Advancements in technology since the turn of the century have helped the global gaming industry become one of the biggest growth sectors on the planet.
Video gaming has undoubtedly been at the forefront of the boom, particularly through the mainstream success of Xbox and PlayStation consoles.
However, associated sectors such as iGaming have also played a massive role in helping gaming become a mainstream entertainment pastime worldwide.
Casino games such as online blackjack have become part and parcel of daily life in numerous jurisdictions having traditionally been viewed as being out of reach to the masses.
Their popularity has intriguingly triggered societal changes in several regions where gambling games had previously been frowned upon.
For instance, while the United States is renowned for iconic gaming destinations such as Las Vegas, many other areas of the country were previously reluctant to jump on the bandwagon.
The landscape has changed significantly in recent years following changes to the legislation governing online gambling. A similar shift is underway in the Middle East.
The United Arab Emirates (UAE) has been quick to recognise the possibilities, establishing a new regulatory body which has been tasked with overseeing the industry.
The UAE has developed a solid framework to regulate gambling activities within its borders, and this is proving to be a massive game-changer for its entertainment sector.
With clear guidelines in place, the UAE is attracting foreign investment with relative ease, and other nations may be forced to follow in their footsteps to ensure they are not left behind.
These include Saudi Arabia, which has embraced gaming but remains resistant to iGaming. They have focused on gaming and eSports, but betting is still a taboo subject.
Saudi Arabia has made its intentions clear with the number of major investments and initiatives it has committed to the gaming industry.
The Public Investment Fund (PIF) has been a major driving force behind the growth of the gaming sector across Saudi Arabia.
Through its subsidiary Savvy Games Group, the PIF has committed $37.7bn to gaming initiatives, a move approved by Saudi Arabia’s Crown Prince Mohammed bin Salman.
Savvy’s goal is to accelerate the Kingdom’s growth as a gaming hub by fostering local talent, developing infrastructure and establishing strategic partnerships with global gaming companies.
The company has already made its mark as one of the top ten gaming companies in the world in terms of revenue, but are still making moves to make sure their position is secure.
Savvy recently strengthened its investment in the video gaming sector by increasing its stake in Japan-based Koei Tecmo.
It also raised its stake in Nintendo in 2023, making it the largest foreign investor in the Japanese gaming company. Utilising local talent in game development is a priority for the firm.
Industry leaders are already embracing the move. Niantic and XSolla have partnered with Savvy to create talent academies that will support the regional ecosystem.
However, the Saudis appear to be missing a trick where iGaming is concerned, particularly given that numerous operators already have a foothold there.
They operate under licences issued by regulators in other gaming jurisdictions, which results in Saudi Arabia missing out on taxation revenues from the industry.
The UAE’s willingness to diversify into iGaming may ultimately force the Saudis into action, and could ultimately be the catalyst for the Middle East becoming a major player in the sector.