Lottomatica Acquires Cirsa: Highlighting North Africa's Online Licensing Gap

The agreement by Lottomatica to absorb Cirsa, announced on 2 September, has brought the complexities of the North African gambling market into sharp focus. As one of Europe’s largest listed gambling groups expands its footprint, it faces a region where the digital frontier remains largely closed to private enterprise. Cirsa, which generates approximately 2% of its revenue from Moroccan operations, maintains a strong land-based presence in Marrakech, yet the path to a legal online casino or betting license remains non-existent for private companies.

In Morocco, the gambling landscape is defined by a stark contrast between physical venues and the internet. While international investment flows into luxury casinos, online sports betting and virtual events are the exclusive domain of the state-owned Marocaine des Jeux et des Sports (MDJS). Controlled largely by the Treasury and chaired by the sports minister, the MDJS operates under a convention that reportedly grants it exclusivity until 2036.

Numbers and facts

The scale of the unauthorized market is staggering. During a parliamentary forum in December, MDJS Director General Younes El Mechrafi reported that illegal sports betting stakes reached approximately 3.5bn MAD in 2024. This activity results in a loss of some 700m MAD to the state, funds that are designated for national sports development and the general Treasury.

Tunisia is witnessing a similar struggle. The nation still relies on a 1974 decree-law, with the state company Promosport acting as the sole legal channel for sports betting. A new bill (2026/009) introduced in late January 2026 aims to tighten prohibitions rather than open the market.

"Online gaming only exists for betting, which is operated by a state agency. Online casino games are not allowed." - Cirsa IPO Prospectus

Background

Egypt represents the most punitive model in the region. Law 8 of 2022 strictly limits physical gambling to non-Egyptians, while the online sector remains unregulated and under heavy fire. In February 2026, Egyptian regulators moved to block about 80% of all betting applications. Ahmed Badawi, head of the House communications committee, even discussed the possibility of life imprisonment for those promoting illegal online gambling during sessions in May.

This approach differs significantly from South Africa, where industry experts like Annalisa Emelia Samuels advocate for B2B certification and regulatory oversight to ensure market integrity. The North African model of enforcement and blocking has yet to prove successful in dismantling the offshore demand, as evidenced by failed court attempts in Casablanca to maintain ISP-level blocks on betting sites.

Why it matters for German players

For German players traveling to North Africa, the lack of local regulation means that accessing gambling sites can be legally and technically risky. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) ensures that players are protected by a white-list system managed by the GGL. When playing at a GGL-licensed casino, users benefit from a 1,000 Euro monthly deposit limit and a 1 Euro per spin cap. These safeguards are completely absent in the unregulated North African markets, where player protection is sacrificed in favor of state monopolies or outright bans.

What it means for GGL-licensed casinos

The situation in North Africa highlights the value of the German regulatory framework. While operators like Lottomatica and Cirsa face uncertainty in Morocco and Egypt, GGL-licensed casinos in Germany operate with legal certainty. The strict requirements for IT security and player tracking (LUGAS) might be demanding, but they prevent the billions in losses to illegal markets seen in North Africa. For the industry, the contrast serves as a reminder that clear licensing routes are the only way to effectively manage gambling demand and ensure long-term market stability.