Speed Check: Know The Gambling Laws in The UAE 2024

Legal Gambling 2024

Recent developments signal a significant shift in this stance: the UAE has begun processing licenses to permit gambling activities within the country.

The General Commercial Gaming Regulatory Authority (GCGRA) in the UAE has already processed its first gambling license.

In addition to granting the initial lottery license to The Game LLC, the GCGRA is currently reviewing applications for other types of gaming licenses.

These include licenses for:

1. Lotteries
2. Internet Gaming
3. Sports Wagering
4. Casinos

With these ongoing regulations, players in the UAE will soon have access to legally licensed online and physical venues for gambling.

It’s important to note that strict legal consequences will apply to those who participate in gambling activities at unlicensed locations, ensuring a safe and regulated gaming environment.

UAE Gambling Laws and Punishments

The UAE takes a strict stance against gambling, reflecting its commitment to uphold social norms and religious principles.

The legal framework governing gambling activities is detailed in Article 460 of Federal Decree-Law No. 31/2021, also known as the penal code.

This law categorizes gambling games as agreements that obligate the loser to pay a predetermined amount to the winner.

The law is clear: participating in gambling activities can result in severe penalties, including imprisonment and hefty fines.

The penalties escalate for those operating or organizing gambling ventures, reflecting the government’s zero-tolerance policy towards facilitating such activities:

Also, under Federal Law No. 5/1985, known as the Civil Transactions Law, any contracts or agreements centered on gambling or illegal wagering are declared invalid and unenforceable.

This is explicitly outlined in Article 1021 of the law:

1. Any agreement relating to gambling, or prohibited betting, is void;
2. A person who loses in gambling or prohibited betting may, notwithstanding any agreement to the contrary, reclaim what he/she has paid within six months from the time when he/she paid what he/she lost. He/she may prove such payment by all means of claim by all proper means (proper means may include payment advise, receipts, bet slips, etc).

There are also media regulations that corporations must strictly adhere to when it comes to gambling advertisements.

These regulations are in place to ensure that advertisements do not offend God, Islamic beliefs, or spreading of information that may prejudice children, women, or any other social categories, and provoke violence and hatred.

Online Gambling and Its Legal Consequences in the UAE

According to Article 38 of Federal Decree-Law No. 34/2021, the law aims to curb online gambling by imposing strict penalties on those involved in the creation, management, or operation of websites that facilitate unauthorized gambling.

Individuals found in violation of this law are subject to detention and could incur fines between AED 250,000 and AED 500,000, underscoring the UAE’s commitment to eliminating online casinos activities in the UAE.

Also, in the UAE, the Telecommunications Regulatory Authority has put in place an “Internet Access Management” policy.

This policy requires internet service providers to block access to websites that provide illegal content or content that goes against the moral or public norms of the UAE.

As a result, gambling-related content is generally blocked from being viewed on the internet in the UAE, so you’ll probably will not have access to betting sites.

Media and Internet Access

First, gambling companies in the UAE are bound by content regulations established by the UAE Media Regulatory Office.

Websites and Video games content are classified based on their appropriateness for different age groups, and their content must adhere to established guidelines such as respecting the divine entity,

Islamic beliefs, monotheistic religions, and other beliefs, and not offending any of them under Article 17 of Federal Decree by Law No. (55) of 2023 Concerning Media Regulation. Violations could result in bans and hefty fines within the UAE.

Second, the Telecommunications Regulatory Authority enforces an Internet Access Management policy, obligating Internet service providers to block access to websites featuring illegal or culturally inappropriate content. This policy extends to blocking access to gambling-related content on the internet in the UAE.

These regulations are in place to ensure that advertisements do not offend God, Islamic beliefs, or spreading of information that may prejudice children, women, or any other social categories, and provoke violence and hatred.

Exceptions and Permissible Activities

The Civil Transactions Law outlines exceptions to Contracts of hazard (gharar) that entail betting and some gambling related activities:

1. Article 1012 defines these contracts as an agreement where one party commits to paying a sum or providing an item upon achieving a set goal.
2. Article 1013 of the Civil Transactions Law, permits Competitions with prizes in areas such as running, shooting, sports, and preparation for trails of strength, provided conditions like specified bets and clear objectives are met.
3. Article 1019 of the Civil Transactions Law, allows outcomes to be paid by contestants or third parties to winners, except when the parties agree that the winner shall be entitled to a prize from the other party, as this results in gambling.

These have been the backbone on which activities such as lottery draws (Emirates Draw and Mahzooz Draw), horse and camel racing betting, muscle building related bets were permissible in the UAE.

Gamble in Dubai & Laws

Engaging in gambling activities in Dubai will result in punishments.

The UAE is not just stopping gambling in casinos, they also take aim at it online too and the law cracking down on online gambling.

Through Article 38 of Federal Decree-Law No. 34/2021 on countering rumours and cyber-crimes “The Cyber Crime Law” provides legal justification for cracks down on websites promoting unauthorized gambling.

Whoever creates, manages or supervises a website, or uses information network to broadcast, transmit, disseminate, re-disseminate, or promote practicing of gambling faces serious consequences, including detention and fines ranging from 250,000 to 500,000 dirhams.

This law doesn’t specifically provide the consequences for individuals engaging in online gambling and mostly focuses on creators and disseminators.

However, this doesn’t mean that those found guilty don’t fall under the ambit of the UAE Penal Code to face punishment.

Legal Status of Gambling in Dubai and other Emirates in The UAE

Despite the fact that Gambling is current strictly prohibited in Dubai and across all Emirates in the UAE.

And this prohibition extends to all kinds of gambling, including but not limited to, casinos, online gambling platforms, and informal gambling gatherings.

Since September 2023, there was a positive move towards the legalization of gambling (commercial gaming) in the UAE, this was evident with:

1. The establishment of a regulatory body for gambling called the General Commercial Gaming Regulatory Authority (GCGRA) which is yet to be fully operational.
2. The agreement of the Emirate of Ras Al Khaimah to develop a casino project in Ras Al Khaimah.
3. The government’s attention and move to cater to a growing population seeking casinos in Dubai.
4. Begun processing licenses for various forms of gambling: including licenses for Lotteries, Internet Gaming, Sports Wagering, and Casinos, signaling the authority’s operational status.

These recent discussions about potentially legalizing gambling and establishing regulatory bodies suggest a possible shift in perspective, yet the current legal framework strictly penalizes gambling activities to protect societal values and legal order.

Keep an Eye On

The UAE is setting up a tightly controlled gambling industry.

Expect tough licensing, age checks (likely 21+), and separate gaming facilities.

To promote responsible gaming, credit use might be banned, limits could be set on losses and playing time, and even certain game types might be restricted.

Advertising will likely be controlled too, and some highly addictive games could be off-limits entirely.

The UAE’s gambling sector is a potential goldmine, but it’s not without risks. Here’s what investors need to know:

• New Rules, New Game: Regulations are still being written, so expect uncertainty about exactly how things will work.
• Government Caution: Be prepared for a slow and strict approach from the government. Patience and following the rules are key.
• Public Pushback: Not everyone will be happy. Some may oppose gambling for religious or social reasons. Strong responsible gaming measures can help.
• Tax Time: Factor in a 5% VAT and a potential 9% corporate tax when planning your finances.
• Security Matters: High security standards will likely be required to combat crime and protect players’ data.
• Social Responsibility Counts: Be prepared to implement programs that address gambling addiction and potential social issues.
• Insurance Up Your Game: High insurance coverage might be mandatory to protect everyone involved.
• Clean Money Only: Strict anti-money laundering measures will be enforced.
• Deep Pockets Required: Meeting minimum capital requirements will ensure financial stability.
• Keeping an Eye on You: Expect surprise inspections from the government to make sure everyone’s playing by the rules.

Furthermore, it’s essential to recognize the potential involvement of various regulatory bodies beyond the GCGRA, including the Federal Tax Authority, Immigration authorities, UAE Police, Central Bank of the UAE, Dubai Virtual Assets Regulatory Authority (VARA), Free zone authorities like Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA), and Dubai International Financial Centre (DIFC)’s Dubai Financial Services Authority (DFSA), as well as local municipalities.

This multi-agency approach is particularly relevant due to the intersection of gaming with technologies such as blockchain, AI, Web 3 developments (e.g., metaverses), cryptocurrencies, virtual assets, data protection, and cybersecurity.

In conclusion, gambling is currently illegal throughout the UAE and the penalties for engaging in or facilitating gambling activities are significant.

While there have been recent discussions about potential legalization, the legal framework remains firm in upholding the country’s social values and religious principles.