Morocco implements 30% withholding tax on foreign online gambling winnings

Morocco is set to implement a new tax on winnings from foreign online gambling platforms as part of its 2025 Finance Bill. On Thursday, December 5, the House of Councillors adopted by majority the first part of the draft finance law for 2025 (PLF n° 60.24) in its amended version.

This legislation also introduces a withholding tax of 30% on earnings from online gambling platforms operated abroad. The tax will be deducted at the source, simplifying the collection process and ensuring compliance. The initiative follows a proposal by the General Confederation of Moroccan Enterprises (CGEM) and the majority groups in the House of Councillors. It aims to regulate the lucrative online gambling industry more effectively while increasing state revenues.

In addition to taxing foreign platform winnings, Moroccan residents who earn prizes from online gambling will face a 2% solidarity contribution, applied to both cash and non-cash earnings.  The government has decided to increase the solidarity tax on these operators from 5% to 7%, with the additional revenue earmarked for the Social Support Fund to finance programs aiding vulnerable populations. 

The Finance Bill for 2025 further introduces a new taxable income category, encompassing all winnings from games of chance, which will now be subject to income tax. These measures aim to close loopholes and align Morocco with international best practices in gambling taxation. Payment intermediaries like banks and credit institutions are required to enforce the withholding tax, ensuring efficient implementation starting January 1, 2025.

As per the established procedure, the draft finance law will be forwarded to the House of Representatives for review and voting during a second reading.