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'No legal protection': UAE warns residents against joining unlicensed lotteries, gambling

The authority listed six key risks associated with illegal gaming operators; prevailing laws also list fines of up to Dh50,000 for gambling

Published: Mon 9 Dec 2024, 11:21 AM

Updated: Sat 21 Dec 2024, 5:36 PM

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Engaging in unlicensed lottery and commercial gaming activities in the UAE exposes participants to significant risks, the country’s gaming regulator has warned. These include fraud, deception, and financial loss.

Unlicensed commercial gaming is illegal for both operators and players. In a consumer advisory, the General Commercial Gaming Regulatory Authority (GCGRA) said the UAE enforces strict laws against unauthorised gambling operations. "Participating in or promoting such activities is illegal and punishable under UAE law, including penalties such as fines and imprisonment."

Prevailing laws list fines of up to Dh50,000 for gambling and at least Dh100,000 and up to 10 years in jail for running a place for gambling.

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The authority listed six key risks associated with unlicensed gaming operators:

  1. No consumer protection: Illegal operators do not offer legal recourse for unfair treatment or non-payment.
  2. Financial loss: Unlicensed operators are not required to follow fair gaming practices, which can lead to manipulated game outcomes, deceptive tactics, and significant financial loss for players.
  3. Fraud and scams: Illegal entities frequently require sensitive personal and financial information, which can be misused for fraud.
  4. Cybersecurity threats: Participation in unlicensed gaming exposes individuals to cybersecurity risks, including malware and phishing attacks.
  5. Reputational damage: Involvement in illegal gaming can lead to regulatory or criminal investigations.
  6. Increased crime rates: Unlicensed commercial gaming can be linked with other illegal activities such as money laundering, fraud, human trafficking, and organised crime.

The GCGRA has advised consumers to verify a gaming operator's licensing status on its website before participating. It also urged them to avoid sharing personal or financial information on unverified platforms.

'Stay vigilant'

Kevin Mullally, CEO of the regulatory body, said the GCGRA is committed to ensuring a safe and legal gaming environment in the UAE.

He urged consumers to "stay vigilant and informed, to protect yourself from the risks associated with illegal gaming. Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators. These unlicensed businesses have not had their technology or games independently evaluated for fairness or security," he explained.

"They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences. Similarly, advertisers, payment processors, and other service providers that support these businesses risk sanctions and potential consequences affecting their ability to operate in the UAE."

Report illegal operations

The authority has urged consumers to report unlicensed operations to enforcement@gcgra.gov.ae.

As reported by Khaleej Times, the GCGRA has licensed five companies so far. Hotel and casino operator Wynn Resorts has a land-based gaming facility licence for its property coming up in Ras Al Khaimah's Al Marjan. Abu Dhabi-based The Game LLC has the licence to operate The UAE Lottery. The GCGRA has awarded gaming-related vendor licences to Aristocrat Technologies Europe (Holdings) Ltd, Smartplay International Inc and PayBy Technology Projects LLC.

As of December 9, the GCGRA has not issued Internet gaming or sports wagering licences.

According to the regulator, engaging in, conducting or facilitating commercial gaming activities without a valid licence is illegal and will lead to severe penalties, including criminal ones. "This prohibition extends not only to commercial gaming operators but also to individuals employed by operators or engaging in such activities, as well as third parties providing products or services related to this industry. Consumers who play via unlicensed operators, whether online or at a physical venue, are also engaging in illegal activities and may equally be subject to penalties."

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