How the United Arab Emirates Is Building Its Very Own Las Vegas – Skift Travel Podcast

Skift Take

Authorities in the United Arab Emirates are tight-lipped about the country’s plans for its emerging gambling industry, but gaming could be lucrative, a topic we discuss in this episode of the Skift Travel Podcast.

Rashaad Jorden

Gambling has long been taboo in the United Arab Emirates, but officials in the country are quietly developing a multi-billion-dollar gaming industry, a topic Skift recently examined in depth.

Middle East Reporter Josh Corder discussed what he discovered about the UAE’s efforts to establish gambling with Editor-in-Chief Sarah Kopit and Head of Research Seth Borko in this episode of the Skift Travel Podcast.

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Key Points

Secrecy and Timing in the UAE’s Casino Industry: The casino industry in the UAE is being built behind the scenes. The government is waiting for everything to be ready before legalizing gambling officially, creating an “avalanche” effect when it launches. This secrecy, including the unreleased Federal Law on gaming, has frustrated analysts but appears strategic in timing.

Foreigners as the Target Market: With 80% of the UAE’s population being foreigners, the casino industry is mainly targeting non-Emiratis. Advertising rules hint that locals won’t be the focus. Operators like Wynn and MGM are targeting markets from India, the GCC, Europe, and potentially China.

Heavily Regulated Gambling: The UAE will impose strict regulations on gambling, inspired by Singapore’s model. Regulations will include responsible gaming measures like voluntary exclusion lists, ID requirements, and advertising restrictions. Gambling will likely be kept separate from traditional Emirati culture to maintain local values.

Economic Importance of Ras Al-Khaimah (RAK): RAK, one of the lesser-known emirates, will be the first to host a casino, with Wynn’s resort being a cornerstone of its economic strategy. This project is expected to significantly boost tourism and property values, positioning RAK as a crucial player in the UAE’s gaming industry.

UAE’s Diversified Approach to Tourism: The UAE is developing a multi-faceted tourism strategy, with Dubai known for luxury shopping, Abu Dhabi for sports and events, and RAK for gambling. This integrated approach encourages tourists to experience multiple emirates, enhancing the overall appeal of the UAE as a destination.

Episode Summary

The casino industry in the United Arab Emirates is being developed quietly, with little public disclosure. Despite ongoing preparations, including gaming licenses, the UAE hasn’t yet officially legalized gambling. The secrecy stems from the UAE’s cautious approach, aiming for a sudden, large-scale launch rather than a gradual introduction. Cultural sensitivities and religious considerations are driving this cautious rollout, with the UAE’s leadership aiming to balance modern economic development with traditional values.

The UAE’s casinos will likely cater primarily to foreigners, as advertising restrictions and cultural sensitivities suggest Emirati locals will not be the target market. Analysts are frustrated by the lack of transparency, but investor confidence surged when Wynn received its gaming license. Ras Al Khaimah, one of the lesser-known Emirates, will host the first casino as a test case, positioning itself as a hub for luxury gaming and tourism.

The industry is expected to be heavily regulated, similar to Singapore, with strict controls on advertising and responsible gaming practices. The UAE is balancing its desire to become a global gambling destination with its cultural and legal frameworks. The success of these projects could influence other global gambling hubs, potentially shifting high-end travelers from places like Macau and Las Vegas.