Offshore betting tax crackdown signals new era for Morocco's gambling legislation
Earlier in the month, Morocco made a definitive move to regulate its online gaming industry by imposing a 30% withholding tax on winnings derived from foreign betting sites. The decision represents a shift in approach to how the country regulates offshore betting, as it seeks to provide transparency and oversight to what is otherwise a largely unregulated market.
has initiated a crackdown on foreign betting platforms that are operating within the country. One of these platforms is the Russian-based platform, 1xBet. Authorities claim that 1xBet was caught using unregulated payment platforms, which allowed suspicious transactions to bypass Moroccan tax.
Deputy Budget Minister Fouzi Lekjaa recently condemned the company and its inappropriate ways, noting that the Moroccan gambling sector is well-regulated. He noted that the sector contributes approximately $250 million in annual tax revenue and that non-compliant platforms like 1xBet are draining the industry of millions.
Closing offshore loopholes
The decision to impose this tax follows an internal risk analysis that revealed significant weaknesses in Morocco’s earlier regulatory regime. Some betting sites, as initially mentioned, had been able to bypass regulation through the use of non-regulated payment systems that sidestepped the country’s foreign exchange regulations. These websites would typically route money via crypto wallets, a practice that local authorities had expressly forbidden.
Before the implementation of the new regulations in July, Moroccan players were able to bet on foreign websites without paying tax, potentially allowing hundreds of millions of dirhams to leave the country annually. Not only did this loophole deprive the Moroccan government of potential tax revenue, but it also raised concerns about transparency and the legality of the matter. Moroccan players faced difficulties when attempting to retrieve their winnings from offshore sites, underscoring the need for stricter regulation and monitoring.
New laws and further contributions
Included in , the Moroccan government has introduced an additional levy—a 2% “solidarity contribution”, on winnings from online foreign gaming. The contribution is in addition to the recently imposed 30% tax that is used to finance various public welfare initiatives. They include rural development, educational programmes, and assistance to needy households, reflecting the government’s broader social agenda.
The twofold measure of taxing and contributing to the public good shows Morocco’s commitment to integrating online gambling into its economic framework. With loopholes covered and monitoring heightened, the authorities are seeking to ensure that the business is conducted openly and that it pays its fair share toward national development.
Morocco’s new tax regime in action
As the offshore betting tax is now enforced, Morocco is becoming a more transparent and regulated gambling market. The enforcement mechanisms should crack down on illicit activities and ensure compliance with the new regulations among players and operators. As Morocco continues to consolidate its strategy, the goal stands to strike a balance between economic development and responsible regulation, ultimately benefiting both the government and Moroccan players.
