From Prohibition to Regulation: UAE's Gaming Regulatory Authority Unveiled
With the establishment of the General Commercial Gaming Regulatory Authority (GCGRA), the United Arab Emirates (UAE) is exploring uncharted territories. This government agency was created to supervise and control gaming operations across the nation. The UAE's entry into the realm of gaming regulation marks a substantial change in the country's perspective on this sector.
Current Situation and Fines
Currently, gambling is outright forbidden in the UAE. According to UAE federal legislation, anyone who participates in gambling operations risks harsh penalties, such as up to two years in prison and fines of AED 50,000. However, the government understands the necessity for a nationwide strategy to gaming legislation these prohibitions may be reviewed.
Background and Experience
The UAE has enlisted the help of seasoned experts from the American gaming industry to lead this project. This tactical decision highlights the UAE's dedication to making sure the GCGRA runs with the highest level of proficiency and expertise. The hiring of expertise from the US gaming business is a testament to the seriousness with which the UAE views this endeavour.
The Goal
The GCGRA's main objective is to create a gaming environment that is defined by accountability and strict regulation. The UAE wants to provide a well-regulated environment where gamers may participate in gaming activities while adhering to clear and responsible rules.
Uncertain Areas
Despite the fact that the GCGRA's implementation is an important step toward the regulation of gaming in the UAE, several specifics are still not apparent. Which types of gambling will be allowed and if an internet gaming component will be added are still in speculation. As the regulatory system evolves, it is anticipated that these particulars will become clearer.
Potential Taxes on Gambling
According to reports, the UAE intends to impose a 25% revenue tax on mass market gambling and an 8% tax on premium gaming.
Author
Charbel Fadel, Partner
Nour Makarem, Associate
