The Sharia-ruled United Arab Emirates (UAE), which has begun work to regulate the gaming industry and paved the way for the country to become the first Gulf country to legalize casinos, is setting up a new structure to create a regulatory framework for the lottery and commercial gaming sector, tourism FM has learned.
Jim Murren, the former CEO of American hospitality and entertainment company Mgm Resorts International, will chair the new structure, while Kevin Mullally, who has nearly three decades of experience in the gaming industry, will be the chief executive officer of the new organization, which will coordinate regulatory activities and manage licensing at the national level.
Allowing gambling in the country, which is governed by Sharia law, would be a significant change, as gambling is currently prohibited and punishable by a fine or up to two years in prison. The country is also trying to compete with its Gulf rivals in tourism. Last month, US casino and hotel operator Wynn Resorts said it would build a $3.9 billion gaming resort in the UAE and expected to receive a license soon.
Angela Hanlee, senior gaming and hospitality analyst at Bloomberg Intelligence, calculates that the UAE could generate $6.6 billion a year in casino and gaming revenue. If the UAE's gaming revenue reaches 1.6 percent of the country's national income, as in Singapore, it could exceed $6 billion. The opening of casinos could further strengthen the tourism sector, which is the main pillar of the UAE economy.