Questions & Answers
Establishing a lottery company: Is it possible, and how?
Dear Sir/Madam,
I want to establish a lottery company in Dubai.
Can I do so, and what is the legal procedure for establishing a lottery company?
Dear Questioner,
According to UAE law, gambling and lotteries are strictly prohibited in the country. Therefore, it is not possible to legally establish a lottery company in Dubai or anywhere else in the UAE.
The legal procedure for establishing a company in the UAE involves obtaining a trade license from the Department of Economic Development (DED) in the respective emirate.
However, as lotteries are not allowed, the DED is unlikely to issue a trade license for a lottery company.
Furthermore, the UAE Penal Code also criminalizes any form of gambling, including lotteries, with penalties ranging from fines to imprisonment.
Therefore, attempting to establish a lottery company in the UAE could result in legal consequences.
It is important to note that there are some exceptions to the gambling laws in the UAE, such as the Dubai World Cup horse race and certain activities in designated free zones. However, these exceptions do not apply to lotteries.
In conclusion, it is not possible to legally establish a lottery company in Dubai or anywhere else in the UAE. It is important to comply with the laws and regulations of the country to avoid any legal issues.
Dear Questioner,
In the Western legal concept, lottery companies cannot be established in the UAE.
However, there is another legal framework that allows the establishment of a company to offer prizes to individuals through the purchase of goods, followed by periodic draws according to the prizes specified by the company, subject to obtaining the necessary permits from the relevant authorities in this matter.
Dear Questioner,
Generally, lotteries and raffles are illegal in the UAE according to Article 415 of the Penal Code. However, certain lotteries and raffles are allowed in the UAE.
As such, we have identified the need for further clarifications and detailed explanations.
Our firm offers complimentary consultations to assist you with your legal concerns, which can be conducted online in a free 15-minute session.
Please contact us via email or call our offices in Dubai or Sharjah.
Jasim Al Haddad Law Firm
Legal Counsel and Consultations
