The UAE is located on the Arabian Peninsula in the Middle East, bordering Saudi Arabia and Oman. The UAE’s stance on gambling laws remains intensified due to its policies based on the country’s Islamic background. However, the UAE is also on the cusp of some evolutionary changes within the scope of its betting laws and especially when it comes to the bookmakers and sport betting. This paper will purpose to give comprehensive parameters which encompass UAE bookmakers/ UAE sports betting & the regulations bearing on them.
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Table of Contents
Summary of Key Events
History of Gambling Laws in the UAE
The UAE has always been particularly strict with the ban on gambling, which originates from the Islamic religion’s considerations of gambling as unlawful or prohibited activities – “Maisir”. In the past it has meant that all gambling in general and bookmakers and sporting betting in particular have been strictly illegal by law.
Key Legislation
- 1971: At the formation of the UAE there wasn’t a particular legislation on gambling, but the UAE did not take a very liberal approach towards it. The prohibition was nearly 99% cultural more so religious.
- 1990s: Penal Code of the UAE Federal Law No. 3 of 1987 consolidated into one text also prohibited gambling, albeit not stated as a comprehensive ban on gambling.
- 2021: Federal Decree Law No. 31 of 2021 further affirmed the prohibited of gambling and provided stiff penalties for those who are involved or participate in or facilitate gambling.
UAE Bookmakers: Regulatory Framework
However, whereas land based gambling enterprises are prohibited, there have been some rather positive signs to some extent in the direction of the legalisation of some form of betting especially that which is culturally ingrained in the local society like horse and camel racing.
Federal Decree-Law No. 31/2021
- According to the law, gambling is defined by the agreements in which the losing party has to provide the winning party with the specified sum of money.
- Penalties range from imprisonment that can take up to a period of two years or a fine not exceeding fifty thousand United Arab Emirates Dirham.
- The currently running gambling places attract imprisonment for a term not exceeding 10 years and fines more than AED 100,000.
Bookmakers Regulatory Agencies
A new regulatory body known as the General Commercial Gaming Regulatory Authority (GCGRA) was established in the UAE recently, which might signal changes in the regulatory outlook. The GCGRA is responsible for fostering the social and legal appropriate gaming environment in Great Britain.
Key Responsibilities
- Deal with the regulation of activities in a more synchronized manner within the United Arab Emirates.
- Control the licensing for the approved games activities.
- The necessity to adhere to as high standards as possible and the prevalence of strict guidelines.
UAE Bookmakers Gambling Licenses and Fees
Currently there is no provision for one to apply for licences as far as the traditional forms of gambling are concerned. Although, there is the underlying understanding, that should the current legal climate alter, licenses are likely to be as in other regions.
Potential Licensing Structure
- Application Fees: Priced within the estimate bracket of AED 50,000 and AED 100,000.
- Annual Fees: It could also be ranging from AED 200,000 and AED 500, 000 in the case of more elaborate operations.
Bookmakers Gambling Taxes
At the moment, given that traditional gambling is unlawful, there is no prevailing taxation on the earnings from gambling. Of course, if the legislator wants another result, it is quite natural to assume the existence of a systematic tax regime.
Hypothetical Tax Structure
- Corporate Tax: potentially up to fifteen to twenty per cent of the gross of gamin revenue.
- Special Levies: Other surcharges could be implemented for the purpose of introducing the social costs factor.
Prohibited and Allowed Bets
Prohibited Bets
- Card playing, slot machines, roulette and other types of games of chance like a casino.
- Virtual casino systems and new ways to gamble online.
Allowed Bets
- Gambling on camel racing and horse racing as per to the government permits.
- Some other cultural related events may also have certain exception rights.
UAE Sports Betting
Gambling of which sports betting and UAE Bookmakers is a part still remains illegal. Nevertheless, practices like the betting on camel racing indicate that there might be more cultural opening up in the future amendments of laws.
Sporting Milestones
- 1990: This team also qualified for the FIFA World Cup UAE national football team.
- 2005: The UAE national football team has headed to the victory of the Kirin Cup.
- 2007: This event was the 36th annual meeting of the Pan Arab sports event and it took place in the United Arab Emirates.
- 2018: The football fans got a good news when the UAE national football team qualified for the prestigious FIFA World Cup.
- 2022: Ras Al Khaimah signed a deal for several billion for investment with Wynn Resorts to potentially include sports betting aspects.
Conclusion
In conclusion, it is imperative to say that although UAE still reinforces the ban on gambling, the creation of the GCGRA indicates possible changes in the legislations. The super-rich must, therefore, ensure that they follow these changes, as there might be legally acceptable avenues opening up very soon.
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