UAE Regulator Issues Important Warning on Risks of Unlicensed Markets

  • UM News
  • Posted 1 year ago
00:00 / 00:00

**UAE Gaming Authority Alerts Against Unlicensed Operations**

The General Commercial Gaming Regulatory Authority (GCGRA), the official body overseeing gambling in the UAE, has issued an essential caution to both industry stakeholders and gaming participants about the dangers of engaging with operators lacking official licenses.

The core of the GCGRA’s warning focuses on the heightened risks faced by players who choose to gamble with unregulated entities. These risks involve the potential for financial losses, falling victim to scams or dishonesty, personal data theft or misuse, increased vulnerability to cyber threats like malware or phishing, and involvement in regulatory or criminal investigations which could result in reputational harm.

Kevin Mullally, the CEO of GCGRA, stated, “Our mission at the GCGRA is to ensure a secure and lawful gaming environment in the UAE.”

He advised individuals to “remain cautious and well-informed to shield themselves from the hazards of illegal gaming activities. By adhering to legal standards, you not only protect your personal and financial well-being but also uphold community integrity. Always choose licensed operators if you decide to participate in gaming.”

He further explained, “Unlicensed operators have not undergone independent checks for the fairness or security of their technology and games. They lack obligations for responsible operation or basic consumer protections. Furthermore, they are not subject to advertising laws and are not financially regulated, including adherence to anti-money laundering policies.”

“Thus, consumers are strongly advised to steer clear of these unlicensed entities to shield themselves from negative repercussions. Likewise, advertisers, payment processors, and related service providers who engage with these businesses risk facing penalties and potential challenges in continuing operations within the UAE.”

Presently, the GCGRA has granted only one lottery license to The Game, LLC, operating as The UAE Lottery.

Moreover, the Federal Law by Decree that instituted the GCGRA allows some existing lottery activities to persist. This includes Big Ticket and Dubai Duty Free, airport lotteries that have been in operation for nearly three decades, which remain under GCGRA’s jurisdiction.

This warning emerges during a critical juncture for the future shape of the UAE’s gaming industry. Stakeholders are keenly awaiting more detailed insights on the regulatory framework anticipated to evolve by 2025, which will define the market’s future and its primary participants.

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