The United Arab Emirates’ (UAE) decision to allow a casino developer to build its first integrated resort in the Middle East was massive news for the region.
Scheduled to open its doors in 2027, the luxurious Wynn Al Marjan Island will be ‘inspired by the tranquil seascape of Al Marjan Island, a group of four islands’.
The multi-billion-dollar project will boost the UAE’s bid to become a major global tourist destination and pave the way for similar developments in other nations.
Gambling has traditionally been prohibited under Islamic law in the Middle East, but several countries have moved to relax their stance in recent years.
This has opened the door for the operators listed at haz-tayeb.com/en/ to accept players located in the Middle East onto their sites.
Some nations are reportedly moving towards establishing a formal licensing and regulatory structure to further legitimise gambling activities in their jurisdiction.
With the UAE formed from a federation of seven emirates, creating a landscape where gambling is legalised presents a unique set of challenges.
There are not only federal laws to consider, but also what are effectively ‘state-level’ laws and regulations which will also need to be created.
India undoubtedly provides the UAE with a useful template it can follow to successfully formulate a viable licensing and regulatory system.
Their constitution lays down the division of powers between the union government and state government to legislate on betting and gambling.
This gives each state legislature the freedom to make its own laws – a system that could be applied to each of the seven emirates.
While this has led to debates over what constitute ‘games of skill’ and ‘games of chance’ in some states, it has helped gambling flourish in selected Indian regions.
However, one of the biggest hurdles India has placed in the way of gambling is it stance on foreign investment into gambling and betting.
Matters of foreign investment fall under the central government’s remit, and they prohibit any foreign direct investment in gambling firms operating in India.
Questions have been raised by the Reserve Bank of India (RBI) about some companies, although no formal legal action has been taken in this regard.
Although this clouds the situation in India, the UAE’s agreement with Wynn suggests they are adopting a vastly different approach when it comes to foreign investment inside their borders.
This may well pay significant dividends in the future, with several major gambling-related businesses considering taking advantage of the new opportunities offered by the UAE.