Jimmy Haoula
Managing Partner jimmy.haoula@bsalaw.comNews
- Published: December 9, 2021
- Title: Wynn Resorts: RAK deal raises a few eyebrows
- Practice: Commercial, Corporate and M&A
The recent announcement by the American casino chain
Wynn Resorts to build an integrated luxury resort in Ras Al Khaimah with
multiple entertainment venues and a gaming center has sparked many questions
about the type of games that would be available in the Muslim-majority country
where gambling is forbidden. The announcement comes months after rumors circulated
about legalizing gambling clubs and permitting casinos in the UAE, where
current regulations prohibit the activity.
The Ras Al Khaimah Tourism Development Authority
(RAKTDA) announced the development of a “new administration” to manage the
operations of the emirate’s integrated resorts, including “entertainment
facilities.” The department would work “in accordance with best
practices and international standards used in organizing entertainment games
within integrated resorts, taking into account the emirate’s social, cultural,
and environmental dimensions in all relevant procedures, including licenses,
taxes, operational processes, and consumer rights,” according to the authority.
Speaking to TRENDS, managing
partner at BSA Ahmad Bin Hezeem & Associates LLP, Jimmy Haoula said the
resort’s announcement came as no surprise, as the UAE has positioned itself as
a key hub for investment in high-profile hospitality projects. He went on to say that the development of this
world-class facility would enhance the country’s strategies of attracting an
influx of tourists from around the world and contribute to its economic growth. “On a federal, emirate, and local level, the UAE
government, as well as regulatory and licensing authorities, have instituted
landmark changes to the law in several sectors,” explained Haoula.
“Now, the establishment of the ‘Department of
Entertainment and Gaming Regulation’ by the Ras Al Khaimah Tourism Development
Authority as a gaming regulatory authority will further develop the legal
framework to ensure security and protection of participants and the entire
community on a larger scale” he noted.
‘Games’ a reference to gambling?
Gambling is prohibited under Chapter VI of the UAE Federal Penal Code. “Anyone who plays gambling shall be penalized by imprisonment for a period not exceeding two years or a fine not exceeding fifty
thousand dirhams (13.6 thousand dollars) [sic],” according to Article 414 of
the penal code. In most cases, though, the term “integrated hotel” is
used to refer to a hotel with a casino — a gambling hall — inside of it.
However, it’s unclear whether the “gaming center” in
the new resort would incorporate cash betting and what the “integrated resort
license” would cover when it comes to this part. According to Omar Almasri, a corporate paralegal at BSA Ahmad Bin Hezeem & Associates LLP, there are currently no laws in the
UAE that directly relate to gaming. However, the potential legal challenge in cash
betting lies in the volume of transactions and the number of people who
participate, in addition to how cash is paid, collected, and distributed.
He told TRENDS that regulating the gaming industry was always crucial to ensure operational control and that gaming activities were conducted fairly, which safeguard participants
from fraud, unethical malpractice, deceptive techniques, or manipulation of
results.
“The UAE will always ensure the safety of its citizens and tourists alike, so there would be strict guidelines and regulations in place,” he said. It’s worth mentioning that the gaming activities and raffle contests such as Dubai’s Mahzooz and Abu Dhabi Big Ticket, whereby
participants enter a competition by making a specific purchase of a product or
a ticket to enter a draw for a chance to win prizes, are available in the UAE. Such activities, according to Almasri, are subject to prior approvals from the relevant regulatory department in the relevant emirate. For example, the Department of Economic Development authorizes and thoroughly regulates all gaming contests in Dubai.
In general, such gaming activities have been widely accepted in the UAE for some
time.
Read the original article Trends MENA.