Why do so many people in the UAE like to play the odds with lotteries?

There’s something unique I’ve observed during my time in the UAE. People here love playing the odds.

In a land known for its opulence, the Emirates’ fascination with lotteries and lucky draws is more than just a tantalizing game of chance; it’s a gateway to life-changing fortunes. From luxury cars to colossal cash prizes (going up to AED 100 million!), countless residents and tourists have seen their luck change. Their stories of unexpected riches highlight the possibility that, here, anyone could strike it rich. While rational thinking knows the house always wins, a part of you thinks, someone has to come out on top, and it could be me.

After all, where else are you going to dream big if not in the UAE?

An irresistible siren song

The UAE’s unique socio-economic landscape contributes to this phenomenon. With a significant population of expats that includes many blue-collar workers from countries like India, Pakistan, and the Philippines to name a few, the promise of lottery winnings is incredibly attractive.

Not to mention, lottery tickets are easy to procure and lucky draws are heavily marketed everywhere, from the airport to the supermarkets and malls. Ultimately, this combination of a diverse population seeking social mobility, tax-free winnings, and the country's grandeur-oriented culture makes lotteries a pervasive phenomenon in the UAE.

Paul Chader, head of commercial at Emirates Draw, shares that over the years, they've noticed shifts in participant demographics and engagement.

"Millennials now constitute a key demographic," he says, contributing it to their digital platform and interactive features.

"There is also a growing trend towards socially conscious participation, with a strong interest in initiatives that support the environment and community. Since our inception, there has been more than 25% increase in female participants."

To date, Emirates Draw has awarded over AED185 million in prizes to more than 900,000 winners worldwide.

Winner winner, chicken dinner

One traveller hit it big on his way back to Pakistan.

Abdul Wajid from Karachi came to Dubai on holiday with his parents in 2010. While walking through Dubai Airport on his way back, he saw a BMW X6 on display, as part of a Dubai Duty Free raffle draw. His mom and him bought two tickets while his dad laughed it off. They went back home and forgot all about it.

Screenshot of the letter informing the winner

"A couple of months later, we got a call from a Dubai Duty Free representative telling us that we've won and they'll be giving us two plane tickets and hotel accommodation to come collect the prize. Because we didn't live in Dubai, we opted to get cash instead and were able to use that money to put a down payment on an apartment in the city. It's still a source of passive income for me as I've rented it out," he said.

Is it even legal?

"Raffles and lotteries are both legal and highly regulated, falling under Law No. (5) of 2016 Regarding Promotional Campaigns & Special Offers for Commercial Advertising Purposes," shared Muhammad Ali Qureshi from Nasser Mallala Advocates.

Lotteries and lucky draws in the UAE are a fascinating mix of excitement, hope, and dazzling prizesShutterstock

He also explained the difference between the two.

"Raffles are a form of lottery where participants buy tickets, and winners are selected through a random draw. They are often used for fundraising or charity events, with the proceeds going to a cause, and winners typically receive prizes. A lottery is a game of chance where participants purchase tickets in hopes of winning prizes. These tickets have numbers, and winners are determined by a random draw."

Regulating the dream

In September last year, the UAE established a federal authority, the General Commercial Gaming Regulatory Authority (GCCRA), to create a framework for a national lottery and commercial gaming. The body aimed to appoint one organization as the national lottery operator by the first quarter of 2024, a license many were vying for.

Just last month, the license was awarded to The Game LLC, a commercial gaming operator specializing in game development, lottery operations, and gaming-related content.

Also read: UAE's first national lottery is here. Are casinos next?

On January 1, 2024, lottery games and draws across the UAE were suspended, such as Mahzooz, which claims to have created 66 millionaires since inception in 2020, and Emirates Draw while best practices were being developed.

The raffle draw operators continued, such as Dubai Duty Free and Big Ticket, the longest-running raffle draw in the region, which paused temporarily in April but is now up and running again. Companies, like Idealz, can also get creative, essentially running an e-commerce store and for every purchase made, the customer receives a complimentary Prize Draw ticket.

In a statement issued by Mahzooz via its managing operator, EWINGS, they shared:

"While this delayed decision is indeed disappointing, especially that we kept our workforce at full capacity for the past seven months in anticipation of a positive decision, we respect the selection process and the government’s commitment to setting standards within the industry."

All in all, whether it’s the aspiration for a better future or the adrenaline rush that accompanies a potential win, UAE’s lottery culture is more than just a gamble. It’s a testament to the human spirit of hope.