UAE authorities warn of risks from unlicensed lottery and gaming activities

Abu Dhabi: The UAE Gaming Regulatory Authority has issued a stern warning about the serious risks of engaging in unlicensed lottery and gaming activities in the country.

These risks include fraud, scams, financial losses, and deception. The General Commercial Gaming Regulatory Authority (GCGRA) reiterated that the UAE enforces stringent laws against unlicensed gambling activities, which are classified as “suspicious activities” and are punishable by law.

The GCGRA urged the public to stay cautious and avoid participation in illegal gaming activities, highlighting the severe consequences of getting involved with unlicensed operators.Authorities also made it clear that participating in or promoting such activities is illegal and could result in severe penalties, including fines and imprisonment.

Legal lottery

Recently, the country’s sole lottery licence has been granted to The Game, LLC, which operates as The UAE Lottery. This is the only lottery licence permitted under the GCGRA regulatory framework, the authority said.

Within this framework, only Big Ticket and Dubai Duty Free - airport draws, are authorised to continue operations under the supervision of the GCGRA.

What are commercial games?According to the GCGRA, “commercial games” refers to any game that involves chance, or a mix of chance and skill, where money (or its equivalent) is wagered with the aim of winning a larger sum or valuable items. This includes gaming machines, online games, skill-based electronic games, lotteries, and bets on events like sports or horse racing.

Gaming and penalties 

The GCGRA clarifies that games involving a combination of skill and chance still fall under the definition of commercial games. Even if skill is involved, these activities are regulated and licensed by the authority.Engaging in or facilitating commercial gaming activities without a valid licence is illegal, the GCGRA stated. Those who operate, participate in, or promote such activities are subject to legal action, including criminal penalties.

This applies to both online and physical locations offering unlicensed gambling.

The risks involved

The GCGRA highlighted several risks associated with unlicensed gaming operators:

For Consumers: Participants in unlicensed activities may face legal repercussions. They also risk exposure to fraud and financial loss, with no legal recourse to recover lost funds.

For Businesses: Operating without a license can result in heavy fines, business closures, and severe damage to a company’s reputation.

The authority identified six key risks associated with unlicensed gaming:

Lack of Consumer Protection: Unlicensed operators do not provide legal protections or recourse for unfair treatment or non-payment.

Financial Loss: Without the requirement to follow fair gaming practices, unlicensed operators may manipulate outcomes and use deceptive tactics, leading to significant financial losses for players.

Fraud and Scams: These illegal operators often request sensitive personal and financial information, which can be exploited for fraudulent purposes.

Cybersecurity Threats: Engaging in unlicensed gaming increases the risk of malware, phishing attacks, and other cybersecurity threats.

Reputational Damage: Involvement in illegal gambling activities may lead to regulatory or criminal investigations, damaging personal and professional reputations.

Increased Crime: Unlicensed gaming is often linked to other criminal activities such as money laundering, fraud, human trafficking, and organised crime.