DUBAI: The General Commercial Gaming Regulatory Authority (GCGRA) has issued a stern advisory to all UAE residents, warning of the serious risks associated with unlicensed lottery and gambling activities.
This caution comes as the government continues to enforce strict laws against illegal gaming, emphasising that these activities, whether online or at physical locations, carry significant legal and financial consequences for both operators and participants.
The GCGRA, which oversees all legal commercial gaming activities in the UAE, highlighted that engaging with unlicensed operators could result in exposure to fraud, scams, financial losses, and other serious risks. With gaming activities involving substantial financial stakes, the authority cautioned the public about the potential for deceit, as unlicensed operators are not required to follow fair play regulations or offer consumer protection.
Strict legal framework
Under the UAE’s current legal framework, all forms of gambling, including lotteries and commercial games involving wagers, must be authorised by the GCGRA. Any unlicensed lottery or gambling operation is deemed illegal, and the penalties for participation or promotion of these activities can be severe. Individuals caught engaging in illegal gaming may face fines, imprisonment, and in some cases, both.
The GCGRA further clarified that while the country permits certain licensed lottery activities, such as The UAE Lottery operated by The Game LLC, all other unlicensed gaming operations are illegal. The authority reminded the public that only a select number of lotteries, including Big Ticket and Dubai Duty Free airport draws, are legally authorised to operate under the GCGRA's supervision.
Types of illegal gaming
The GCGRA defines "commercial games" as activities involving chance or a combination of chance and skill, where participants wager money or items of value for a chance to win. This broad category includes games of chance, gaming machines, online games, skill-based electronic games, and even bets on sports and other events.
According to GCGRA regulations, even games that combine skill with chance are still regulated under the umbrella of commercial gaming. As such, any game that requires a license to operate must be authorised by the GCGRA, and all unlicensed gaming operations are prohibited.
The risks involved
The GCGRA outlined six major risks linked to participating in unlicensed gaming:
- Lack of Consumer Protection: Unlicensed operators do not adhere to fair gaming practices and fail to offer legal recourse for players who experience unfair treatment or are denied payouts.
- Financial Loss: Without regulatory oversight, there is a high risk of game manipulation, with players potentially losing significant amounts of money.
- Fraud and Scams: Unlicensed operators often request sensitive personal and financial information, which can be misused for fraudulent activities.
- Cybersecurity Threats: Engaging with unlicensed gaming platforms exposes individuals to various cyber threats, including malware, phishing attacks, and data breaches.
- Reputational Damage: Individuals involved in illegal gaming may face regulatory scrutiny, damaging their personal and professional reputation.
- Increased Criminal Activity: Unlicensed gaming is often linked to organised crime, money laundering, and other illicit activities.
Penalties for participation
The GCGRA made it clear that the UAE enforces strict penalties for those found violating gaming laws. Participants in unlicensed activities risk hefty fines, criminal charges, and potential jail time. Those who promote or facilitate illegal gaming operations can also face severe penalties, including a fine of up to Dh50,000 and jail time for running illegal gambling establishments.
In a further warning to advertisers, payment processors, and other third parties who support unlicensed gaming businesses, the GCGRA emphasised that their involvement could lead to sanctions, affecting their ability to operate within the UAE.
Legal and approved operators
The GCGRA has granted the UAE’s sole lottery licence to The Game LLC, which operates The UAE Lottery. This is the only authorised lottery under the UAE’s gaming laws. Additionally, the government has permitted long-standing lotteries such as Big Ticket and Dubai Duty Free airport draws to continue operating.
For the first time, the GCGRA has also issued licences to several gaming-related vendors, including Aristocrat Technologies, Smartplay International, and PayBy Technology Projects, enhancing the nation’s expanding gaming sector. However, as of now, the authority has yet to issue licences for online gaming or sports wagering.
Public awareness and reporting
Kevin Mullally, CEO of the GCGRA, urged the public to stay vigilant and only engage with licensed operators. He stressed that consumer protection and security are paramount, and warned of the dire consequences that could arise from participating in unregulated activities. The GCGRA has also set up a dedicated email address, enforcement@gcgra.gov.ae, for individuals to report unlicensed operators.