Lottomatica's announcement on September 2 to acquire Cirsa includes four Moroccan casinos, positioning Lottomatica within one of Europe's largest gambling groups. In 2024, Morocco contributed approximately 2% to Cirsa's revenues and around 4% to its earnings.
Despite this major deal, neither company has plans to pursue an online betting license in North Africa. This situation underscores the significant discrepancies in Morocco's gambling market, where land-based operations can attract international investments, such as Cirsa’s expansion into Marrakech last November, but private online betting lacks a clear pathway for licensing.
Cirsa's IPO prospectus clearly states that in Morocco, "Online gaming only exists for betting, which is operated by a state agency," highlighting that online casino games are prohibited.
Tunisia and Egypt face similar restrictions in their gambling landscapes. Both governments emphasize prohibition and strict enforcement rather than developing online markets for private operators.
In Morocco, the state-owned Marocaine des Jeux et des Sports (MDJS) oversees all sports betting operations, including online wagering and virtual events. MDJS is largely government-owned and has exclusivity that reportedly extends until 2036 under an undisclosed agreement from 2016. It operates through a management contract rather than a licensing structure, making unauthorised gambling houses and lotteries illegal under articles 282 to 285 of the penal code.
To combat offshore betting, MDJS took legal action against internet service providers. On January 12, a Casablanca commercial court ordered Maroc Telecom, Orange Maroc, and Inwi to block access to 19 specified betting websites and local payment intermediaries, imposing a fine of MAD10,000 per day for non-compliance.
However, this ruling was short-lived as an appeals court granted a stay on January 26, and by February 12, the court annulled the initial order, ending the penalties. MDJS has the option to appeal this decision.
During this legal struggle, MDJS Director General Younes El Mechrafi cautioned about the financial implications of offshore betting, estimating illegal sports betting stakes at approximately MAD3.5 billion for 2024, leading to potential losses for the state valued at around MAD700 million.
In Tunisia, gambling regulation is based on a Decree-Law from October 1974, with the state company Promosport being the sole legal option for sports betting. The parliament is currently assessing two contrasting approaches to online gambling, but neither has resulted in a licensing system.
A private members' bill proposed by 23 deputies on January 20 seeks to amend the 1974 decree to ban online gambling altogether, imposing heavy fines and prison sentences for violations. Deputy Yasser Gourari expressed concerns over the societal impact of online betting, attributing it as a contributing factor to severe personal distress among gamblers.
Since the bill’s initial consideration on February 3, there has been no further action.
Simultaneously, a bill to regulate sports betting, which aims to align with international standards, is being developed but remains unpublished. It is unclear whether this new proposal would lead to licensing for private operators or continue to bolster Promosport's monopoly.
Egypt's gambling regulations are similarly limited, as the Law 8 of 2022 allows gambling only in physical venues and by non-Egyptians. There is no framework established for online betting.
Following the crackdown on illegal betting in October 2024, which led to the freezing of e-wallets associated with betting operations, Egyptian officials aimed to block a significant number of betting apps by that February. Proposed amendments to the anti-cybercrime laws are in discussion, which may result in harsh penalties for online betting offences.
Another private member's bill introduced in January 2025 proposed severe consequences for those facilitating or promoting online betting. However, it has not progressed in parliament.
Since the parliament's summer recess on July 22, no laws relating to betting have been passed, leaving electronic betting under consideration but without substantial discussion. The House is set to reconvene on October 1.
In summary, all three North African markets show a significant gap in licensing for private online betting. While Morocco defends its existing monopoly, Tunisia remains stalled with competing legislative proposals, and Egypt relies heavily on enforcement. The contrast with land-based gambling is stark, as casinos operate under recognized frameworks and attract investment, while private online betting remains outside legal parameters.
Current estimates of the underground market size remain elusive, with MDJS's assessment of approximately MAD3.5 billion annually being the only available figure. Without a licensing option, these markets pose challenges for measurement, regulation, and taxation, leaving governments to combat offshore betting demands through punitive measures instead of integrating them into a regulated framework.
