An amendment proposed by the majority and the General Confederation of Moroccan Enterprises (Confédération Générale des Entreprises Du Maroc ,CGEM) to the 2025 Finance Bill targets income earned on foreign gambling and betting sites. It is proposed to apply a withholding tax on these winnings.

In addition to this measure, a special solidarity contribution of 2% will be levied on winnings paid by domestic betting companies, the aim being to establish a balance in the betting market, a large proportion of which is captured by illegal sites that escape the taxman’s radar(see TelQuel n°1089 and 1026). Indeed, under Moroccan law, the Moroccan Games and Sports company (Marocaine des Jeux et des Sports, MDJS) is the only player authorized to organize sports betting in the Kingdom.

Someone will have to pay

« The aim is to contain the massive influx of punters into illegal betting on foreign sites. These sites often belong to companies based in countries that don’t have a tax treaty with Morocco. So there is both a loss of foreign currency and a loss of revenue for the State« , explains an expert member of the CGEM to Telquel.

Completely dematerialized, these foreign gambling companies have no legal existence or representation in Morocco. It is therefore impossible to determine their sales figures, let alone compel them to issue tax notices.

« There is very unfair competition between domestic companies and foreign online betting platforms. In Morocco, bettors’ winnings are taxed. The same applies to bets collected by Moroccan gambling companies« , stresses the expert.

He adds that « what compounds this injustice is that foreign betting sites have no offices or representation in Morocco, and incur no expenses apart from the costs of maintaining the gaming platform. Unlike Moroccan companies who, in addition to their taxation, have premises, sales outlets, agents, etc., which generate a significant expense.« 

Technically, « under this amendment, banks will have to deduct 30% of winnings from foreign betting platforms at source. The idea is that as long as it is impossible to tax these foreign companies, part of the tax will be deferred onto players’ winnings. A mathematical calculation is made to determine the percentage. The aim is also to steer Moroccan punters towards legal national players: MDJS, national lottery, Sorec, etc.« , explains the expert.

Circumvention routes

Hamza is one of those occasional gamblers who, during European Champions League matches, spice up the show by playing combinations of the results of the matches on the bill. The amendment in question doesn’t worry him too much: « I don’t think it will deter me from continuing to play.

He explains: « In any case, my bank account is not linked to any online gaming platform. To play, I usually go through an intermediary to whom I transfer the money. When I win, the money is instantly transferred to my account. It will therefore be difficult for my bank to differentiate my winnings from a simple transfer from one account to another« .

The use of intermediaries is common, but there are a multitude of other ways to pocket winnings made on online betting sites, stresses the punter.« There are also other possibilities, as gambling applications offer many options: for example, you can use virtual currencies, a PayPal account, or any other payment channel or means. It will be difficult to trace the origin of transactions, » says Hamza.

An irresistible offer

But what makes online gambling platforms so attractive to the Moroccan public is, first and foremost, the amounts of the winnings and the choice of possible combinations.

« The best thing about online betting sites is that they offer high odds. By combining two or three bets, you can easily increase your winnings tenfold. What’s more, you can bet on any sporting or non-sporting event: you can bet on the score of a field hockey match, on the victory of a candidate in an election, and even on the weather! Traditional Moroccan operators don’t offer this kind of possibility, » points out Hamza.

The companies managing online gaming platforms have an additional advantage which, according to the CGEM expert, gives them a significant competitive edge.« Because these foreign online betting companies have very low costs and pay no taxes, it’s possible for them to redistribute more to players. If we assume, for example, that half of all bets are redistributed in the form of winnings, these gambling companies can increase the percentage to be distributed in the form of winnings, reducing their margin to 30% instead of 50%, in order to maintain their position in the market« , analyzes the expert.

In short, even if the task seems difficult, Morocco intends to put its house in order in the gambling market, and in sports betting in particular. This was demonstrated on December 6, when Fouzi Lekjaa, Minister of the Economy and Finance (who is also President of the Royal Moroccan Football Federation (Fédération royale marocaine de football, FRMF), appeared before the Finance Committee of the House of Representatives to voice his displeasure at 1XBET, a sports betting company operating illegally on Moroccan territory.

Written by Amine Belghazi. Edited in English by S.E.