UAE gaming regulator issues warning on dangers of playing with unlicensed lottery operators

On December 9, UAE’s gaming regulator, the General Commercial Gaming Regulatory Authority (GCGRA), issued a warning of the dangers of doing business or playing with unlicensed lottery or gaming operators. The UAE Lottery is due to hold its inaugural jackpot draw on December 14.

In July, The Game secured The UAE Lottery lottery license. Tickets for its AED100 million Lucky Day draw went on sale on 27 November. Two pre-existing lotteries, Big Ticket and Dubai Duty Free, which have been operating for more than 30 years, are also permitted to continue under GCGRA’s supervision.

“In accordance with the law, all other pre-existing lotteries will not be considered for continued operations and the GCGRA has ordered them to shut down,” – the GCGRA said.

In the statement, the regulator warned that consumers who choose to play or do business with an unlicensed operator face significant risks such as:

“financial loss, becoming the victims of cheating or fraud, having their personal data stolen or misused, increasing the risk of malware, phishing, or other cybersecurity threats, and being implicated in a regulatory or criminal investigation and the subsequent reputational damage.”

The GCGRA does not name any companies targeting UAE players in its notice. However, several fiat and crypto gaming operators are known to have been active in the market. Semrush estimates traffic of 39.6 million going to gambling-related domains in the year to date, although this includes licensed offerings.

Mahzooz and Emirates Draw also previously operated in the UAE. However, Mahzooz’s website says it stopped operations in the UAE from January 1, 2024. In the wake of The Game prevailing in the lottery license contest, it announced plans for a pivot into new gaming verticals. Meanwhile, Emirates Draw also paused UAE operations from January 1 this year in response to a GCGRA request. It too plans to apply for UAE licences in other verticals.

Kevin Mullally, CEO of the GCGRA, commented:

“Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators.”

“These unlicensed businesses have not had their technology or games independently evaluated for fairness or security. They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences,” – Mullally added.

The warning is not just for players. Mullally said advertisers, payment solution providers, and other suppliers could face sanctions or actions that could prevent them from doing business in the regulated UAE market.

Established in September 2023 with former MGM Resorts CEO Jim Murren as chairman, the GCGRA has issued three industry suppliers in Aristocrat, Smartplay International, and PayBy Technology Projects authorization to provide specialized services to approved gaming operators in the country.

It has also granted the UAE’s first Commercial Gaming Facility Operator license to Wynn Resorts for its $5.1 billion Wynn Al Marjan Island project in Ras Al Khaimah.

As per information released upon its establishment last year, the GCGRA’s charter is to “create a socially responsible and well-regulated gaming environment, ensuring that all participants adhere to strict guidelines and comply with the highest standards. It will coordinate regulatory activities, manage licensing nationally, and facilitate unlocking the economic potential of commercial gaming responsibly.”

Source: yogonet.com

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.