The UAE’s first licensed lottery operation was announced Sunday, marking the establishment of a regulatory framework for commercial gaming. The General Commercial Gaming Regulatory Authority (GCGRA) said its regulatory framework protects consumers as it ensures fairness and transparency of all commercial gaming activities, including lotteries.
Unlicensed commercial gaming in the UAE is illegal for both operators and players. Here is all we know about the UAE’s first lottery operator, whose activities come under commercial gaming, and penalties and risks of illegal gaming.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
What do we know about The Game, the UAE’s first lottery operator?
The Game LLC is a commercial gaming operator that specialises in game development, lottery operations, and gaming-related content. Operating under the banner of the ‘UAE Lottery’, the company will offer a “diverse range” of lottery and other games “designed to cater to players’ variety of interests and financial preferences”. The exact type of games it will offer has not been revealed yet.
Based in Abu Dhabi, the company blends “cutting-edge technology and culturally relevant gaming products,” according to its website. No further details are available.
What is commercial gaming?
According to the GCGRA, commercial gaming refers to “any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items.”
The definition extends to agreements within such games that stipulate the loser must compensate the winner with money or any other item of value.
“Commercial games encompass gaming machines, internet gaming, electronic skill-based games, lottery games, event wagering (including bets placed on certain events such as sporting events, or horse racing), along with any other form of commercial gaming regulated and licensed by the GCGRA,” the gaming regulator states on its website. “It is important to note that games incorporating elements of skill alongside or in place of chance are still encompassed within the definition of commercial gaming. The integration of skill-based elements does not negate the characterisation of the activity as commercial gaming.”
Is commercial gaming without a licence illegal?
Yes. According to the GCGRA, “engaging in, operating, or facilitating” commercial gaming activities without a valid licence is unlawful. It will result in legal action, including “criminal penalties.”
Participating as a player in activities offered by unlicensed operators — whether online or at a physical venue — is illegal and may subject individuals to “severe penalties”.
What are the risks?
- For consumers, taking part in unlicensed activities can subject them to legal action. Additionally, there is a “high risk of fraud and financial losses, with no recourse through legal channels for recovery.”
- For companies, operating without a licence can lead to “severe penalties, including fines and closure, tarnishing business reputation.”
Do promotional activities come under commercial gaming?
No. The GCGRA will, however, determine if an activity falls within the definition of commercial gaming or promotional activities.
“In a legitimate promotion, prizes are treated as marketing expenses, not a method to generate revenue. Prizes typically include giveaways or time-sensitive discounts that are tied to the objective or goal of the promotion.”
What is the General Commercial Gaming Regulatory Authority?
It is an independent executive entity within the UAE federal government that regulates, licenses, and supervises all commercial gaming activities and facilities in the UAE. Headquartered in Abu Dhabi, the GCGRA has a team of experts in commercial gaming regulation, financial crime prevention, gaming technology, law enforcement, responsible gaming and other related domains.
What is responsible gaming?
The GCGRA enforces responsible practices across “every aspect of the gaming experience, from game design to marketing strategies and the provision of player support services.” Responsible gaming safeguards consumers and minimises the potential adverse consequences of excessive gaming for individuals and society. According to the authority, commercial gaming should be an entertainment and leisure activity, not a means to generate income or make money.
When is gaming considered problematic?
This happens when a leisure activity turns into an unhealthy one that may lead to personal, financial, and social repercussions.
“Problematic gaming is generally marked by reckless, impulsive, or compulsive engagement with gaming, indicating lack of control and responsibility. Understanding and recognising the signs of problematic gaming is essential in creating a safe gaming environment for everyone and offering timely support,” the GCGRA states.
Key signs include difficulty in stopping gaming, despite a desire to quit; spending excessive time at gaming venues; betting beyond one’s financial capabilities; and borrowing money to play or pay debts.