Lottomatica's recent acquisition agreement with Cirsa, revealed on September 2, is set to integrate four Moroccan casinos into one of Europe’s leading publicly traded gambling entities. Cirsa generates approximately 2% of its revenue and about 4% of its earnings from its operations in Morocco.
Despite this significant move, neither Lottomatica nor Cirsa have plans to pursue an online betting license in North Africa. The agreement sheds light on the existing gaps within Morocco's gambling market.
While land-based gambling attracts foreign investment, the situation for online betting is markedly different. Last November, Cirsa expanded its footprint in Marrakech, yet the regulatory framework for private online betting remains non-existent.
Cirsa's IPO prospectus clearly notes, "Online gaming only exists for betting, which is operated by a state agency," highlighting that online casino games are not permitted in Morocco.
Similar challenges are present in Tunisia and Egypt, where government policies have focused on prohibiting online gambling rather than facilitating market access for private entities.
In Morocco, state-owned Marocaine des Jeux et des Sports (MDJS) monopolizes sports betting, including online and virtual events. MDJS is predominantly state-controlled, with 90% ownership held by the Treasury and managed by the sports minister. The exclusivity of MDJS reportedly lasts until 2036, based on a private 2016 agreement with the government. Unregulated gaming operations are classified as criminal offenses under the penal code.
To combat unlawful online betting, MDJS has sought judicial action. On January 12, the Casablanca commercial court ordered Moroccan telecommunications companies such as Maroc Telecom, Orange Maroc, and Inwi to block access to 19 specified betting websites and local payment providers, imposing a daily penalty of MAD10,000 for non-compliance. However, this order was subsequently stayed by the commercial court of appeal on January 26 and ultimately annulled in a ruling on February 12, which also lifted the penalty. MDJS retains the option to appeal this decision.
The directive followed MDJS officials raising concerns about the financial ramifications of unregulated betting. Younes El Mechrafi, MDJS's Director General, indicated in December that illegal sports betting stakes could reach around MAD3.5 billion in 2024, costing the state an estimated MAD700 million in potential revenue for sports development and the Treasury.
In Tunisia, the existing gambling regulations are grounded in a decree-law from October 1974, allowing only state-run operations, such as Promosport for sports betting. Parliament is currently considering two differing proposals concerning online gambling, but neither has established a licensing process.
A proposal introduced on January 20 by a group of 23 deputies seeks to amend the 1974 law to explicitly ban online gambling, demanding internet and payment service providers block access. Proponent Yasser Gourari expressed concerns over the societal impacts of online betting, referencing the desperation it causes among individuals suffering from financial losses, leading some to contemplate suicide.
However, progress on this bill has stalled after just one parliamentary review on February 3. Meanwhile, the sports minister, Sadok Mourali, noted in November 2024 that a draft gambling and sports betting bill had been shared for consultation across various public institutions but has yet to be unveiled.
In Egypt, gambling laws are primarily aimed at physical gambling establishments. Law 8 of 2022 restricts gambling to non-Egyptians, with no framework established for online betting. The approach has shifted towards enforcement, with the prosecutor general ordering the freezing of e-wallets linked to betting agents in October 2024 and aiming to block approximately 80% of betting applications by the end of February 2025.
Ahmed Badawi, chair of the House communications committee, suggested amendments to enhance the anti-cybercrime laws to explicitly refer to online betting, potentially prescribing life imprisonment for severe infractions. A private member's bill proposed by MP Martha Mahrous in January 2025 likewise seeks significant penalties for promoting unauthorized betting online but has not progressed.
Parliament adjourned on July 22 after passing 162 laws without addressing betting regulations, leaving digital betting issues pending for further discussion when the House reconvenes on October 1.
Despite different paths taken in addressing gambling regulations, a persistent licensing gap for private online betting exists across Morocco, Tunisia, and Egypt. The region's governments are primarily employing blocking and enforcement strategies while overlooking opportunities to harness the potential of regulated online betting markets. The case of the unlicensed market remains opaque, as MDJS’s estimates of MAD3.5 billion annually stand as the sole reference point for illicit betting in Morocco, with no similar data available for Tunisia or Egypt. As it stands, the lack of a lawful licensing framework continues to hinder the regulation of online gambling, leaving governments to grapple with the complexities of controlling demand in an unregulated environment.
