GCGRA licenses The Game LLC to operate UAE Lottery
The Game LLC will operate as the UAE Lottery, offering a range of lottery games and other products “designed to cater to players’ variety of interests and financial preferences” the GCGRA said.
Who is the new UAE Lottery operator?
Which other companies were bidding for the lottery licence?
What’s next in the UAE’s gaming expansion plans?
GCGRA chairman Jim Murren said the launch of the UAE Lottery is “a pivotal event that not only marks the establishment of a disciplined world-class regulatory framework for lottery activities but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE.”
The Game LLC is the first business licensed by the GCGRA, the UAE’s federal regulator established in September last year.
Who is the new UAE Lottery operator?
There is little online about The Game LLC, however. The GCGRA describes the business as “a commercial gaming operator specialising in game development, lottery operations and gaming-related content”.
It is a subsidiary of Momentum, an Abu Dhabi-based business that claims expertise in mobile games development and publishing, virtual reality, igaming and esports management.
The company has not yet commented on the licence award and it remains unclear when it plans to launch the UAE Lottery.
“The GCGRA is steadfast in its commitment to global best practices in consumer protection and regulatory oversight,” the regulator’s chief executive Kevin Mullally said. “Our regulatory framework is designed to ensure the integrity, fairness and transparency of commercial gaming activities in the UAE, which include lottery games.
“It also provides consumers with a comprehensive set of tools to monitor and manage their gaming activity. Additionally, we are leveraging new technologies to foster the creation of safe, entertaining games and drive consumer-focused innovation.”
Those regulations governing the UAE Lottery are not yet publicly available. However executives close to the process say payout rates are set between 40% and 60% of ticket sales. An “interesting single digit” tax will be applied to revenue, alongside the UAE’s 9% corporation tax.
The Game will also pay a licence fee, described as high but justifiable for a 10-year licence by one source.
Emirates Draw and Mahzooz miss out on UAE lottery licence
Most striking about the announcement is the fact the UAE’s two most prominent lottery operators – Emirates Draw and Mahzooz – were not selected to run the national lottery.
Each company paused operations at the GCGRA’s request and submitted applications, spending the time either enhancing their internal systems or operating in other markets.
The invitation to apply – alongside a request to shut down operations – was issued in late December, with the submission deadline in early January. Sources close to each business suggest they did not expect the shutdown to last so long, although one suggested this was down to cultural sensitivities and making sure the process was as thorough as possible.
Each operator suggested their experience of the market and existing player base positioned them better than any other for the licence. iGB has approached both companies for comment.
What of the UAE’s raffle operators?
The GCGRA notes engaging in, conducting or facilitating commercial gaming opportunities without its approval is “illegal and exposes offenders to severe penalties”.
This raises the question of whether raffles, popular through operators such as Abu Dhabi Duty Free’s Big Ticket and Dubai Duty Free’s Millennium Millionaire, will be permitted. As these essentially operate in ‘free zones’, it is unclear whether they would be superseded by the UAE Lottery.
Big Ticket continued operations until April, when it paused draws following a request from the regulator. However draws resumed in June, according to Alarabiya News. Dubai Duty Free has continued raffles throughout the process.
Next on the agenda for the GCGRA
With a lottery licence issued, the GCGRA has two other major projects to work on, namely the licensing of integrated resorts and the launch of a regulated igaming market.
For land-based, construction is under way at Wynn’s Ras Al-Khaimah resort, although it remains unclear when it will receive its licence.
Wynn CEO Craig Billings described the UAE as the “the most exciting new market opening in decades” following the operator’s Q3 results announcement last November. With other operators still finalising plans to break ground on their own resorts, he expects Wynn to have first-mover advantage for a number of years.
In terms of where the other resorts may ultimately appear, it’s currently not clear. Dubai, where MGM Resorts has a non-gaming development, is not participating.
This means Abu Dhabi – where the GCGRA is based – is most likely to announce plans next. MGM Resorts’ CEO, Bill Hornbuckle, has confirmed the operator’s interest in the market, while sources suggest the likes of Caesars or Macau concessionaires may join the fray.
Today (28 July) the GCGRA also unveiled its full board of directors and executive team. Find out who’s who here.