Lottomatica/Cirsa Tie-Up Highlights North Africa’s Online Betting Licensing Gap
Lottomatica/Cirsa Tie-Up Highlights North Africa’s Online Betting Licensing Gap
Overview: A Deal That Exposes a Regulatory Divide
In early September, Lottomatica—one of Europe’s largest listed gambling groups—announced its agreement to acquire Cirsa, a major Spanish gaming operator. The deal brings four Moroccan casinos under Lottomatica’s umbrella, but it also shines a spotlight on a striking asymmetry in North Africa’s gambling landscape. While land-based casinos in Morocco attract international investment and operate under recognised frameworks, private online betting has no legal licensing route anywhere in the region.
Morocco accounts for about 2% of Cirsa’s revenue and roughly 4% of its earnings. Neither Lottomatica nor Cirsa has publicly stated plans to seek an online betting licence in North Africa—and for good reason: such licences do not exist. This article dives deep into the licensing gap across Morocco, Tunisia, and Egypt, explaining the legal, economic, and enforcement dynamics that keep online betting outside the regulated market.
The Morocco Case: State Monopoly Meets Offshore Competition
Land-Based Casinos: A Welcome Exception
Morocco’s land-based gambling sector has long been open to foreign investment. Cirsa itself expanded its presence in Marrakech in November 2024, demonstrating that physical casinos can operate within a clear legal framework. The Lottomatica/Cirsa tie-up further confirms that international capital is comfortable with Morocco’s land-based regulations.
Online Betting: Exclusively for the State
The contrast with online betting could not be starker. Cirsa’s own IPO prospectus states bluntly:
“Online gaming only exists for betting, which is operated by a state agency. Online casino games are not allowed.”
That state agency is Marocaine des Jeux et des Sports (MDJS), a company 90% owned by the Treasury and chaired by the sports minister. MDJS holds exclusive rights to sports betting (including online and virtual events) in Morocco. According to reports, this exclusivity runs until 2036 under an unpublished 2016 convention with the State. Rather than being granted a licence, MDJS operates through a tendered management contract.
The Legal Framework: Criminalisation and Court Action
Unauthorised gaming houses and lotteries are criminal offences under Articles 282 to 285 of the Moroccan Penal Code. MDJS has actively sought to block offshore betting sites, most recently through the courts.
The January 2025 Blocking Order
On 12 January 2025, the Casablanca commercial court (sitting in summary proceedings) ordered three major telecom providers—Maroc Telecom, Orange Maroc, and Inwi—to block 19 named betting sites and local payment intermediaries. Non-compliance carried a penalty of MAD 10,000 per day (approximately €920). The judge’s reasoning, reported by Medias24, was that:
“Internet access providers are technically the only parties able to end the manifestly unlawful disturbance resulting from access to unauthorised betting sites.”
The Order Overturned
The order was short-lived. On 26 January 2025, the commercial court of appeal granted a stay, and by 12 February 2025, it had annulled the order entirely, rejected MDJS’s claim, and ended the daily penalty. MDJS could still appeal, but the episode reveals the difficulty of enforcing a state monopoly in a digital world.
The Scale of Offshore Betting: MDJS’s Own Figures
MDJS director general Younes El Mechrafi told a parliamentary sports forum in December 2024 that illegal sports betting stakes in Morocco reached approximately MAD 3.5 billion (around €320 million) in 2024. He estimated the cost to the state at MAD 700 million (€64 million), split between the national sports development fund and the Treasury. These figures are the only publicly available estimates of the unlicensed market in North Africa.
Tunisia: A Legislative Stalemate Between Prohibition and Modernisation
The Legal Foundation: Decree-Law 74-20 (1974)
Tunisia’s gambling law is built on Decree-Law 74-20 of October 1974. Under this framework:
- Sports betting is a state monopoly operated by Promosport.
- Pari-mutuel horse-race betting is managed by the Agence Tunisienne de Solidarité.
No licensing pathway exists for private online gambling operators.
Two Competing Bills: Prohibition vs. Reform
Parliament is currently considering two very different approaches. Neither has yet produced a licensing framework.
1. The Private Members’ Bill (2026/009) – Total Prohibition
Introduced on 20 January 2025 by 23 deputies and referred to the General Legislation Committee on 29 January, this bill would amend the 1974 decree-law to:
- Prohibit all online gambling.
- Require internet and payment providers to block access to gambling sites.
- Impose fines of 10,000 to 500,000 Tunisian dinars (approx. €3,000–€150,000).
- Impose prison terms of one to five years.
Penalties increase for recidivism, involvement of minors, or suspicion of money laundering. MP Yasser Gourari, a promoter of the bill, described online gambling as a “social scourge,” claiming that “after repeated losses and financial difficulties, some people have been driven to despair, sometimes to the point of contemplating suicide.”
Status: The committee considered the bill once, on 3 February 2025, and has taken no further action. It has stalled.
2. The Government Bill – Modernisation (Possibly)
In November 2024, Sports Minister Sadok Mourali announced that a gambling and sports betting bill had been circulated for consultation. Twenty-six public institutions received it, including the central bank, the Competition Council, and the financial intelligence authority.
A year later, Mourali said the draft had been completely revised to align with international standards on sports betting manipulation and money laundering. He told a parliamentary committee in November 2025 that a new law would digitise sports betting.
The key unknown: Will the government bill allow private operators to be licensed, or will it simply modernise Promosport’s monopoly? The text has not been published, leaving the answer unclear.
Current Reality: No Licensing, No Operator Clarity
Tunisia remains in a legislative limbo. Offshore betting sites continue to attract demand, but there is no legal route for operators to enter the market, no tax revenue from online betting, and no consumer protection framework.
Egypt: Punitive Enforcement as Legislation Stalls
Land-Based Rules: A Colonial Legacy
Egypt’s gambling laws were written around physical venues. Law 8 of 2022 states that “gambling games may not be practised in establishments except by non-Egyptians.” There is no licensing framework for online betting.
Enforcement Measures: Freezing, Blocking, and Criminalisation
Without a licensing route, Egypt has turned to increasingly aggressive enforcement:
- October 2024: The then prosecutor-general ordered the freezing of e-wallets and suspension of mobile lines used by betting agents.
- February 2025: Officials announced that regulators were working with the telecoms authority and the media council to block about 80% of betting applications by the end of that month.
- Proposed cybercrime amendments: Ahmed Badawi, chair of the House communications committee, said in May 2025 that the government would amend the anti-cybercrime law to name online betting explicitly. Life imprisonment was discussed for the gravest offences. No bill number or text has been published.
Legislative Efforts That Went Nowhere
Two bills were introduced in 2025:
-
Private member’s bill by MP Martha Mahrous (January 2025): Proposed prison terms of 2 to 5 years and multi-million-Egyptian-pound fines for promoters, agents, and payment facilitators. No further action.
-
Government cybercrime amendments: Referenced but never tabled with a bill number.
Parliament rose on 22 July 2025 having passed 162 laws—none concerning betting. Egyptian outlet Al-Watan reported that electronic betting remained among the committee’s files awaiting discussion on 17 August 2025, listed separately from the cybercrime amendments. The House reconvenes on 1 October 2025.
Bottom line: Egypt is pursuing an increasingly punitive enforcement model. There is no licensing route for private online betting.
North Africa’s Licensing Gap: Common Problem, Different Paths
| Market | State Monopoly | Licensing for Private Online Betting | Recent Enforcement Action | Legislative Status |
|---|---|---|---|---|
| Morocco | MDJS (sports betting exclusivity to 2036) | None | Court order to block 19 sites (overturned on appeal); MDJS may still appeal | No licensing bill |
| Tunisia | Promosport (sports betting) | None | No specific enforcement order | Two stalled bills: one for total prohibition, one for possible modernisation |
| Egypt | No state operator (land-based only for non-Egyptians) | None | Freezing of e-wallets; blocking of ~80% of betting apps | Two stalled bills; cybercrime amendments not published |
Why the Gap Persists
- Prohibition mindset: Governments across North Africa view online gambling as a social harm rather than a taxable economic activity.
- State revenue protection: Morocco’s MDJS and Tunisia’s Promosport benefit from monopoly rents. Opening the market would threaten that income.
- Enforcement challenges: Blocking offshore sites is technically difficult and legally contested (as seen in Morocco). Criminalisation has not eliminated demand.
- Lack of data: MDJS’s estimate of MAD 3.5 billion in illegal stakes is the only hard figure available. Without a licensing route, governments cannot measure, tax, or supervise the market.
The Contrast with Land-Based Gambling
The Lottomatica/Cirsa deal underscores a sharp divide:
- Land-based casinos in Morocco and Egypt operate within recognised frameworks and attract international investment.
- Private online betting is entirely outside the legal market.
This asymmetry raises questions about the sustainability of prohibition. Suppressing offshore betting through blocking and criminalisation may disrupt operators, but it does not remove demand. Governments are left trying to hold back a tide rather than channeling it into a regulated, taxable, and supervised market.
What This Means for Operators and Investors
For international gambling groups like Lottomatica and Cirsa, North Africa’s online betting licensing gap presents both a challenge and a potential opportunity:
- Challenge: No legal route to operate online in the region, even as demand grows.
- Opportunity: If any of these countries eventually opens a licensing framework, early movers could capture a large unlicensed market.
However, the current political and legislative environment in Morocco, Tunisia, and Egypt shows no clear trajectory toward liberalisation. The Lottomatica/Cirsa deal highlights the gap, but it does not bridge it.
Conclusion: A Region at a Crossroads
North Africa’s online betting licensing gap is not a minor regulatory oversight—it is a deliberate policy choice. Morocco defends a state monopoly through the courts. Tunisia debates prohibition versus modernisation without advancing either. Egypt doubles down on enforcement while bills languish.
Without a licensing route, these markets will remain opaque, untaxed, and unsupervised. Offshore operators will continue to serve demand, and consumers will have no legal protection. The Lottomatica/Cirsa tie-up serves as a reminder that while land-based gambling can attract global capital, the online sector remains a regulatory black hole—one that governments are struggling, and so far failing, to close.
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