Gambling and online casinos in Iraq

Iraq is one of the states where gambling is completely prohibited by both law and Islamic Sharia.

In a country where religious norms are deeply woven into the system of law, gambling is considered not just a crime, but a sin contrary to Islamic morality.

Any form of gambling - from poker and roulette to online betting - is illegal, and serious penalties are imposed for organizing or participating in them.

Nevertheless, despite strict controls, there is a shadow market in Iraq - both offline and online, fueled by cryptocurrencies and foreign platforms.

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Historical context

Until the 1960s, there were private gaming clubs in Iraq, especially in Baghdad and Basra, aimed at foreigners and military professionals.

However, with the increase in religious influence and the coming to power of the Baathist Party in 1969, all gambling establishments were closed, and gambling was declared anti-social and immoral.

After 2003, with the fall of the Saddam Hussein regime, private investment and digitalization came to the country, but gambling legislation remained unchanged -

gambling remains illegal, and religious institutions strictly condemn any attempts to legalize it.

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Legislation

Main legal acts:

1. Iraqi Penal Code (1969), articles 386-389 - prohibits the organization of gambling, lotteries and casinos.

2. The Moral Order Act (1983) - equates gambling with "acts that undermine social foundations."

3. Iraqi Constitution (2005, Art. 2) - establishes Islam as the basis of legislation, where gambling (maysir) is a sin.

4. Cybercrimes Act (2021, draft) - punishes online gambling and the promotion of such sites.

Main provisions:

• Casinos, slot machines, betting, poker, lotteries are prohibited;
• Online gambling and gambling advertising is a crime;
• Financial institutions are required to block transfers to offshore casinos;
• Those guilty of organizing money games can be sentenced to up to 5 years in prison;
• Participation of citizens in betting on the Internet entails a fine or arrest.

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Real situation

Despite formal bans, there is a wide underground gaming culture in the country, especially in major cities - Baghdad, Erbil and Basra.

Private illegal clubs operate under the guise of cafes or "holiday homes," and offshore gaming platforms are actively developing on the Internet.

Key trends:

• access to gambling sites is carried out through VPN and mobile proxies;
• settlements are carried out in cryptocurrency (Bitcoin, USDT, TRON), less often - in US dollars through intermediaries;
• popular offshore brands - 1xBet, Stake, BetWinner, Melbet, Parimatch, PokerStars;
• Telegram channels offer "private accesses," promotional codes and crypto wallets;
• illegal betting companies operate through WhatsApp groups and accept bets on football and cricket.

According to the Iraq Cyber ​ ​ Research Center (2024), more than 400,000 users from Iraq regularly visit offshore casinos, and the volume of shadow online gambling is estimated at $300-400 million per year.

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Online gambling and cryptocurrencies

Due to the blocking of international payment systems and sanctions, foreign casinos cannot accept bank transfers from Iraq.

Therefore, players have massively switched to cryptocurrencies and P2P transactions.

Popular workarounds:

• replenishment via Binance P2P, OKX, TRC-20 USDT;
• anonymous crypto wallets and Telegram bots;
• use of foreign numbers and VPN (Turkey, UAE, Cyprus).

In 2023, the Central Bank of Iraq banned the use of cryptocurrencies for "unregistered trading operations," but this ban did not actually stop gambling traffic -

turnover continues due to unofficial intermediaries.

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Control and fight against illegal games

Anti-gambling is the responsibility of:

• Ministry of the Interior (MOI) - suppression of underground clubs;
• Moral Safety Committee - public morality oversight;
• Cybercrime Directorate (MOI) - monitoring online activities and blocking sites;
• Bank of Iraq - financial control and AML compliance.

Dozens of people are arrested every year in the country for taking part in "money games," and police regularly report raids against clandestine halls.

Nevertheless, the lack of a clear monitoring system makes the fight against online gambling ineffective.

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Social and religious aspect

Islamic culture in Iraq strongly condemns excitement.

Religious leaders - both Sunni and Shia -

regularly publish fatwas against gambling, equating them with alcohol and usury.

Nevertheless, among young people and IT specialists, the attitude towards online gambling has become more pragmatic:

• games are seen as entertainment or a way to make money, not a religious crime.

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Economic aspect

No legal gambling market means:

• zero tax revenues from the industry;
• growth in shadow cryptocurrency turnover;
• leakage of capital offshore;
• loss of tourism - especially in Kurdistan, where in neighboring Erbil (in the autonomy region) entrepreneurs discussed the possibility of creating "tourist casinos for foreigners."

With controlled legalization, experts say

Iraq could earn up to $500 million in taxes annually, but the political and religious situation makes this impossible.

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Prospects

In the coming years, the legalization of gambling in Iraq is impossible.

The state is guided by the Islamic model of legislation, and parliament and religious leaders do not allow discussion of the topic.

At the same time, the government recognizes the existence of an informal cryptoeconomics, in which online gambling occupies a prominent place.

A possible scenario for the future is limited legalization for foreigners within the framework of free economic zones in the north of the country (for example, in Erbil).

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Iraq is a country of absolute prohibition of gambling, where Sharia and state laws are united in their position.

Casinos, betting and online gambling are illegal, but in the digital age, excitement still penetrates the country -

through VPNs, cryptocurrencies and offshore platforms.

Iraq today is an example of a country where tradition is stronger than the market, but digital reality is slowly blurring even the most rigid religious boundaries.