Dubai Holds While Abu Dhabi Moves Forward With Casinos

The United Arab Emirates (UAE) has been exploring the possibility of legalizing casinos, a move that is hoped would transform the country’s tourism industry. While Dubai, the glitzy city-state, has put its plans on hold, the emirates of Abu Dhabi and Ras Al Khaimah have emerged as frontrunners in the race to introduce casinos.

After the UAE established a framework for legalized gaming in September, Abu Dhabi and Ras Al Khaimah have taken the lead in considering the introduction of casinos. Abu Dhabi is currently mapping out the potential locations for a casino, with sites such as Yas Island and a plot near the city’s port being considered. Yas Island, known for its iconic attractions like Ferrari World and Warner Bros. theme parks, as well as the Yas Marina Formula One Circuit, presents a promising opportunity for a casino. On the other hand, Las Vegas-based Wynn Resorts Ltd. has already announced plans for a $3.9 billion integrated resort in Ras Al Khaimah, which is set to open in 2027.

While Abu Dhabi and Ras Al Khaimah are moving forward with their plans, Dubai has decided to delay the introduction of casinos for the time being. Despite discussions taking place over several months, senior government officials in Dubai concluded that gambling was not a priority due to the city’s already booming tourism sector. However, it’s worth noting that Dubai’s stance on casinos could change if circumstances evolve in the future. In the meantime, there are considerations of introducing a poker series in the city.

The introduction of casinos in the UAE would be a significant step forward, considering that Islamic, or Shariah law, is the main basis for legislation in the country. Gambling is currently prohibited under Islam and is illegal in the UAE, with offenders facing fines, imprisonment, or both. However, the UAE is considering granting each emirate one casino license, which would allow them to tap into the lucrative casino market while ensuring controlled growth.

The casino market in the UAE has the potential to surpass that of Singapore in terms of revenue. While the government has not defined a tax structure for the industry, benchmarking against Singapore suggests that the gaming revenue in the UAE could reach $6.6 billion. Additionally, the implied gaming outlay per tourist in the UAE may fall below that of Singapore and Macau, despite similar consumption power among tourists. The presence of crowded ultra-luxury hotels in Dubai indicates the potential for substantial revenue generation from the casino industry.

In Ras Al Khaimah, Wynn Resorts Ltd. has taken the lead by announcing its plans for a $3.9 billion integrated resort. The resort is set to open in 2027 and is expected to receive its gaming license soon. Other emirates, such as Abu Dhabi, have the authority to decide when and if they want to issue a license for a casino.

Abu Dhabi, the capital of the UAE, is carefully considering the potential locations for a casino. Yas Island, with its existing world-class attractions, is a prime candidate for hosting a casino. The island’s proximity to the Ferrari World and Warner Bros. theme parks, as well as the Yas Marina Formula One Circuit, makes it an ideal destination for tourists interested in entertainment and gaming.

Even if Dubai decides not to have a casino of its own, it can still benefit from the visitor traffic generated by casinos in Abu Dhabi or Ras Al Khaimah. The UAE has the potential to attract up to $6.6 billion in gaming revenue annually, eventually surpassing Singapore. The presence of renowned hotel groups and the recent formation of a gaming and lottery regulator indicates the country’s commitment to exploring the prospects of the casino industry.