Illegal Russian Betting Site 1xBet Costs Morocco Millions in Lost Revenue

The online sports betting site 1xBet has been operating illegally in Morocco for a few years now. It operates in violation of the regulations in force, in particular the Macolin Convention to which Morocco has been a party since 2021, which defines illegal sports betting as "any sports betting whose type or operator is not authorized, under the applicable law in the jurisdiction where the consumer is located."

According to an investigation carried out by the MDJS, 1xBet accepts three means of payment in foreign currency available, namely: Moroccan bank cards, electronic wallets and the intervention of local intermediaries. In addition, 1xBet is conducting an aggressive communication campaign to build its reputation, managing to become the partner of large clubs such as Raja de Casablanca and the Salé Sports Association (basketball section), reports Le360.

But 1xBet owes its success to the very high "player return rate" (TRJ) it applies, which varies between 85 and 95% compared to 66% at the MDJS which ultimately only wins 35% of betting revenues in Morocco, according to a study it conducted. In 2023, MDJS revenues reached 4.45 billion dirhams out of a total of 12.63 billion dirhams. A huge shortfall for the company, which also has to pay 600 million dirhams per year to the National Sports Development Fund (FNDS).

For years, the MDJS has been denouncing illegal betting sites that do not pay taxes or duties, creating huge losses for the Moroccan state. To stop the bleeding, the company filed a complaint against 1xBet with the public prosecutor’s office on March 31, 2023. Pending the outcome of this complaint, the MJDS is mobilizing the stakeholders concerned (banks, private media, Foreign Exchange Office, Ministries of Sports, Finance, Communication, Royal Moroccan Football Federation, etc.) in order to put an end to the illegal activity of 1xBet.