The recent launch of Grand Theft Auto V in Saudi Arabia 12 years after it was first released is a landmark moment in the country’s history.
The blockbuster title from Rockstar Games is famous for its violence, criminal underworld dealings and adult themes. Many Middle Eastern countries unsurprisingly banned the game.
However, Saudi Arabia has allowed GTA V into its domestic market following a newly implemented 21+ age rating system and updated regulatory frameworks.
It is a massive milestone for gaming and a sign that the Gulf nation is willing to soften its traditionally strict content policies.
The development has industry experts wondering if the GTA V move could open the regulatory gates to other associated gaming sectors.
Prohibition to Regulation
Saudi Arabia’s General Authority for Media Regulation and the UAE Media Council announced a new classification system, including a 21+ category.
Subsequently, content that would have previously been banned before for showing drugs, sex and violence is now allowed.
Saudi gamers are getting the raw version of GTA V, with the elements that made it a worldwide favourite. However, they have removed the gambling and casino features.
However, there is a lot to dissect from that move. All the controversial elements remain in place except for this aspect. Saudi Arabia’s regulators are becoming more specific and nuanced.
Instead of rejecting every mature content, they treat each case individually. This seemingly minuscule change can allow previously banned video games to thrive in the region.
A Booming Market and a Missed Opportunity
Under the Vision 2030 project, the Saudi Arabian government has invested billions of dollars into eSports, game development and digital infrastructure.
Its Public Investment Fund (PIF) shelled out mouth-watering sums to buy stakes in renowned gaming firms, bidding to dominate the Middle Eastern scene with a market value projected to reach over $2.8 billion by 2029.
However, even though Saudi Arabia is betting big on gaming, the Gulf country is leaving money on the table by refusing to regulate online gambling.
Arab players in the region who want to enjoy casino games turn to offshore sites licensed by authorities in foreign jurisdictions.
While they can visit an online casino in Saudi Arabia, the tax revenue generated does not benefit the Saudi economy. The nation is losing considerable income without a regulatory framework to channel the funds to its coffers.
GTA Be the Trigger for Legal iGaming in Saudi
Removing the ban on GTA V is a power move that could be a benchmark for what is now acceptable in Saudi Arabia’s highly controlled entertainment space.
The announcement was a proper commercial rollout, telling the world that things once incompatible with local values are now available via state-regulated channels if they fit into the new framework.
Experts believe this growth can reopen discussions about other types of online gaming, such as virtual casinos or sports betting.
The fact that regulators only redacted the gambling interface of GTA V means regulators are segmenting by type instead of rejecting games altogether.
If gambling features are the only thing standing between a new release and approval, casino operators may push to seek legitimacy via a regulated, tax-compliant framework.
Challenges and Realities
Even the most optimistic experts know they must temper expectations. Gambling remains illegal in Saudi Arabia under its religious rules that have been in place for decades.
Shaking such a deep foundation by embracing legalised, regulated gambling and online casinos will require social tact. However, the unbanning of GTA V shows Saudi Arabia is no longer ideologically rigid.
Under Crown Prince Mohammed bin Salman, the country has made several progressive reforms to modernise the economy and society. Regulating gambling is the pragmatic next step, especially when there are considerable economic returns involved.
Saudi Arabia can manage public perception using modern oversight mechanisms such as age limits, content blocks and other responsible gambling tools.
Microtransactions, loot boxes and digital currencies are commonplace in video games, which has forced regulators across the globe to reexamine the lines between gaming and gambling.
It could potentially force Saudi regulatory authorities to develop new classifications for interactive gambling, especially if they are within a legal gaming framework.