Breaking in Dubai | Mahzooz & Emirates Draw vying for National Lottery License | Who will win the bid?

The United Arab Emirates has often mesmerized the world for its major lottery wins. People becoming millionaires overnight has been a recurring aspect of  the frequent lottery stories emanating from Dubai. But seems like such stories will have to wait for now, as two of the leading private companies - Emirates Draw and Mahzooz, who gave millionaires after millionaires every week are halting operations until further notice. This development is a result of the formation of the UAE's General Commercial Gaming Regulatory Authority (GCGRA) which is said to have come up with changes in regulations governing them.

Both have now applied for the national lottery license hoping to get it but only one of them will, as per a report in Khaleej Times. The report also stated that both the operators have confirmed that the application process for the National Lottery licence has been completed and that regulators are currently conducting a thorough process to select the best applicant for the national lottery licence.

In a statement to this journalist, Mahzooz said, " In compliance with applicable commercial gaming regulations, Mahzooz has temporarily paused operations from January 1st, 2024. The pause is a result of an industry-wide mandate consistent with the Regulators’ new role to create a well-regulated gaming environment in the United Arab Emirates."

“In compliance with the new directives from the UAE Gaming Regulatory Authority (GCGRA), we are temporarily pausing our activities in the UAE starting January 1, 2024, to work on exciting upgrades,” Emirates Draw said in a late night announcement on the New Year’s Eve.

When asked about resumption of operations, Mahzooz said they may resume their mission of "changing people’s lives" in the first quarter of 2024 with a new, improved and supercharged Mahzooz if they are successful in their bid for the National Lottery license.

Websites of both Emirates Draw and Mahzooz have posted information and FAQs regarding various questions on the minds of their existing and prospective customers. 

As per a report in the National, "A UAE resident who won a Dh25,000 ($6,800) monthly payout for 25 years has been assured his prize money is safe despite all operators being instructed to pause business from Monday."

Paul Chader, head of commercial at Emirates Draw said in a statement that they are happy with the new development. 

“We are very pleased with the introduction of the General Commercial Gaming Regulatory Authority, assuring all our customers that we will be showing a duty of care towards the protection of all their prize awards outstanding," read his statement.

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Mahzooz have also assured that all existing winners will be paid in full. "In the past three years we have conducted 161 lives draws, crowned 66 millionaires, and awarded more than AED 500,000,000 in prize money to over 2 million winners. The 64 millionaires as well as the rest of our winners except for the two newest millionaires who won AED 10,000,000 each at the last draw of 2023, have all been paid in full," read a statement from Mahzooz. 

It further added that the latest two millionaires will be paid, as per the usual procedures within 2 to 3 weeks, depending on the progress of our stringent KYC process and the winners’ submission of the required official documentation. Mahzooz said that unlike other draws opting for annuity payments, their winners enjoy an immediate lump-sum payout. The company assured that apart from the latest two millionaires (winners of the last draws’ top prize), 100% of the millionaires have successfully received their well-deserved prizes, adding that the latest millionaires will receive their prizes imminently exactly like all our previous winners, in full, within two to three weeks of their win. Mahzooz said that the winners of smaller prizes, will not be affected by the operations pause. They will be able to withdraw their credit as per the usual procedure.