The intersection of gaming and tourism: Dubai’s new frontier
The UAE has entered the gaming industry with the launch of GCGRA and a lottery license issued in 2023. This shift is expected to boost Dubai's tourism and short-term rental markets, driving higher re
The United Arab Emirates (UAE), renowned for its award-winning holiday destinations, innovation, and record-breaking achievements, has recently ventured into the gaming industry. The establishment of the General Commercial Gaming Regulatory Authority (GCGRA) in 2023 marked a significant milestone for the UAE, positioning it as a potential gaming hub in the Gulf region.
In July 2024, the GCGRA publicly launched its website, which had previously been password-protected. It has already issued its first license for a UAE lottery to The Game LLC, a commercial gaming operator specializing in game development, lottery operations, and gaming-related content. This landmark decision positions the UAE as the first Gulf state to legalize gaming, signifying a notable shift in the economic and entertainment landscape.
“The launch of the UAE Lottery is a pivotal event that not only establishes a disciplined world-class regulatory framework for lottery activities but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE.”
Jim Murren, chairman of the GCGRA, emphasized in a press release
But how does this development impact Dubai’s thriving tourism industry, especially in the realm of short-term rentals?
The GCGRA board comprises global experts from diverse backgrounds, ensuring the success of gaming development and making valuable contributions to tourism and the economy. Chairman Jim Murren, drawing on his achievements at MGM in Las Vegas, leads the board. Vice Chair Chris O’Donnell brings extensive real estate and investment experience, spanning both Australia and the UAE. Mark A. Lipparelli, another board member, chairs the International Centre for Responsible Gambling, underscoring the authority’s commitment to promoting responsible gaming practices. Globally recognized CEO Kevin P. Mullally has consulted for governments globally to assist in developing, studying, and implementing gaming policies for over four decades.
Why Their Experience Matters
The UAE gaming success hinges on the board and management’s multifaceted expertise. Having learned from relevant markets and with a comprehensive perspective that includes real estate and other critical sectors, they are well-prepared to navigate the challenges and seize the opportunities presented by this new venture.
Linking Gaming and Tourism
Dubai’s tourism sector has been on an upward trajectory, welcoming 9.31 million international visitors in the first half of 2024 alone puts the city on track for a record performance in 2024. With its strategic location bridging Asia, America and Europe Dubai is already a top tourist destination. With its venture into gaming, GCGRA is positioning the city as a gaming hotspot, drawing in additional visitors.
Short-Term Rentals: A Winning Bet
As the demand for short-term rentals continues to rise, property owners stand to benefit. According to data from AirDNA, Dubai currently has 18,913 available properties in the short-let market. With fewer properties available, the ability to achieve higher financial returns increases. As gaming enthusiasts flock to Dubai, the demand for accommodations will surge, potentially driving up rental prices. Property owners who invest in short-term rentals now or already own such properties are poised for remarkable returns. As Dubai solidifies its position as a gaming destination, property rent may spike, offering substantial ROI.
Global Gaming Hotspots: A Comparison
The UAE’s emergence as a gaming destination places it in the same league as global giants like Las Vegas, Macau and Monte Carlo. The highly anticipated Wynn Al Marjan Island is poised to be the first to receive a gaming license1. Scheduled to open in early 2027, the $3.9 billion resort will host a casino twice the size of the one in Wynn Las Vegas, positioning this UAE casino among the top 10 largest worldwide2. Alongside Wynn, other contenders are similar mega resorts such as Atlantis Dubai and the upcoming MGM Dubai, which is currently being built3.
The CDC Gaming Report estimates that UAE casinos have the potential to generate up to $8.5 billion in revenue4. This projection assumes Wynn’s active participation among the casinos opening across the UAE. The region’s gaming market is on the cusp of significant growth, and The UAE’s allure as a global gaming hub continues to captivate investors and enthusiasts alike.
Act Now: Short-Term vs. Long-Term
Property owners, take note: The time to act is now. Invest in short-term rentals and ride the wave of The UAE’s gaming revolution. Don’t get stuck in long-term commitments; the future is dynamic, and Dubai’s gaming scene promises exciting opportunities. Whether you’re a seasoned investor or a first-timer, Dubai’s fusion of gaming and tourism beckons you to play your cards right.
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