The market research company Global Industry Analysts Inc.(GIA) published a fresh new market study titled: Casino Management Systems (CMS) on 7 September 2021. According to this new study, today’s global casino market is benefiting from a set of post-COVID-19 circumstances. Also, it points out that certain countries represent a more fertile ground for this marketplace than others.
The Casino Market In MENA Countries
One of the most interesting aspects of the study by GIA is that the MENA region stands out in the global casino world for its fast-growing markets. Local policies seem to open a way to establishing the casino market in most MENA and Arab Gulf countries. Although Islamic laws don’t allow Muslims to gamble, authorities seem to turn a blind eye to gambling activities, especially online gambling. Lebanon, for example, can boast of having the oldest casino facility in the entire MENA region: Casino du Liban. Located just north of Beirut, Casino du Liban accounts for an average gross growth revenue (GGR) of $175 Million. The Casino is partially (10%) owned by the Lebanese Ministry of Finance in partnership with the Kuwaiti government which holds 3% ownership. It appears that there aren’t any restrictions for Middle East governments owning shares in casino companies.
But Cairo and Beirut aren’t the only Arab cities hosting sizable casino facilities. Dubai is a forerunner in the casino investment race. Dubai World invested $5.2 Billion into casinos in 2007. Istithmar World, another Dubai-based fund, invested high amounts in the Atlantis Paradise Island Resort in the Bahamas thus. The share is large enough for Istithmar World to be the owner of the casino facility within the resort.
This quick diffusion of land-based casinos in the Middle East region also explains the rapid growth of gambling websites in this area of the world. Most popular digital casinos like 888 Casino are expanding their pool of gamblers in Arabic speaking countries of the Middle East and Arab Gulf region. With several thousand online Arab gamblers, the global casino market is estimated to reach a volume of $11.4 Billion by the end of 2026. A large share of growth is due to the Arab users’ gambling activity.
The new casino market opportunities foretell huge potential profits. However, gaming developers and casino company owners should always keep a close eye on the threats they might incur when placing large investments in this industry.
Business Implications of Casino Expansion
It might sound strange, but gambling in Arabic speaking countries is not as unknown as one may assume. Some countries, like Egypt, do a good business thanks to their land-based facilities. There are more than fourteen casinos in Cairo that generate little more than $200 Million every year. The generous size of the casino gross gaming revenue in some MENA countries sounds like throwing an irresistible invitation to wealthy investors and large investment groups in the region.
Strictly speaking, land-based casinos aren’t for local residents. As such players must show a foreign passport to access the casino. However, many people hold dual citizenship in the Middle East. This allows Egyptians to gain entry to the casino by presenting their second passport. That is how locals bypass the casino restrictions and their participation in casino activities accounts for a high share of the local casino revenue annually.
However, also more factors contribute to making the fortune of the casino marketplace in the MENA countries. One of these significant factors includes the recent COVID-19 lockdowns. People stuck at home in lockdown are more likely to look for entertainment and free-time activities online. Also, the VPN service providers around the world recorded significant growth, which suggests that many Arabic speaking gamblers use VPNs to navigate through gambling sites anonymously. A study published by the University of Bristol in the May 2021 issue of The Journal of Gambling Studies reveals that online casinos experienced a huge boost during lockdown periods. The number of regular gamblers outpaced the previous year’s numbers by over six times! While this study focused on UK based online casinos, Arabic speaking gamblers can access these sites by simply a VPN to hide their location.
Changes In The Middle East Gaming Market
In light of the set of circumstances in the casino gaming market in the Middle East region, local governments may decide to reduce the current tax rates on casino operators. There may also be a push to work to integrate casino facilities in the Islamic culture of the local community. Gamblers from the Arab Gulf and MENA countries account for a large share of money spent on casino games all across the world. That’s why Arab governments should ensure that these gaming revenues remain in the local economy.
