The UAE has been steadily advancing its regulatory framework to adapt to global trends while maintaining cultural and legal sensitivities. Among the sectors drawing attention in recent years are gaming and gambling, latter having traditionally faced stringent restrictions in the UAE. However, the regulatory environment is evolving, with new laws in 2024 expanding pathways for legal compliance in these industries.
At Al Safar and Partners, we aim to provide insights into these developments, assisting businesses in navigating the legal landscape related to gaming or gambling licenses and establish operations in the UAE.
Legal Framework for Gaming and Gambling in the UAE
Gaming and Gambling Distinction
The UAE distinguishes between gaming (video games, esports) and gambling (betting on sporting events and games of chance). While gaming is generally permissible with proper licensing and oversight, gambling remains largely prohibited except in specific local jurisdictions where regulatory exceptions apply.
Regulatory Authorities
1- The National Media Council (NMC) oversees video gaming content to ensure compliance with cultural and ethical standards.
2- The General Commercial Gaming Regulatory Authority (GCGRA), established in 2023, manages the licensing and regulation of gaming and gambling activities.
3- Dubai Creative Clusters Authority (DCCA) provides support for gaming companies in Dubai’s free zones, enabling business incorporation and intellectual property protection.
New Legal Provisions in 2024
The 2024 updates emphasize:
Enhanced Licensing Procedures: Simplified pathways for gaming and gambling licenses, particularly Ras Al Khaimah's integrated resorts.
Compliance Requirements: Strict adherence to anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.
- Taxation and Revenue Sharing: Implementation of a structured taxation regime on revenues from gambling activities, offering clear guidelines for operators.
Obtaining a Gaming License in the UAE
Gaming licenses are required for companies involved in:
- Developing and publishing video games.
- Hosting esports tournaments.
- Online gaming platforms and applications.
Key Steps for Licensing:
- Business Incorporation: Establish the company in a designated free zone, such as Dubai Internet City or Abu Dhabi’s TwoFour54.
- Application Submission: File the gaming license application with the relevant authority (e.g., DCCA).
- Compliance Documentation: Include a detailed content review report and proof of adherence to the UAE’s ethical standards.
- Annual Renewals: Maintain active compliance with content and operational guidelines.
Gambling Licenses in Designated Zones
Currently gambling licenses are restricted to specific integrated resorts, such as Ras Al Khaimah’s Wynn Resort. The regulatory framework prioritizes transparency and operational integrity and we expect more jurisdictions to follow suit.
Eligibility Criteria:
- Companies must demonstrate financial capability and experience in managing gambling operations.
- Applications are limited to high-value integrated projects that contribute to tourism and economic development.
Licensing Process:
- Application to the GCGRA: Provide operational plans, anti-money laundering policies, and financial projections.
- Operational Approval: Secure government approval for gambling activities, including slot machines, poker rooms, and sports betting platforms.
- Monitoring and Audits: Regular audits by the GCGRA to ensure compliance with UAE laws and international best practices.
Challenges and Compliance for License Holders
- Cultural Sensitivity: Both gaming and gambling operations must align with UAE values and legal norms.
- AML/CFT Compliance: Businesses must establish robust systems to monitor financial transactions and report suspicious activities.
- Advertising Regulations: Marketing campaigns must adhere to the UAE’s stringent guidelines to avoid promoting gambling to minors or vulnerable populations. The operators must promote responsible gambling and highlight the availability of problem gaming / gambling resources.
Corporate Structuring and Legal Assistance
At Al Safar and Partners, we provide end-to-end support for businesses looking to establish operations in the UAE gaming and gambling sectors. Our services include:
- Legal Advisory: Expert guidance on navigating the regulatory landscape.
- Business Incorporation: Assistance with setting up entities locally.
- Licensing Support: Efficient application processes for gaming and gambling licenses.
- Compliance Audits: Ensuring adherence to UAE laws and international standards.
Conclusion
The evolving legal framework for gaming and gambling in the UAE in 2024 offers significant opportunities for businesses willing to comply with the stringent regulatory environment. Whether establishing a gaming studio or operating a gambling facility, proper legal guidance is essential to success.
Al Safar and Partners is well-equipped to assist businesses in navigating these complexities, providing tailored solutions for licensing, incorporation, and compliance. Contact us today for a consultation to explore opportunities in this dynamic sector on +971.4.4221944, or email us via: reception@alsafarpartners.com - www.alsafarpartners.com
Written by:
Mr. Eduard Nedelcu - Head of Arbitration Law Department at Al Safar and Partners Law Firm .