New Jersey governor tours Gulf, offering advice on how to keep casinos in check

When it comes to regulating casinos, the Gulf could learn some valuable lessons from New Jersey.

That was the message Gov. Phil Murphy carried this week on a Mideast trade mission in which he signed a non-binding agreement to advise the UAE on how to both nurture and regulate its future gaming industry. The governor also visited Saudi Arabia and Bahrain.

Las Vegas-based Wynn Resorts plans to open the country’s first casino two years from now on an artificial island off the coast of the emirate of Ras Al Khaimah. The contract to build the $5 billion Wynn Al Marjan followed circulation of rules by the UAE last year to govern the nascent gaming industry, though casinos are still banned in most Islamic countries.

“Setting up the right governance structures is critical to ensuring the integrity of both the development of a casino project and its ultimate operations,” Murphy told The Circuit in an email. “We hope that the UAE regulators will take a similar approach as New Jersey did.”

Asked what the memorandum of understanding signed in Abu Dhabi on Tuesday would entail, Murphy said his state, which legalized casinos in its Atlantic City beach resort 48 years ago, could provide guidance on all aspects of the industry, including casino financing, construction and operations. The agreement also covers internet gaming, cybersecurity and consumer protections.

“We are building the future of gaming and hospitality in Atlantic City and all across New Jersey – and we are going to do so responsibly and sustainably,” said Murphy, 67, the state’s Democratic governor for more than seven years who was earlier a top executive at Goldman Sachs.

U.S. President Donald Trump, who will visit the UAE, Saudi Arabia and Qatar later this month, was Atlantic City’s most prominent casino owner during the 1980s, though his Trump Taj Mahal and two other resorts there later went bankrupt.

Casino owners see the UAE as a potential goldmine, with MGM Grand and other industry leaders seeking licenses to operate in the country. New Jersey’s total gaming revenue – which comes from casinos, sports wagering and the internet – reached $6.3 billion last year from $2.9 billion in 2018 when Murphy took office.

The agreement establishes a cooperative framework between the New Jersey Division of Gaming Enforcement and the UAE’s General Commercial Gaming Regulatory Authority.

The New Jersey agency works closely with State Police and prosecutors to enforce gaming laws – including the investigation of potential casino owners, auditing casino operations and testing slot machines and internet gaming platforms, Murphy’s office said.