Home Gaming Industry InsightsLottomatica and Cirsa Deal Highlights North Africa’s Online Betting Licensing Issues

Lottomatica and Cirsa Deal Highlights North Africa’s Online Betting Licensing Issues

by Sienna Marques
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Lottomatica and Cirsa Deal Highlights North Africa's Online Betting Licensing Issues

Lottomatica's recent announcement on September 2 regarding its plan to acquire Cirsa marks a significant development for the gambling landscape in North Africa, especially with the inclusion of four Moroccan casinos into one of Europe's predominant gaming companies. Currently, Morocco contributes around 2% to Cirsa's overall revenue and approximately 4% to its earnings.

Despite the merger, neither Lottomatica nor Cirsa has indicated intentions to pursue an online betting license in North Africa, underscoring the existing disparities in the Moroccan gambling market. While land-based gambling has successfully attracted foreign investment, exemplified by Cirsa's expansion in Marrakech last November, online betting remains unregulated due to the absence of a licensing structure.

According to Cirsa’s IPO prospectus, the situation in Morocco is quite restrictive: "Online gaming only exists for betting, which is operated by a state agency," the document states, adding that online casino games "are not allowed."

This restrictive landscape is mirrored in Tunisia and Egypt, where governments have prioritized prohibition over the establishment of online markets for private operators.

Within Morocco, sports betting, including online formats and virtual events, is exclusively managed by the state-owned Marocaine des Jeux et des Sports (MDJS). The MDJS is predominantly state-controlled, with 90% of its shares owned by the Treasury and chaired by the sports minister. Its exclusive rights reportedly extend until 2036, as per a 2016 convention with the State. Instead of a conventional license, its operations are conducted under a tendered management contract. Unauthorized gaming activities, including unregulated lotteries, are subject to criminal proceedings per articles 282 to 285 of the Moroccan penal code.

In a bid to combat offshore betting, MDJS sought legal intervention. On January 12, the Casablanca commercial court imposed restrictions on Maroc Telecom, Orange Maroc, and Inwi to obstruct access to 19 specific betting sites, penalizing non-compliance at MAD10,000 daily. However, this order was short-lived; on January 26, a commercial court of appeal stayed the original ruling. Subsequently, the court annulled MDJS's claim and lifted the daily penalty as reported by Medias24. MDJS retains the option to appeal this decision.

MDJS’s actions followed warnings about the financial repercussions of offshore betting. During a parliamentary sports forum in December, MDJS's director general, Younes El Mechrafi, disclosed that illicit sports betting stakes could reach about MAD3.5 billion in 2024, with potential losses to the state approximating MAD700 million, divided between the national sports development fund and the Treasury.

Turning to Tunisia, the legal framework for gambling is grounded in the Decree-Law 74-20 from October 1974. Presently, sports betting is the sole lawful activity conducted by the state-run Promosport, while horse-racing betting is overseen by the Agence Tunisienne de Solidarité.

The Tunisian parliament is currently contemplating two competing approaches towards online gambling, although neither has established a licensing framework. A private members' bill, 2026/009, was introduced by 23 deputies on January 20 and subsequently referred to the General Legislation Committee on January 29, aiming to amend the 1974 decree to ban all online gambling and mandate internet and payment providers to block it.

One of the proponents, MP Yasser Gourari, emphasized the societal dangers of online gambling, describing it as a "social scourge" and expressing concern over individuals facing despair due to gambling losses. The proposal carries penalties for offenders, with fines ranging from 10,000 to 500,000 dinars and incarceration of one to five years, increasing for repeat offences or cases involving minors.

Despite its initial consideration on February 3, the bill appears stalled, as no further actions have been taken by the committee. Meanwhile, Minister of Sports Sadok Mourali stated that an alternative gambling and sports betting draft bill had been distributed for public consultation, involving 26 institutions including the central bank and financial intelligence authority. A year later, he mentioned that the draft was revised to align with international standards on sports betting manipulation and money laundering, yet it remains unpublished, leaving the potential for private operator licensing ambiguous.

In Egypt, gambling regulations largely cater to physical establishments. Law 8 of 2022 restricts gambling activities exclusively to non-Egyptians. Currently, there is no licensing structure for online betting. In October 2024, the former prosecutor-general ordered the freezing of e-wallets and suspension of mobile lines linked to betting operations. In February 2025, officials indicated efforts to block around 80% of betting applications by month-end.

In May, House communications committee chairman Ahmed Badawi announced plans to amend the anti-cybercrime law to explicitly include online betting, with severe penalties suggested for the most serious violations. A separate bill proposed by MP Martha Mahrous in January 2025 advocates prison sentences and heavy fines for promoters and payment facilitators but has yet to advance.

As of July 22, parliament has approved 162 laws without addressing betting regulations; electronic betting remains on the agenda for future discussions. Currently, Egypt's approach leans more towards punitive enforcement rather than establishing a licensing pathway for private online betting.

In summary, the absence of a licensing route for private online betting unifies the three North African markets despite their distinct approaches. Morocco has its state-controlled monopoly defending against offshore competition in court, Tunisia continues to grapple with contradictory measures aimed at either prohibiting or regulating online gambling, and Egypt’s focus lies in stringent enforcement actions. Each of these nations faces challenges in addressing offshore demand while maintaining a legal online betting environment, marking a stark contrast to the more open frameworks surrounding land-based gambling, where international investments flourish. The extent of the illegal online betting market remains difficult to ascertain, but MDJS predicts it at around MAD3.5 billion annually, with no comparable public figures available for Tunisia or Egypt. Without a viable licensing route, the potential for effective regulation, taxation, or oversight remains limited, as governments struggle to suppress offshore operations while demand persists unchecked.

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