The prospect of the United Arab Emirates (UAE) becoming a regulated gambling market is sparking significant interest among investors, particularly with the recent announcement from Ixia Capital. Spearheaded by a cadre of seasoned veterans in gaming and finance, this new venture capital fund is setting its sights on “high-growth” gambling enterprises from the seed to Series A stage. Over the next five years, the fund aims to support and launch more than 25 startups within the realms of online gaming, Web3, crypto, and blockchain sectors.
Ixia Capital CEO and venture partner Mona Motwani expressed high hopes for the opportunities in the UAE, a region poised to introduce regulatory frameworks for gambling soon. “While it is unclear what the regulations will look like, this is one of the most promising regions and operators are already all geared up. The future of gambling in the UAE is indeed very bright,” Motwani told iGB.
In a significant move this past September, the UAE established the General Commercial Gaming Regulatory Authority (GCGRA) to lay down a regulatory framework for both the national lottery and commercial gaming. According to Motwani, these developments signal that a legal casino market in the UAE is imminent and potentially transformative. “The legal casino market is going to be a massive thing in the UAE,” she said.
Although Ixia Capital is a global fund, the focus of its first phase targets the UAE, India, and Africa, regions where the team’s core expertise lies. Motwani herself brings substantial experience to the table, having spent seven years at Sportradar, leading government relations on the Indian subcontinent. Her portfolio is complemented by partners Tyler Dean, Imran Bukhari, and Biren Gala.
Tyler Dean hails from a robust VC fund background, with a history of advising and managing multiple venture capital and growth equity funds across diverse industries in the United States. Imran Bukhari, with a strong foundation in tech development, served as a software consultant for Bet365 for seven years. His company, NE Group, has delivered various solutions for igaming operators in Africa, including 888’s African joint venture, 888bets. Biren Gala brings a decade of private equity funding experience from his tenure with Mayfair Equity Advisory in the UK.
Ixia Capital’s U.
.S.-based venture studio arm, Ixia Studio, has already made several investments and is preparing to launch a suite of projects. Among them are FasFas Games, a Sports NFT Trading Exchange, a gaming loyalty rewards platform, a sports investment thought leadership platform, and a sports coverage and games engagement app. While Ixia has chosen not to disclose further details on these projects for now, Motwani emphasized that some investments via Ixia Studio are on the brink of going live.
“We are interested in both B2B and B2C [start-ups],” Motwani explained. “We are excited to explore the projects which are unique and a combination of esports, gaming, Web3, crypto, blockchain.”
Supporting Ixia’s optimistic outlook for the UAE’s gaming market, a June report from investment firm and real estate experts CBRE predicted the arrival of regulated gaming in the region soon. The report indicated that the decriminalization of gaming in the UAE could come through a Federal Decree or amendments to the criminal and penal code, in line with the increasing activity and public commentary in the region.
“Decriminalization of gaming will likely take the form of a Federal Decree or legislative changes to the criminal and penal code. Given the increase in activity in the region and in public company commentary, we anticipate these legislative changes to be forthcoming in the next few months,” the report stated.
CBRE further suggested that a well-regulated online gaming environment in the UAE could be established quickly, thanks to the current easy access to illegal or gray market online gaming providers via VPN or proxy. “We suspect cleaning this up will be a major priority for the GCGRA,” it added.
In a parallel development, Wynn Resorts is in the process of developing an integrated resort in the Emirate of Ras Al Khaimah, slated for completion by 2027. The establishment of such major projects underscores the potential that many stakeholders see in the UAE’s emerging gambling market.
The stage is set, and stakeholders from various sectors are poised for what could be a paradigm shift in the UAE’s approach to gambling. With Ixia Capital’s targeted investments and strategic focus, the next few years promise to be transformative for both new and established players in this rapidly evolving industry.
