Home Gaming Industry InsightsNorth Africa’s Online Betting Market Lacks Licensing Frameworks

North Africa’s Online Betting Market Lacks Licensing Frameworks

by Sienna Marques
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North Africa's Online Betting Market Lacks Licensing Frameworks

Lottomatica's recent move to acquire Cirsa, announced on September 2, marks a significant shift in the gambling landscape, bringing four Moroccan casinos into one of Europe's largest listed gambling companies. Despite Morocco contributing around 2% of Cirsa's revenue and roughly 4% of its earnings, neither company plans to pursue an online betting license in North Africa, shining a light on the growing divide in the region's gambling market.

While land-based gambling can draw international investment, online betting remains limited in Morocco. Cirsa expanded its operations in Marrakech last November, yet opportunities for private online betting are nonexistent due to regulatory constraints. According to Cirsa's IPO prospectus, "Online gaming only exists for betting, which is operated by a state agency," with online casino games explicitly prohibited.

This issue extends to neighboring Tunisia and Egypt, where governments have prioritized prohibition and enforcement over establishing online markets for private operators.

In Morocco, sports betting—including online betting and virtual events—is solely managed by the state-owned Marocaine des Jeux et des Sports (MDJS), which is 90% government-owned and chaired by the sports minister. Under a 2016 agreement that remains unpublished, MDJS’s exclusivity reportedly extends to 2036, and its operations are governed by a management contract rather than a conventional license. Any unauthorized gaming activities are deemed criminal offenses under the penal code.

MDJS has taken legal action against offshore betting. On January 12, the Casablanca commercial court ordered major telecom operators to block access to 19 specified betting sites, imposing a daily penalty of MAD10,000 for non-compliance. However, this order was swiftly stayed by the commercial court of appeal on January 26, which later annulled the initial ruling by February 12, ending the penalties. MDJS may still appeal the decision.

The director general of MDJS, Younes El Mechrafi, highlighted the financial implications of offshore betting during a parliamentary sports forum in December, estimating illegal sports betting stakes reached around MAD3.5 billion in 2024, costing the state approximately MAD700 million.

Turning to Tunisia, the existing gambling regulations are entrenched in Decree-Law 74-20 from October 1974 that confines lawful sports betting to the state-run Promosport, while pari-mutuel horse racing is overseen by the Agence Tunisienne de Solidarité. Currently, two competing bills concerning online gambling are under consideration, yet neither includes a viable licensing framework.

A private members' bill introduced on January 20 by 23 deputies proposes to amend the 1974 decree-law to prohibit all forms of online gambling. Supported by MP Yasser Gourari, the proposal outlines severe fines and prison sentences for violations, describing online gambling as a "social scourge" with potentially dire consequences for individuals facing financial hardship.

This bill has stalled after an initial review on February 3. Concurrently, the government has been drafting a new gambling and sports betting bill, with the sports minister announcing in November 2024 that consultations have been circulated to various public bodies. The revised draft aligns with international standards regarding sports betting integrity and anti-money laundering measures, although it remains unpublished, leaving unclear whether it will allow for the licensing of private operators.

Meanwhile, Egypt’s gambling legislation, established under Law 8 of 2022, primarily pertains to physical establishments and does not provide for online betting licenses. Enforcement efforts intensified in October 2024 when prosecutors froze e-wallets and mobile lines linked to betting agents. In February, officials announced plans to block nearly 80% of betting applications by the month’s end.

In May, Ahmed Badawi, chair of the House communications committee, revealed intentions to revise the anti-cybercrime law to explicitly address online betting, considering severe penalties for grave violations, although no official bill has surfaced. A separate proposal introduced by MP Martha Mahrous in January 2025 sought stiff penalties for betting promoters, but this too has made little progress.

As parliamentary sessions resumed on October 1, the issue of online betting legislation remains unresolved, with no steps taken towards creating a framework for private licenses.

The licensing gap in North Africa's betting markets is becoming increasingly evident. In Morocco, MDJS seeks court intervention to maintain its monopoly, while Tunisia wrestles with conflicting legislative approaches and Egypt opts for strict enforcement instead of exploring licensing pathways for online operators. All three countries currently have no available licensing route for private online betting.

The stark contrast between land-based and online gambling is clear, with established casino frameworks attracting international investment yet leaving private online betting outside the law. The extent of the unregulated online market remains ambiguous, with MDJS estimating this at MAD3.5 billion annually—making it the only publicly mentioned figure. Without proper licensing, these markets are difficult to regulate, tax, or supervise. As governments clamp down on offshore activities, they struggle to address the underlying demand for private online betting.

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