Morocco Targets Millions in Gambling Revenue and Tighter Tax Rules for 2027

Morocco is preparing for a fiscal realignment of its gambling market. In the draft Finance Bill for 2027, the North African nation presents a clear picture of its expectations for the sector. The government expects total revenues of 195 million Moroccan Dirhams (MAD), which is approximately 19.5 million US dollars. These projections are based on three central pillars: deductions from mutual betting, funds from lottery-related proceeds, and profit distributions from horse racing.

What is interesting is not just the sum itself, but also the accompanying push for stricter monitoring. Morocco wants to ensure that gambling winnings are taxed without gaps in the future. To this end, the draft bill provides for an expansion of powers for the tax authorities. It is not about introducing new taxes, but about enforcing existing declaration obligations. Anyone who does not report their winnings properly or on time must expect automatic tax assessment procedures starting January 1, 2027.

Numbers and facts

The distribution of the projected 195 million MAD is detailed in the budget draft. The largest share is expected to come from mutual betting deductions, for which the government has budgeted 90 million MAD. A further 80 million MAD is expected in a special Treasury account reserved for lottery proceeds. The third pillar is the Royal Society for the Encouragement of the Horse, known as SOREC. Profit distributions of 25 million MAD are expected from this organization.

However, these amounts only reflect part of the market. The draft bill also mentions deductions from winnings in dog and horse racing, but refrains from specific estimates for 2027. This could indicate cautious planning or that certain market segments are still difficult to calculate. While the revenue is important for the national budget, the Ministry of Youth, Culture and Communication is simultaneously pursuing even more ambitious goals for the distant future.

Background

The current projections are part of a larger strategy. Morocco has set a goal to massively expand its gaming sector by 2030. Currently, turnover in this area is estimated at around 500 million US dollars, with a doubling being the declared target.

"The goal is not only to generate revenue, but also to empower our youth to develop their own start-ups and small businesses in this sector." - Mohamed Bensaid, Minister of Youth, Culture and Communication

To achieve this, the state is investing 26 million US dollars in the Rabat Gaming City project, among other things. Workplaces and production studios for digital games are to be created here. The newly announced tax tightenings in the gambling sector fit into this image of a more strictly regulated and professionalized market. The amendment of Article 228 of the General Tax Code is intended to ensure that the tax administration can intervene immediately if declarations are incomplete. According to reports from Hespress, this procedure will apply to all procedures initiated after the turn of the year 2027.

Why it matters for German players

For German players, the developments in Morocco have no direct impact on their daily lives, but they serve as an interesting comparative example of state regulation. In Germany, the market has been extremely strictly regulated since the State Treaty on Gambling 2021 (GlüStV 2021). While Morocco focuses on stronger tax recording of winnings, the Joint Gambling Authority of the States (GGL) focuses on player protection through technical barriers.

German users must adhere to the monthly deposit limit of 1,000 euros, which is monitored via the LUGAS system. In addition, a stake limit of 1 euro per game round applies to slots. Anyone playing in Morocco or achieving winnings there would have to declare them meticulously under the new rules from 2027 to avoid sanctions. In Germany, on the other hand, gambling winnings from legal sources for private individuals are generally exempt from income tax, as they do not fall under the seven types of income. Taxation here already takes place at the operator level.

What it means for GGL-licensed casinos

Licensed operators on the GGL whitelist can learn from the Moroccan situation how important transparent reporting channels are. The GGL already demands the highest transparency from German providers regarding transactions and player behavior. The Moroccan decision to move tax declarations for winnings to an automatic audit procedure shows a global trend: governments worldwide are using digitalization to seamlessly control financial flows in gambling. For GGL casinos, this means that regulatory requirements for reporting are more likely to increase than decrease. A stable legal environment, as offered by the German license, is a competitive advantage over the often uncertain conditions in unregulated markets.