The Shifting Sands of Sports Betting in the Middle East

The Middle East has traditionally had a reputation for religious and cultural conservatism, which has resulted in nations shunning all forms of gambling.

However, the need to diversify their oil-reliant economies has forced them to reconsider their stance towards sports betting.

Read on as we analyse how the industry is taking shape in the Middle East.

The UAE Leads the Charge with Regulatory Reform

The United Arab Emirates (UAE) turned heads when it established the General Commercial Gaming Regulatory Authority (GCGRA) in September 2023.

News that the notoriously conservative country had established a federal body to develop a regulatory framework for commercial gaming sent ripples across the Middle East.

Even though the term ‘gaming’ was open to interpretation, there was no confusion when former Missouri Gaming Commission chair Kevin Mullally took charge of the GCGRA.

The GCGRA will set the standards for gaming operations in the country, handling every crucial component from licensing to taxation and oversight. They will pave the way for gambling operators to offer their services within defined boundaries.

Experts posit this is part of plans to attract high-end tourism and global investment to bolster the economy. The ongoing $3.9 billion Wynn Resorts project in Ras Al Khaimah is the perfect example of this large-scale investment and ambition.

Its incorporated casino will lay solid foundations for gambling to take off in the UAE. Sports betting will play a crucial role in the new landscape.

Saudi Arabia is Curious but Remains Cautious

The tone is more cautious in Saudi Arabia. However, the country is also gradually warming to the iGaming phenomenon.

Under the vision of Crown Prince Mohammed bin Salman, the kingdom has undergone significant cultural and economic changes with a focus on liberalism.

Entertainment, sports and tourism have all felt the sweeping impact of these changes, but gambling is still technically prohibited under the Islamic law that rules the land.

However, experts believe the Saudi authorities have quietly allowed international betting operators into the kingdom to market to local gamblers.

Many Saudi Arabian residents already use international betting sites for Arabic players and the numbers are expected to increase over the next few years.

While most players are interested in fantasy sports and predictive gaming, others also engage in traditional forms of betting and gambling.

This delicate approach has allowed Saudi Arabia to enjoy the economic benefits of the ever-expanding betting industry without facing backlash from social and religious factions.

Saudi Arabia is dipping its toes into the social and economic waters. All signs point to a full-fledged dive further down the line.

The kingdom has invested in Newcastle United, its domestic Saudi Pro League and the LIV Golf competition. They have also hosted numerous sports events and the eSports World Cup.

Fully-fledged legal betting with sportsbooks and a regulatory framework may still be far away, but investment in sport generally triggers increased interest in wagering.

A Mixed Bag Across Other Gulf States

The progress on sports betting has been quite inconsistent and dominated by domestic politics elsewhere in the Middle East due to influence from religious authorities.

Most Gulf Cooperation Council (GCC) countries have banned gambling, but enforcement and interpretation are not straightforward.

For instance, Qatar has refused to concede an inch. Despite hosting the 2022 World Cup, gambling is not allowed.

Many people thought hosting the event and boasting a world-class hospitality sector could convince them to revisit the conversation to legalise or regulate betting for locals or visitors. The country remains committed to Sharia Law, and there is no sign of change, at least in the short term.

Kuwait is arguably the most conservative nation in the Middle East. They ban gambling and censor or block online platforms and apps that promote betting.

Experts have nearly given up on seeing any change in Kuwait, despite some of their neighbours softening their stance towards digital entertainment.

Bahrain’s gambling laws, which ban the activity, do not mention prohibiting online betting. However, telecommunication regulators in the country are ordered to block gambling websites.

Behind closed doors and on smartphone screens, residents bypass restrictions using Virtual Private Network (VPN) software to access foreign betting apps.