GCGRA warns illegal operators ahead of UAE Lottery’s debut draw.

GCGRA Reaffirms The Game LLC as Sole Lottery Licensee in UAE

The Game LLC is the only lottery operator authorized to hold lotteries in the United Arab Emirates, according to a statement released by the General Commercial Gaming Regulatory Authority (GCGRA) on December 9. The declaration reaffirmed the authority’s resolve to oversee the sector and guarantee adherence to the Federal Law by Decree that oversees the nation’s lottery activities.

The UAE Lottery’s Milestone Achievement

The Game LLC was awarded the UAE Lottery license in July this year. After reaching this milestone, on November 27, tickets went on sale for the much-anticipated AED100 million Lucky Day draw. This was an important milestone in the company’s development becoming the leading lottery supplier in the United Arab Emirates.

A Restricted Purview for Lottery Activities

The GCGRA claims that only two other current lotteries are allowed to continue operating alongside The UAE Lottery due to the legislative framework.
These are the lotteries managed by Big Ticket at Abu Dhabi International Airport and Dubai Duty Free.

All other lottery operations that were previously active in the UAE have been mandated to cease their activities. The GCGRA clarified:

“Under the provisions of the law, lotteries that were operating outside this framework are no longer eligible to continue. Consequently, the GCGRA has issued directives for their closure.”

Former Operators Affected by the Regulatory Shift

It is well known that a number of fiat-based and cryptocurrency-enabled gaming platforms were operating in the United Arab Emirates prior to this law, even though the GCGRA did not specifically mention any organizations in its notice. The popularity of these activities is highlighted by industry data, such as a Semrush research that estimates 39.6 million visits to gambling-related websites in the United Arab Emirates this year.

Due to legal changes, Mahzooz and Emirates Draw, two once well-known lottery suppliers in the United Arab Emirates, have already halted their operations.

Mahzooz: On January 1, 2024, the platform stopped operating in the United Arab Emirates. Since then, it has declared its intention to look into additional gaming options in order to stay competitive in the industry.
Emirates Draw: In accordance with a GCGRA order, Emirates Draw also suspended its UAE-based operations at the beginning of the year. In the future, the business plans to apply for licenses in other gaming verticals in the United Arab Emirates.

Risks to Consumers and Regulatory Alert

Customers have been sternly advised by the GCGRA not to deal with unlicensed operators. These platforms put users at risk for a number of things, such as monetary losses, fraud, and data breaches. Customers may also fall victim to phishing or malware attacks and become involved in legal or regulatory actions.

GCGRA CEO Kevin Mullally emphasized the significance of following the law, saying:

“Playing only with licensed operators ensures your financial and personal safety while upholding the integrity of our community.
Unlicensed platforms don’t have the responsibility, fairness, or monitoring needed to safeguard customers.

Mullally pointed out other issues with unlicensed operators, such as the lack of:

• Games are independently assessed for security and fairness.
• Responsibility for responsible gaming
• Ads, prize funds, and anti-money laundering regulations must be followed.

Wider Consequences for Stakeholders

Advertisers, payment solution providers, and other third-party partners are also subject to the warning, in addition to players. Mullally issued a warning that organizations collaborating with unlicensed operators may be subject to fines or other limitations that could affect their capacity to conduct business in the regulated market of the United Arab Emirates.

“By avoiding unlicensed operators, you protect yourself from harmful consequences while supporting the UAE’s efforts to create a secure and trustworthy gaming environment,” he said in closing, asking both consumers and businesses to prioritize compliance.

The statement from the GCGRA marks the beginning of a new era of secure and regulated lottery operations and confirms The Game LLC’s status as the only lottery licensee in the United Arab Emirates. The GCGRA’s stringent regulation attempts to protect players’ interests and the integrity of the gaming ecosystem in the United Arab Emirates, even when erstwhile operators like Mahzooz and Emirates Draw shift to new gaming verticals.