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Release date: Sunday, July 28, 2024, 1:00 PM
Last updated: Monday, July 29, 2024 at 7:09 AM
The UAE’s first licensed lottery operation was announced on Sunday, along with the establishment of a regulatory framework for commercial gambling. The General Commercial Gambling Regulatory Authority (GCGRA) said the regulatory framework will ensure fairness and transparency of all commercial gambling activities, including lotteries, and protect consumers.
Unlicensed commercial gambling in the UAE is illegal for both operators and players. Here we tell you everything we know about the UAE’s first lottery operator, how its activities constitute commercial gambling, and the penalties and risks of illegal gambling.
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What do we know about The Game, the UAE’s first lottery operator?
The Game LLC is a commercial gaming operator specializing in game development, lottery operations, and gaming-related content. The company operates under the name “UAE Lottery” and offers a range of lotteries and other games “designed to cater to the various interests and financial preferences of players.” The exact types of games offered have not yet been disclosed.
The Abu Dhabi-based company combines “cutting-edge technology with culturally relevant gaming products,” according to its website. Further details were not provided.
What is a commercial game?
According to GCGRA, commercial gambling is “any game of chance, or a combination of chance and skill, in which a fixed sum of money, or cash equivalent, is wagered or wagered and the object is to win money or other valuables.”
This definition also applies to any agreement within a game that stipulates that the loser must compensate the winner with money or other items of value.
“Commercial gaming includes gaming machines, Internet gaming, electronic skill-based gaming, lottery gaming, event betting (including betting on specific events such as sporting events and horse racing) and other forms of commercial gaming regulated and licensed by GCGRA,” the gaming regulator states on its website. “It is important to note that games that incorporate an element of skill alongside or instead of an element of chance still fall within the definition of commercial gaming. The incorporation of a skill-based element does not negate the characterization of an activity as a commercial game.”
Is it illegal to play commercial games without a license?
Yes. According to GCGRA, “engaging in, operating or promoting” commercial gambling activities without a valid license is illegal and subject to 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 could subject individuals to “severe penalties.”
What are the risks?
For consumers, participating in unauthorized activities can result in legal action, and “high risk of fraud and financial loss with no legal recourse.” For businesses, operating without a license can result in “severe penalties, including fines and closure, and damage to the business’s reputation.”
Does promotional activity qualify as a commercial game?
No, but GCGRA will determine whether an activity falls within the definition of commercial gaming or promotional activity.
“In legitimate promotions, prizes are treated as a marketing expense, not a means to generate revenue. Prizes typically include a free gift or limited-time discount that is tied to the purpose or goal of the promotion.”
What is the General Commercial Gaming Authority?
GCGRA is an independent enforcement authority within the UAE Federal Government that regulates, licenses and supervises all commercial gambling activities and establishments in the UAE. Headquartered in Abu Dhabi, GCGRA has a team of experts in commercial gambling regulation, financial crime prevention, gambling technology, law enforcement, responsible gambling and other related fields.
What is Responsible Gaming?
GCGRA enforces responsible practices across “all aspects of the gaming experience, from game design to marketing strategies and the provision of player support services.” Responsible gaming protects consumers and minimizes the potential negative impacts of excessive gaming on individuals and society. According to the agency, commercial gaming should be a recreational or leisure activity and not a means of generating income or making money.
When is a game problematic?
This occurs when leisure activities turn into unhealthy ones, which can lead to personal, economic and societal consequences.
“Problem gaming is typically characterised by reckless, impulsive or compulsive gaming engagement and demonstrates a lack of control and responsibility. Understanding and recognising the signs of problem gaming is essential to creating a safe gaming environment for all and providing timely support,” GCGRA stated.
The main signs include an inability to stop gaming even when you want to, spending excessive time at gaming venues, betting beyond your financial means, and going into debt to play or pay off debts.
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