iGaming share price movement since 2024 market open – EVO (+7.74%), ENT:L (-5.22%), PTEC:L (+5.52%), LNW (+10%) and 888:L (+4.22%). (Image by Pabitra Kaity at Pixabay.com)
The formal stage toward establishing a legal casino industry in the United Arab Emirates (UAE) was the establishment of a federal gambling regulator last year.
On September 3rd, 2023, the General Commercial Gaming Regulatory Authority (GCGRA) was officially established. Its job is to draft the laws governing commercial gaming and the national lottery in the United Arab Emirates. Even though the exact nature of the final regulations is still unknown, operators are already preparing for launch in the area.
Wynn Resorts is among these businesses, and the CEO (Wynn) has touted the United Arab Emirates as the most promising new market to emerge in decades.
Is gambling legal in the Middle East?
Historically, the Quran forbids Muslims from engaging in gambling. Nonetheless, there are casinos in nations where Islam is the most common faith, and there are many additional nations with casinos that target players from Muslim-majority nations with their marketing campaigns. Most Islamic scholars consider gambling, including playing in casinos, to be Haram (forbidden). Gambling is the exchange of money or other valuables based on chance, and it is viewed as a dependence on luck as opposed to sincere effort and hard labor.
Currently, there are casinos in Middle Eastern nations, including Egypt and Lebanon, that are open 24/7 and provide a variety of popular live games, table games, and slot machines, many of which you will find explained in our live games guide. Malaysia, a country with a large Muslim population, also permits gaming. Until the USD 2b Wynn Marjan Island Resort & Casino in Ras Al Khaimah is licensed, anyone caught gambling in the United Arab Emirates faces up to two years in prison and a fine of £10,699.
Gaming framework is still unclear
The GCGRA’s establishment is the next step toward the UAE’s regulated gaming sector. The GCGRA’s chief executive will be Kevin Mullally, who was most recently the executive director of the Missouri Gaming Commission. Mullally was employed by Gaming Laboratories International (GLI) for 17 years.
What will be allowed in the nation is still up in the air. It still needs to be determined if bettors and market operators would have access to an online component.
GLI has also received assistance with this work from a former gaming consulting and market research organization. Due to the consultant’s prior increased involvement in digital offerings, rumors exist that the UAE is planning to launch an online marketplace. These businesses advocated for federal government regulation of gambling rather than state-by-state authority over gaming. According to sources, the United Arab Emirates intends to impose a revenue tax of 25% on mass-market gaming. Meanwhile, there would be an 8% tax on premium gaming.
The Wynn resort still needs a license first, and it’s still being determined how/when this will be accomplished. The task of overseeing licenses falls to the GCGRA, and the Wynn CEO is confident that the paperwork will be finished before the resort opens. Expanding gaming in the Middle East has massive potential as this market remains relatively untapped.
Disclaimer: This is not investment advice, but just an overview of the latest hot gossip in the casino entertainment market and an update on stock prices for some of the most popular iGaming companies. For our previous report on 5. February 2024 please visit iGaming Stocks Update Issue 3 2024.
Evolution (EVO) – NASDAQ Stockholm – SEK
The court case against Evolution continues to create negative headlines, but the stock has moved upward. The litigation hasn’t stopped the share price from bouncing to new monthly highs. Not only did the gambling entertainment company report $1 billion in profits, as per our iGaming Stocks Update Issue 3 2024, the software provider also released its 2024 Evolution live casino game roadmap. Since the last report, the stock is up 10%, at a year-to-date high of 1,311.60 SEK.
- Current: 1,311.60 SEK
- 5 February 2024: 1,272.20 SEK
- 16-Day Gain/Loss: +39.40 SEK (+3.10%)
- 2024 Market Open: 1,217.40 SEK
- Yearly Gain/Loss (2024 Market Open): +94.20 SEK
- Yearly (%) Movement: +7.74%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
While there are some concerns from market analysts regarding Entain’s online growth, the company did enjoy a surge in Super Bowl betting a week ago. The company stated that Super Bowl betting had risen 12% over 2023 and that women betting on the game increased 217% (from 2020). This rise could be attributed to the partnership with BetMGM and its dominance in the U.S. betting market. The share price of ENT is currently trading at 934 GBX and is holding in a horizontal pattern.
- Current: 934.00 GBX
- 5 February 2024: 995.14 GBX
- 16-Day Gain/Loss: -61.14 GBX (-6.14%)
- 2024 Market Open: 985.40 GBX
- Yearly Gain/Loss (2024 Market Open): -51.40 GBX
- Yearly (%) Movement: -5.22%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech has started to bounce back to September 2023 levels. The turnaround has been gradual, and investors seem positive about the company’s future. PTEC extended its Sony Pictures deal to promote Who Wants to be a Millionaire? series (6 accompanying games) and an option to add more once the studios complete them. The stock is almost up 11% since the last report and is currently trading at 470 GBX.
- Current: 470.00 GBX
- 5 February 2024: 455.10 GBX
- 16-Day Gain/Loss: +14.90 GBX (+3.28%)
- 2024 Market Open: 445.40 GBX
- Yearly Gain/Loss (2024 Market Open): +24.60 GBX
- Yearly (%) Movement: +5.52%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder continues to make significant strategic steps in the global market by partnering with independent iGaming studios. The most recent transaction is with Crucible Gaming for a 5 game deal to reinforce its premier supplier status. The company’s share price has been up almost 10% in the last month and is currently trading at an all-time high of USD 89.71. Analysts’ consensus is that LNW will continue to breakout to all-time highs as the year progresses.
- Current: 89.71 USD
- 5 February 2024: 81.16 USD
- 16-Day Gain/Loss: +8.55 USD (+10.53%)
- 2024 Market Open: 81.56 USD
- Yearly Gain/Loss (2024 Market Open): +8.15 USD
- Yearly (%) Movement: +10.00%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
After stating last December that the full-year profit would be at the bottom end of analysts’ earnings expectations and the consequential drop in share price, the stock has climbed steadily. The stock has gained 17% in the last month but has flattened out in the last week. The stock is trading at 94.84 GBX, with strong resistance at 95.55 GBX.
- Current: 94.84 GBX
- 5 February 2024: 85.00 GBX
- 16-Day Gain/Loss: +9.84 GBX (+11.58%)
- 2024 Market Open: 91.00 GBX
- Yearly Gain/Loss (2024 Market Open): +3.84 GBX
- Yearly (%) Movement: +4.22%
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