Egypt is a country with a rich history, some of which has been discovered thanks to numerous archaeological works. Despite that, the pyramids still remain a mystery to mankind and no one can explain how they were built in times when manpower was the main resource that everyone relied on.
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. In the years between 1882 and 1914, the Khedivate of Egypt was still an autonomous territory of the Ottoman Empire but the British established a de facto protectorate over the country. When the Ottoman Empire became a part of the First World War in 1914, Britain constituted a protectorate over Egypt.
In 1922, Egypt managed to gain its independence back and had its own laws and regulations. Nowadays, it is one of the most well-developed countries in Africa and the tourism sector plays a major role in that. Being a Muslim country, it is clear that it does not consider gambling a legal activity. Despite that, the gambling laws and regulations in Egypt are more complicated and whether you are an Egyptian resident or a tourist is extremely important when we talk about the legality of gambling.
There have been some discoveries about gambling being popular in Ancient Egypt and it clearly has a long history that cannot be ignored. What is more, being one of the top tourist destinations in the world, the country strives to ensure a great experience to all of its visitors. This is why there are several legal land-based casinos in Egypt that will, however, welcome only tourists who can prove they are not Egyptian residents.
Land-Based Gambling Regulations in Egypt
As mentioned earlier, Egypt is a country with a predominantly Muslim population. Despite that, land-based casinos are not illegal in Egypt. There is one important clarification, however, and that is that any form of gambling is still forbidden for residents of Egypt.
This means that only tourists who provide their passports and prove that they do not reside in Egypt will be legally allowed to bet at the brick-and-mortar casinos based in the African country. The legal age for tourists to be eligible to enter a casino in Egypt is 18 years. This being said, several land-based casinos have settled on the minimum gambling age being 21.
Gambling According to the Sharia
Land-Based Casinos
Sports Betting and Lottery
Gambling According to the Sharia
Since Egypt is a Muslim country, it follows the Sharia law that determines any act of gambling as illegal. It is important, however, to know what exactly is considered gambling and which activities are not regarded as gambling by Islam.
In the Quran, the act of gambling is described as evil and “Satan’s handwork” and it is often condemned together with the use of alcohol. Reading this, you might think that Muslims are not allowed to practise any form of gambling. However, as there have never been any specifics on gambling according to the Quran, scholars regarded only some forms of gambling as a sin and deemed them illegal.
Thanks to some religious rulings, those who place money on races are not considered sinners according to Islam. While every type of gambling is regarded as haram, horse racing, camel racing and archery do not fall under the category of gambling according to the Sharia law.
Most Islamic scholars share the same idea about gambling, describing it as a game where one of the participants ends up gaining a profit, while the other one suffers a loss. This is why it is important to make a difference between the gambling that occurs when two bettors place money on the event of something happening or not happening. Whenever there is an agreement that the loser of the bet owes money to the winner, this is considered gambling and it is forbidden by the religion of Islam.
There is, however, a different type of understanding when it comes to sports betting that is carried out thanks to a sportsbook. In such cases, the winning prize is guaranteed by an organizer that offers punters the chance to participate in a contest that can grant some benefits.
According to scholars, however, it is illegal for the prize to be collected by all contestants as the winner will earn back his/her bet and will also gain the wagers made by the other participants. This is due to the fact that such activity would fall under the definition of gambling in Islam. It is legal to collect money from bettors as fees since these funds do not affect the money prize.
Land-Based Casinos
Even though tourists are allowed to gamble at the brick-and-mortar casinos located in Egypt. This is definitely not the case for locals. 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 oldie 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) also states that the aforementioned 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 little over 20 land-based casinos in Egypt that welcome tourists who are of legal age for gambling and can provide a passport proving they are not Egyptian residents. While brick-and-mortar casinos have been legalized in the country, they have to pay for gambling licenses and the government has imposed a 50% tax on the income of every casino.
All of the land-based casinos in the country accept American dollars. There are also several casinos that may allow players to use euros but none of the casinos will accept Egyptian pounds.
It is the Ministry of Tourism that has taken upon the task of regulating gambling in Egypt. This is the authority that supervises the operations of land-based casinos in the country, which have to abide by the Law No 1/1973, which regulates hotels and resorts in Egypt. According to this law, only 4 and 5-star hotels that are mainly welcoming tourists are eligible to apply for casino licenses. The cities where you can find land-based casinos include Alexandria, Cairo, Sharm El-Sheikh, and Taba.
Sports Betting and Lottery
When it comes to sports betting, things are different as it is fully legal in Egypt and football is the most popular sport that punters enjoy to bet on. In 2005, there was an agreement between the Egyptian National Post Organization and the Greek company Intralot that led to the provision of sports betting services across the entire country of Egypt. Unlike casino facilities, sportsbooks can legally offer sports betting to both locals and tourists.
Since sports betting has become properly regulated in Egypt, thousands of bookmakers have appeared all over the country. They allow Egyptian punters to place bets on numerous popular sporting events and legally enjoy this form of gambling.
The lottery is also legal, with the first introduction dating back in 1976. After the launch of the Lottery Coalition, several hundred retailers offered lottery tickets to Egyptian residents. The number of lottery operators, however, has dropped in the recent few years.
Online Gambling Regulation
When it comes to online gambling, things get very vague as this is a market that is not regulated in Egypt. While, in theory, online gambling is illegal in the country, as there is a lack of any regulations, it cannot be said for certain that it is not legal for Egyptians to bet on slots or table games online.
Even though you will not come across a virtual casino licensed in Egypt, players who reside in the African country can actually register at quite many offshore casinos. Since there is no law that prohibits Egyptians from registering and placing bets at international gaming sites, there are many offshore casino operators that accept players from Egypt and allow them to bet real money on different games.
Considering the fact that Egyptian residents are not allowed to gamble in any of the land-based casinos in their country, it is no surprise that many decide to bet at offshore gaming websites. Many of the interactive casinos that accept players from Egypt will also enable them to choose from different payment solutions for their deposits and withdrawals. Since the definition of online gambling is simply not regarded in Egyptian laws, there are no specific restrictions on payment solutions that can be used by Egyptian players.
In addition to casino games, online sports betting is also popular among Egyptian punters. Of course, this is also carried out at offshore virtual sportsbooks that accept bettors who reside in Egypt. You can even find gaming and betting websites that will allow their patrons to settle their payments in EGP. This being said, not all virtual casinos and sportsbooks support the Egyptian currency so players will often have to opt for options like USD, EUR, or GBP.
Licensing and Gambling Taxation
Although land-based casinos are legal in Egypt and there are over 20 casino facilities operating in the country, the government has imposed quite the harsh taxation for casino operators. Turns out that despite the harsh criticism on gambling, about 60% to 70% of the casinos’ profits go to the government of Egypt.
The casino operators in the country are obligated to pay a 50% tax on their gross gaming revenue. In addition to that, According to Article 7 of the 2005 Egyptian Income Tax Law Number 91, casinos should 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 is left as a result of the total bets that were placed and after the casino has paid out winnings to players. The gross gaming revenue 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 4 and 5-star hotels in Egypt that are located in territories with a strong tourists presence can apply for a casino license. It is the Ministry of Tourism that grants Egyptian land-based casinos the permission to operate. The conditions under which the casino will operate must be included in the license. Casino operators can obtain a license that can last for 5 or 10 years.