In the United Arab Emirates, a shift is emerging in the world of gaming and casinos. While the glitzy city of Dubai has opted to put its casino plans on hold, its neighbouring emirates of Abu Dhabi and Ras Al Khaimah are taking the lead in exploring the possibilities of introducing casinos within their borders.
This development follows the UAE’s establishment of a framework for legalized gaming in September, creating opportunities and challenges for different emirates. Abu Dhabi is actively envisioning what a casino might look like in its jurisdiction. Yas Island, renowned for attractions such as Ferrari World, Warner Bros. theme parks, and the Yas Marina Formula One Circuit, is among the potential locations being considered for a casino venture, in addition to a site near the city’s port.
Abu Dhabi and Ras Al Khaimah moving ahead
In contrast, Ras Al Khaimah, a northern emirate situated about a 45-minute drive from Dubai, has become a focal point for casino development. Wynn Resorts Ltd., a Las Vegas-based heavyweight in the industry, has unveiled ambitious plans for a US$3.9 billion integrated resort, set to open its doors in 2027.
However, Dubai, despite its reputation as a vibrant and thriving city, has chosen to defer immediate casino endeavours. Senior government officials, after extensive deliberations, concluded that gambling isn’t a current priority for the city. This decision reflects Dubai’s developing tourism sector and its ability to attract visitors without the inclusion of casinos.
It remains uncertain how long Dubai will keep its casino plans on the backburner, and authorities might revisit the idea should circumstances change. In the interim, city officials are contemplating an alternative approach by exploring the possibility of introducing a poker series, catering to a different facet of the gaming industry.
The prospect of introducing casinos presents a significant paradigm shift in the UAE, a country primarily governed by Islamic and Shariah law, where gambling is strictly prohibited and illegal. Offenders can face fines or imprisonment, reflecting the country’s strict stance on the matter.
While the plans remain fluid and subject to change, there are considerations for granting each emirate a single casino license. This approach aims to strike a balance between capitalizing on the lucrative casino market while maintaining control over growth.
Tax structure still to be defined
Bloomberg Intelligence speculates on the potential of the UAE’s casino market, suggesting that it could surpass that of Singapore in terms of revenue. However, the visibility of profitability remains uncertain as the government has yet to define a tax structure. Benchmarking against Singapore, the UAE’s gaming revenue might reach US$6.6 billion, with implied gaming spending per tourist potentially falling below that of Singapore and Macau. Despite the comparable financial capacity of tourists in the UAE, factors such as the presence of opulent luxury hotels in Dubai could influence this outcome.
Wynn Resorts’ Chief Executive Officer, Craig Billings, anticipates the issuance of a gaming license for Ras Al Khaimah in the near future. The ultimate decision to issue licenses in other emirates lies with their respective rulers.
Despite recent geopolitical developments, including the Israel-Hamas conflict, some industry executives remain forward-looking and enthusiastic about the gaming potential in the UAE. MGM Resorts International’s CEO, Bill Hornbuckle, expressed optimism about the prospect of having multiple casinos in the emirates. He emphasized that the decision ultimately rests with each ruler in determining the location and nature of gaming activities.
UAE gaming and lottery regulator
Dubai may benefit indirectly from the casinos in Abu Dhabi and Ras Al Khaimah as it continues to attract visitors. The UAE is expected to generate substantial gaming revenue, potentially reaching US$6.6 billion annually and surpassing Singapore, according to Bloomberg Intelligence.
The evolving gaming sector in the UAE is marked by a willingness to adapt and explore new opportunities, even if Dubai chooses not to have its own casino. The introduction of a gaming and lottery regulator, chaired by former MGM CEO Jim Murren, signals the country’s commitment to addressing this dynamic industry. The path forward is characterized by anticipation, adaptability, and a recognition of the potential for a thriving gaming market in the region.
As the UAE develops this evolving terrain, the global gaming industry awaits further transformation, with the potential for both economic growth and fresh opportunities for many operators and stakeholders in the bustling emirates.
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