Algeria, officially known as the People’s Democratic Republic of Algeria, is a country in North Africa and is the largest one by total area on the continent and among Arab countries. Many consider Algeria the gateway between Europe and Africa, with the country also being a member of the Arab League (League of Arab States).
When it comes to the legal status of gambling in Algeria, this activity is strictly forbidden by law. This is not surprising, considering that about 99% of Algeria’s population is Muslim. As the country’s legal system is largely based on Sharia law, any form of gambling is prohibited.
Despite the strict ban, a few activities that may be considered forms of gambling have been legalized in Algeria. All of them incur a hefty 40% tax, so they resemble charity more than gambling. Moreover, legal betting activities play a huge role in funding public services and charitable causes.
History of Gambling in Algeria
Although gambling is strictly forbidden in Algeria today, this does not mean the activity has been absent throughout the country’s history. In 1909, when Algeria was still a French colony, horse racing tracks were introduced in the country. Unfortunately, in 1977, placing wagers on races organized abroad was banned, which seriously affected the horse racing betting sector in Algeria.
In 1962, handball gained huge popularity among Algerians thanks to the introduction of the Algerian Handball Championship. This is also one of the sports that residents can bet on via Pari Sportif Algerien (PSA).
One of the key moments in Algeria’s legal framework was the passing of the Algerian Family Code. It established Sharia law as the main guideline for the country’s regulatory system. Based on Quranic teachings that deem gambling sinful, the Algerian Family Code bans gambling in Algeria.
Ministerial Decree No. 98-257 was passed in 1998, requiring internet service providers to restrict access to any web content considered offensive or immoral. Websites that provide gambling-related products also fall into this category.
The Algerian lottery was first introduced by decree in 1937. After several legislative changes, it was reintroduced in 2006. With the new lottery regulations, a 40% tax on winnings was also imposed, and the collected funds are used for welfare causes.
In 2010, to reinforce restrictions on inappropriate online content, the government introduced internet censorship after several political movements by opposition parties. Under these amendments, the country can block any website seen as a threat to public decency and morality. Even though the decree requiring internet providers to block specific websites was repealed in 2012, online censorship has remained in place.
Lotteries and Skill-Based Betting in Algeria
As mentioned before, only a few forms of wagering have been legalized in Algeria, all of them subject to a high tax that funds various charitable causes. The lottery was one of the first activities legalized in the country, even before the Algerian Family Code was enacted. In 2006, the lottery was reintroduced and the extremely high 40% tax rate was applied to winnings from lottery games.
This sector is run by Pari Sportif Algérien (PSA), which offers scratchcards and two variations of traditional lottery games. The first draw-type lottery game is known as Loto Erriadhi. Players must correctly guess six numbers drawn from a total of 49 balls. The other lottery game that Algerians can play is known as Loto Mohtaref, which awards a win to those who match seven numbers out of 35.
Through lottery shops operated by the PSA, Algerians are also allowed to bet on a limited number of sports. Exotic betting markets are unavailable, but bettors can place basic wagers on a few sports. The money collected via legal sports betting is used to support Algerian athletes.
The sports that Algerians can bet on include football, handball, and volleyball. These sports are extremely popular in the country, with Algeria boasting great athletes in all three. Like in many other parts of the world, football is the most popular sport in Algeria. The national team has qualified for the FIFA World Cup four times, most recently in 2014.
One reason why handball is a favorite sport in Algeria is the Algeria Handball Championship. Established in 1962, shortly after independence, it is still held annually.
As for volleyball, it is also a major sport in Algeria, with the Algerian Men’s Volleyball League and Algerian Women’s Volleyball League crowning national champions every season. Both leagues rank among the best in Africa, and their teams perform well in various international competitions.
Horse racing betting is also legal in Algeria, but bettors must be present at the racetrack to place their wagers. There are nine racetracks in the country. The organization that provides horse racing betting is Société des Courses Hippiques et du Pari Mutuel.
Online Gambling in Algeria
As already established, under Sharia law all forms of gambling are forbidden, and Algeria, as a Muslim country, has deemed gambling activities illegal. The restrictions apply to both land-based and online gambling. The only exceptions are the few skill-based betting forms mentioned above.
Although operators cannot apply for licenses to offer gambling in Algeria, some people exploit legal loopholes to gamble online. Offshore websites are a common avenue, with players typically using VPNs to access foreign gaming sites. Although this is still illegal, no Algerians have been prosecuted for gambling on foreign sites through VPNs that bypass the country’s internet censorship.
Gambling Licensing and Taxes
Even though the Algerian government has allowed a few organizations to offer certain skill-based betting activities, no authority is responsible for licensing or overseeing these operators. Because there is no licensing body, other companies cannot obtain a permit to offer skill-based betting games.
The few betting options that have been legalized in Algeria are all used to fund charitable causes. A 40% tax rate is applied to all winnings accumulated through betting. Even those betting on offshore websites should keep the tax requirements in mind. Typically, such winnings are not taxed, but if the government decided to investigate, players could be accused of tax evasion.
Closing Thoughts
To put it simply, gambling is, and will most likely remain, an illegal activity in Algeria because the country’s legislation is based largely on Sharia law. Games of chance are harshly criticized in the Quran, so they cannot be legalized in the country. That said, there are just a few skill-based forms of betting that have been legalized in Algeria.
Although lottery games, horse racing betting, and basic wagers on a few sports have been legalized, winnings collected from these activities are subject to a 40% tax. The money collected through these taxes is typically used for charitable causes or to support Algerian athletes.
While there are no signs of more lenient regulations, there is speculation that the Algerian government may amend its laws to close existing loopholes. This could make it more difficult for those who use VPNs to gamble online on offshore websites. That said, currently, there are no changes to the main laws regulating gambling in the country.