transformation Vision
Gordon Einstein moved to Dubai three and a half years ago and believes that this shift is due to Dubai's transformational regulatory vision: "Dubai's approach is that they need to create supportive regulations, establish a framework that makes companies comfortable, so that businesses are willing to relocate their capital and personnel here, essentially betting on this environment."
This proactive approach reflects Dubai's early efforts in regulating virtual assets through the Virtual Asset Regulatory Authority (VARA), which Einstein believes provided a model for the GCGRA, offering clear and centralized oversight mechanisms.
Simplified Licensing Model
The GCGRA's model emphasizes simplification and accountability, similar to the VARA framework. Gordon Einstein pointed out that in other jurisdictions, "you don't know whose regulatory door to knock on... there are 20 different agencies." In contrast, the GCGRA is the sole "door to knock on," responsible for overseeing all aspects of the UAE's gaming licensing process, avoiding the common labyrinth created by multiple agencies.
Beyond regulatory clarity, the UAE's cultural and religious diversity also enables it to design a "very clever" gaming structure. Einstein believes that considering the cultural sensitivities towards gaming in the region, the UAE has adopted a dual approach, setting up "exceptions" in specific areas, allowing non-Islamic residents and tourists to enter the regulated gaming market.
He explained, "They have adopted a liberal and forward-looking policy," adding that this approach reflects the importance of adaptability in regions undergoing significant economic and cultural changes.
Thriving Market
The UAE's financial incentives are equally attractive, with zero personal income tax and a corporate tax rate of 9%, aligning with the EU's minimum tax standards, consistent with Hungary's tax policy. Gordon Einstein observed, "This is a developed country, more developed than many places we call developed.
There is a lot of capital, ample wealth, reliable banking services, and it is very safe." Regulatory transparency, financial incentives, and stable infrastructure make the UAE an ideal destination for gaming investments.
Wynn Resorts, as one of the first major players to obtain a commercial gaming license, is building a $5.1 billion resort on Al Marjan Island in the Emirate of Ras Al Khaimah. Gordon Einstein noted, "The Wynn project represents a massive investment, highlighting the UAE's potential as a gaming powerhouse."
He emphasized that the Emirate of Ras Al Khaimah is a smaller but emerging emirate, similar to Dubai's pioneering role among Middle Eastern cities. "Ras Al Khaimah is boldly moving forward in cryptocurrency and gaming," he said, comparing its bold moves to Dubai's pioneering actions in these fields.
Compliance as a Core Value
Gordon Einstein also emphasized that compliance is non-negotiable. He advised anyone entering the UAE's gaming market, "to obtain a license. They welcome you to come and compete, but if you don't follow the rules, the consequences are not just fines or bans, but could also include criminal penalties." This strict regulatory stance aligns with the UAE's goal of establishing a well-regulated, reputable gaming industry.
With international brands like Aristocrat and Smartplay International obtaining licenses, the UAE's regulated gaming market could see significant growth, potentially reaching $30 to $50 billion. Gordon Einstein concluded, "The UAE is no longer the Middle East of 30 years ago.
It is a developed, vibrant, business-friendly environment, where top global players in gaming, technology, and cryptocurrency are now converging. The world is changing, and so is the UAE."
