Egypt Gambling Regulation

Egypt is a country with a rich history, much of which has been uncovered through numerous archaeological expeditions. Nevertheless, the pyramids still remain a mystery to mankind, and no one can explain how they were built at a time when manpower was the primary resource available.

During the Anglo-Egyptian War, between 1882 and 1956, Egypt was occupied by British forces. The 1954 Anglo-Egyptian agreement put an end to this period. Between 1882 and 1914, the Khedivate of Egypt remained an autonomous territory of the Ottoman Empire, yet the British established a de facto protectorate over the country. When the Ottoman Empire entered World War I in 1914, Britain declared a protectorate over Egypt.

In 1922, Egypt regained its independence and began enforcing its own laws and regulations. Nowadays, it is one of the most developed countries in Africa, and the tourism sector plays a major role in that. As a Muslim country, Egypt clearly does not consider gambling a legal activity. However, Egyptian gambling laws are more complicated, and whether you are an Egyptian resident or a tourist is extremely important when discussing the legality of gambling.

Discoveries show that gambling was popular in Ancient Egypt, and the activity clearly has a long history that cannot be ignored. Moreover, as one of the top tourist destinations in the world, the country strives to ensure a great experience for all its visitors. This is why there are several legal land-based casinos in Egypt that, however, welcome only tourists who can prove they are not Egyptian residents.

Land-Based Gambling Regulations in Egypt

As mentioned earlier, Egypt has a predominantly Muslim population. Nevertheless, land-based casinos are not illegal in Egypt. However, one important clarification is that all forms of gambling remain forbidden for Egyptian residents.

Therefore, only tourists who present their passports and prove they are not residents may legally gamble at brick-and-mortar casinos in the country. The legal age for tourists to enter a casino in Egypt is 18, although several venues have set the minimum gambling age at 21.

Gambling According to the Sharia

Land-Based Casinos

Sports Betting and Lottery

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Gambling According to the Sharia

Because Egypt is a Muslim country, it follows Sharia law, which deems any act of gambling illegal. However, it is important to understand exactly what is considered gambling and which activities Islam does not regard as gambling.

In the Quran, gambling is described as evil and “Satan’s handiwork,” and it is often condemned alongside alcohol. At first glance, this suggests that Muslims are prohibited from practicing any form of gambling. However, because the Quran provides no specific details on gambling, scholars have determined that only certain forms are sinful and therefore illegal.

Thanks to various religious rulings, those who wager on races are not considered sinners under Islam. Although gambling is generally deemed haram, horse racing, camel racing, and archery are not classified as gambling under Sharia law.

Most Islamic scholars define gambling as a game in which one participant gains a profit, while another incurs a loss. Therefore, when two bettors stake money on whether an event will occur and the loser must pay the winner, the activity is considered gambling and is forbidden in Islam.

Sports betting conducted through a sportsbook is viewed differently. In such cases, the prize is guaranteed by an organizer that offers bettors the chance to enter a contest with potential rewards.

Scholars argue that it is illegal for the entire prize pool to come from the contestants because the winner would reclaim their stake and also receive the wagers of the other participants. Such an arrangement would fall under the definition of gambling in Islam. Collecting entry fees from bettors is allowed, as these fees do not affect the prize money.

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Land-Based Casinos

Although tourists are permitted to gamble at brick-and-mortar casinos in Egypt, locals are not. According to Article 352 of the Penal Code of Egypt (p.124), “whoever provides a location for gambling games and prepares it for entry by people shall, together with the tellers and exchangers of the said location, be punished with detention and a fine not exceeding one thousand pounds. All moneys and effects in the locations where the said games are played shall be seized and a ruling shall be pronounced for their confiscation.”

Article 353 of the Penal Code (p.124) further states that these penalties “shall also be inflicted on whoever puts an object for sale in the lottery tickets game, and all moneys and effects found in the lottery games shall also be seized and confiscated by the government.”

Currently, there are a little over 20 land-based casinos in Egypt that welcome tourists who are of legal gambling age and can present a passport proving they are not Egyptian residents. While these casinos are legal, they must obtain gambling licenses, and the government imposes a 50% tax on each casino’s income.

All land-based casinos in the country accept U.S. dollars. Several venues may also allow players to use euros, but none accept Egyptian pounds.

The Ministry of Tourism oversees gambling in Egypt. It supervises the operations of land-based casinos, which must comply with Law No. 1/1973, the statute that regulates hotels and resorts. Under this law, only four- and five-star hotels that primarily serve tourists are eligible to apply for casino licenses. You can find land-based casinos in Alexandria, Cairo, Sharm El-Sheikh, and Taba.

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Sports Betting and Lottery

Sports betting is an entirely different matter, as it is fully legal in Egypt, and football is the most popular sport among bettors. In 2005, an agreement between the Egyptian National Post Organization and the Greek company Intralot enabled sports betting services to operate nationwide. Unlike casino facilities, sportsbooks can legally offer wagering to both locals and tourists.

Because sports betting is regulated, thousands of bookmakers now operate throughout the country, allowing Egyptian bettors to place wagers on a wide variety of popular events.

The lottery is also legal, with the first draw dating back to 1976. After the launch of the Lottery Coalition, several hundred retailers sold tickets to Egyptian residents, though the number of operators has declined in recent years.

Online Gambling Regulation

When it comes to online gambling, matters become vague because the market is not regulated in Egypt. In theory, online gambling is illegal in the country, but because there is no specific regulation, it cannot be said for certain that Egyptians are prohibited from betting on slots or table games online.

Even though you will not find a virtual casino licensed in Egypt, players who reside in the country can register at numerous offshore casinos. Since no law prohibits Egyptians from registering and placing bets at international gaming sites, many offshore casino operators accept players from Egypt and allow them to wager real money on various games.

Because Egyptian residents are not allowed to gamble in any domestic land-based casino, it is no surprise that many choose to bet at offshore gaming websites. Many of the interactive casinos that accept players from Egypt also enable them to choose from various payment solutions for deposits and withdrawals. Since the definition of online gambling is not addressed in Egyptian law, there are no specific restrictions on the payment solutions available to Egyptian players.

In addition to casino games, online sports betting is also popular among Egyptian punters. Of course, this too is carried out at offshore virtual sportsbooks that accept bettors from Egypt. You can even find gaming and betting websites that allow patrons to settle their payments in EGP. That said, not all virtual casinos and sportsbooks support the Egyptian currency, so players often have to use USD, EUR, or GBP.

Licensing and Gambling Taxation

Although land-based casinos are legal in Egypt and more than 20 facilities operate in the country, the government imposes harsh taxes on casino operators. As a result, about 60% to 70% of casino profits go to the Egyptian government.

Casino operators in the country must pay a 50% tax on their gross gaming revenue. In addition, according to Article 7 of the 2005 Egyptian Income Tax Law Number 91, casinos must also pay a 20% income tax. Casino operators in Egypt are also obligated to pay import duties, as well as a 42% corporate tax on their year-end profits.

The gross gaming revenue of Egyptian casinos represents the amount that remains after the casino pays out winnings to players. It is calculated before any operating costs are deducted from the casino’s profit. The 50% tax is evenly distributed to the Ministry of Tourism and the Ministry of Finance.

As mentioned earlier, only four- and five-star hotels in Egypt located in areas with a strong tourist presence can apply for a casino license. The Ministry of Tourism grants Egyptian land-based casinos permission to operate. The conditions under which the casino will operate must be included in the license. Casino operators can obtain licenses valid for five or ten years.