Concerns over gambling tax spark debate in Morocco

Moroccan lawmakers are engaged in a heated discussion regarding the proposed taxation of gambling activities as part of the 2025 Finance Bill. According to reports from bladi.net, members of Parliament have raised alarms that the introduction of a gambling tax could inadvertently lead to the legalization of gambling among minors and facilitate money laundering.

The debate intensified during the Finance and Economic Development Committee's review of the bill, with Abdellah Bouanou, president of the parliamentary group for the Justice and Development Party (PJD), warning that taxing gambling might encourage underage gambling and exacerbate issues related to financial crime. Bouanou emphasized that while the government has mechanisms to verify the identity and age of participants, there remains significant cause for concern.

In contrast, Rachid Hamouni, head of the Party of Progress and Socialism (PPS) group, argued that imposing a tax on gambling is a matter of public finance rather than religious considerations—a viewpoint not shared by Bouanou.

To address these concerns, Fouzi Lekjaa, Minister Delegate for the Budget, reminded lawmakers that a gambling tax already exists, generating approximately 2.57 billion dirhams in state revenue. He explained that the government's intent behind including this tax in the 2025 Finance Bill is to enhance revenue transparency and ensure proper tax collection at source.

The new legislation aims to impose taxes on online gambling winnings, which had previously been untaxed. Set to take effect on January 1, 2025, it will require all entities responsible for disbursing winnings from games of chance to apply withholding taxes on behalf of the Treasury. This initiative targets an online gambling sector that has often operated without adequate legal oversight.

Article 160 of the bill mandates that credit institutions and other payout entities withhold taxes on winnings, marking a significant shift in Morocco's approach to regulating and taxing gambling activities.