Inside the UAE gaming licence process: Fennica Gaming's certification journey
In a region long closed to gambling, the United Arab Emirates has recently broken new ground by establishing a regulated gaming ecosystem. To understand how this emerging sector is taking shape, SiGMA News spoke with Joni Hovi, a veteran of the lottery and gaming world, and Senior Vice President at Fennica Gaming, a Finnish company that recently became one of the first certified suppliers to the UAE’s new national lottery.
A new market with regional significance
“The most exciting thing,” Hovi said, “is that it is a new market.” The UAE now stands out as one of the first countries in the region to launch a regulated national lottery.
Other Muslim-majority countries, such as Morocco, Tunisia, and Malaysia, have explored regulated gambling. However, the UAE’s launch positions it as a potential regional leader, he explained.
“It can be run in a responsible, sustainable manner,” he argued. Demonstrating that, he suggested, could have ripple effects across the Gulf region. “When they do it right, when neighboring countries see that there is no harm, no conflict with society or local religion, then it can expand from there.”
A smooth licensing process
For Fennica Gaming, the journey into the UAE began with a certification process that, according to Hovi, was unexpectedly straightforward. “The interaction with the local experts was very professional,” he said. “Very clear, transparent. The whole process was extremely smooth from our point of view.”
In addition to the professionalism of the newly established UAE General Commercial Gaming Regulatory Authority (GCGRA), Hovi attributes the smooth process to Fennica’s strong track record of regulatory compliance. “We come from the Nordics, from Finland. We play by the book. We don’t compromise on integrity or security. We don’t operate in grey markets.”
Fennica Gaming was created in 2022 as a fully-owned subsidiary of Veikkaus, Finland’s national lottery operator. But despite that ownership, Hovi emphasised Fennica’s financial independence, as required by the law: “We don’t receive any financing from them. We started from scratch and have paid market price for everything we’ve acquired.” Such independence gives Fennica a unique hybrid identity, a public entity with private market agility.
Though unable to confirm how selective the General Commercial Gaming Regulatory Authority (GCGRA) has been, Hovi suspects the UAE is proceeding cautiously, and rightly so. “It’s only good that they are careful when screening potential suppliers.”
UAE taxation: a supplier’s view
Not everyone shares Fennica’s enthusiasm for the UAE. Some legal advisors have warned that current tax policies make the market unprofitable, especially for operators. Hovi disagrees, at least when it comes to suppliers.
“I would guess that opinion is coming from the casino or sports betting angle,” he said. “But for us, from the lottery perspective, it’s a solid business case.”
He stressed the importance of adapting to local rules, noting that Fennica customises return-to-player (RTP) models and payout structures depending on jurisdiction. “We have customers where the RTP is 50% by law, and others where it’s 88%. We adapt the mathematics to support the local requirements.”
To him, the UAE does not pose unusual challenges. “There are other jurisdictions, including in Europe, where taxation makes it much harder to turn a profit.”
A push for supplier licensing: necessary and inevitable?
The UAE’s decision to license not only operators but also suppliers, thereby sharing the burden of accountability, is also gaining traction in regulated markets, particularly in Europe. Hovi views this as a vital evolution.
“I only welcome the regulation,” he said. “It ensures that those operating in licensed environments are being checked. Financially solid, paying taxes, not involved in criminal activities: this is how the industry has a future.”
A philosophy that aligns with his background. Before his role at Fennica Gaming, Hovi co-authored the first sports integrity code of conduct for European lotteries and helped establish early monitoring systems that partnered with law enforcement and international sports bodies to counter match-fixing and fraud.
While he acknowledges that some regulators go “a little too far,” he insists that oversight is essential in a sector “where people can end up in vulnerable positions.”
A case study
For now, Fennica Gaming’s focus in the UAE is clear: supporting the national lottery as a certified supplier. “There’s only one license holder,” Hovi explained. “Our job is to support them in building a sustainable, responsible business.”
But the long-term view is broader. “This is a case study,” he said. “If it works, others may follow. And to me, that’s exciting.”
