Gaming revenue in the United Arab Emirates (UAE) could generate as much as $6.6 billion annually, which would beat Singapore, according to a recent study by Bloomberg.
The emirates are moving closer to legalizing gambling. In September the UAE created the General Commercial Gaming Regulatory Authority (GCGRA), which will establish the regulatory framework for casinos operating within the seven emirates.
Because it is a federal authority, it will be operated by Abu Dhabi. So far, however, the timeline has not been announced.
Each of the emirates will be able to decide whether to allow gambling within its borders.
The Koran forbids gambling, so most Moslem nations do not allow it. But the UAE is looking at casinos as a way to increase tourism.
Zana Jablan Musa, an analyst with the Sovereign Group, told Al Arabiya English, “There are expected to be a number of positive effects, from domestic and international tourist attraction, longer vocational stays in the region, to additional incentives for bringing events to the area.”
This, she said, “will potentially allow casinos to operate while docked and this could be a game changer and very attractive to cruise liners. This will help bring in significant revenue, following the model of Singapore, where gambling contributes a notable percentage of GDP.”
It could lead to “significant” tax revenue, she said. Sharing the wealth with residents will be necessary to counter the negative perceptions associated with gambling, she said.
Last month Wynn Resorts said it expects to get a license soon to operate the $3.9 billion casino resort at Ras Al Khaimah.
Musa said she expected to see the UAE publish regulations within three to six months.
