Games of chance: Gamblers will pitch in
From January 01, 2025, gamblers will have to share their winnings with the Treasury. Indeed, one of the surprise tax measures included in the 2025 Finance Bill, adopted on Wednesday, November 13 by the Finance and Economic Development Committee of the First Chamber of Parliament, concerns the taxation of gambling. This provision is symptomatic of the Government’s desire to tax as many activities as possible in order to generate revenue for the Treasury and finance public policies. From January 01, 2025, it is proposed to introduce a withholding tax at a flat rate of 30% on gambling winnings (Article 73-II-G-9 of the General Tax Code, CGI).
Winnings of less than 5,000 dirhams (USD 500) are exempt from income tax (Article 70 bis-2 of the CGI). The tax deduction must be made by the entities paying or intervening in the payment of said gains to individuals (Article 160 ter). Revenues must be remitted electronically to the Tax General Directorate (DGI) by the end of the month following their collection by the persons concerned (Article 174-VII of the CGI). In the event of inconsistency, the tax authorities reserve the right to make any adjustments they deem necessary, and to inform the persons responsible for withholding tax, in accordance with Article 219 of the CGI. These taxes may only be contested in accordance with the provisions of Article 235 of the CGI. Whether in cash or in kind, games of chance are taken in their broadest sense. This includes sports betting (toto foot), horse betting, lotto, scratch cards, online betting such as Bwin, Betclic, Unibet, Winamax, casinos, and others. Also taxable according to their commercial value are raffle prizes such as cars, cell phones, etc.
Entities operating games of chance and paying or involved in the payment of winnings to individual bettors are required to file an online declaration of said winnings with the DGI by March 01 of each year. Winnings generated by online gambling are also covered by the new tax provision. The withholding tax in this case will have to be carried out by banks and other similar bodies or any other entity involved in the receipt and payment of such winnings. The taxation of games of chance in all categories, starting at 5,000 dirhams (USD 500), represents a major change for the many gamblers, some of whom are regulars. The latter will be “ stripped ” of 30% of their winnings for the benefit of the Treasury.
Hassan EL ARIF
