How Arab countries regulate gambling

1) Religious and legal grounds and how they are "translated" into regulatory

Sharia treats excitement as social harm (garar/mysir): the prohibition of profiting from chance and "unearned" income.

State implementation varies: from direct prohibition to "exceptions," where the state is the initiator and beneficiary (lotteries, offices. sweepstakes, state monopolies).

Legal bypass constructions: "entertainment without a monetary element," tourist areas, "foreign client," charitable purpose, licensing of bets on sports with a historical tradition (horse racing, camel and horse races, boat races).

2) Model map by region (generalized)

💡 GCC (Persian Gulf). Prohibition prevails, but tourism and entertainment megaprojects are active; in individual jurisdictions, pilot formats of resorts and "recreational games" without an explicit monetary element are discussed or implemented.
North Africa. In a number of countries - lotteries/sweepstakes under the state monopoly, casinos with access for foreigners, strict control of foreign exchange transactions and advertising.
Levant. Historically, there are point permissions (lotteries, individual casinos), but online more often remains in the "gray zone" with blocking and prosecution of unlicensed operators.

Important: specific lists of allowed/prohibited verticals, authorized bodies and tax rates change; always check the current texts of laws and by-laws during applied work.

3) Verticals: what is most often allowed (if allowed)

Lotteries and instant draws - as a rule, under the state monopoly or quasi-government, with deductions for social/cultural projects.

Horse racing/betting is traditionally the most "legitimate" type of betting; offline points and/or government online channels are sometimes allowed.

Casino for foreigners - "tourist showcase" mode: access by passport, settlements in foreign currency, strict compliance, geographical localization in resort areas.

Skill games/competitions (often without a cash prize or with quasi-prizes) - arcades, eSports events without direct betting, promotional activity with limited rewards.

4) Online gambling and the "gray zone"

A full local license is rare; more often - an outright ban or no licensing regime (de facto ban).

Enforcement: blocking domains and payment channels, responsibility for local intermediaries and organizers, sometimes for players.

Offshore sites: access is achieved through VPN/crypto payments, but this carries legal and financial risks (freezing of funds, inaccessibility of legal protection, conflict with currency and criminal law).

Regtech trends: KYC/AML, geolocation filters, anomaly monitoring, transparent payout tracks, black lists of operators/affiliates.

5) Licensing and supervision: model approaches

State monopoly/concession: the state itself organizes the product or issues limited licenses for hard KPIs, audit & reporting.

Regulator as part of tourism/finance: emphasis on currency control, origin of funds, revenue reporting, consumer protection.

Tourist clusters/IR: license for a resort complex (hotel, MICE, entertainment, retail, sometimes - casino) with multi-level compliance, access limits, self-exclusion and responsible play systems.

Intermediate formats: "entertainment games without cash winnings" (prize caps, non-cash prizes), festival permits, limited pilots.

6) Taxes and fiscal deductions

The structure usually includes: license fee, annual fee, tax on gross gambling income (GGR) or turnover, VAT/income taxes, earmarks (sports, culture, charity).

Currency regime: when admitting foreigners - settlements in foreign currency, separate rules for exchange and withdrawal, reporting by source of funds.

Players: taxation of winnings - according to local norms (often - special modes for lotteries/sweepstakes).

7) Advertising, sponsorship and media

Most often, direct advertising communications, targeting of minors, bonus aggression and cross-promo in prime time are limited or prohibited.

Sponsorship of sports/clubs: possible in countries with permissible verticals (lotteries/sweepstakes), but with strict rules for placing logos and age disclaimers.

Content Marketing/Affiliates: Require extra care - unlicensed promotion is often held liable.

8) Player protection, KYC/AML and responsible play

KYC/AML: verification of identity, beneficiary, source of funds; deposit and rate limits; reporting on suspicious transactions.

Responsible Gambling: self-exclusion, timeouts, time/loss limits, age verification, training personnel to identify risks.

Data and privacy: log storage, incident reporting, mandatory risk notifications for vulnerable groups.

9) Technology and offshore risks (including crypto)

Crypto payments and stablecoins facilitate cross-borders, but conflict with currency and gambling regulation.

Provably fair/RNG audit is a standard for international providers, rarely recognized as local law without separate certification.

Geo-blocking & PSP-blocking - basic regulator tools; it is difficult for an operator without a local license to keep payment rails.

RegTech: behavioral analytics, risk scoring, sanctions lists, Travel Rule for VASP.

10) Practical checklists

For operator/investor

1. Jurisdictional map: the status of prohibition/exceptions, the presence of an IR regime, who is the regulator, whether there are state monopolies.

2. Licensing: type of license (concession/monopoly/IR), term, quotas, local partner, capital requirements and beneficiaries.

3. Fiscal block: GGR-tax/turnover tax, VAT/corporate tax, currency regime, local banking requirements.

4. Compliance: KYC/AML, responsible tools, IT circuits (logging, reports, data storage in the country).

5. Marketing: advertising/sponsorship/affiliate rules, language and cultural norms, sanctions for violations.

6. Operations: restrictions on products (lotteries, sweepstakes, casinos for foreigners), limits on jackpots/prizes, opening hours, zoning.

7. Risk contingencies: directors/staff liability, criminal/administrative sanctions, rules for resident players.

For editors and content analysts

Indicate the legal status of each vertical separately.

Separate offline and online.

Mark financial and advertising restrictions.

Give disclaimers and calls for responsible behavior.

Update with each law/regulation release.

11) Typical scenarios and red flags

"Casino only for foreigners": check the entry mode (passport/visa status), settlement currency, prohibitions for residents.

"Lottery for charity": you need a state license/monopolist, reporting, transparency of the distribution of funds.

"Online bets through offshore": high risk of blocking and loss of funds; for users - possible legal liability.

"Skill games": the regulator often treats them as excitement in the presence of a cash prize and chance; legal opinions are required.

12) Horizons 2025-2030

Tourist megaprojects and IR approaches will expand pointwise, but will not lift the basic ban in most countries.

Regtech solutions (biometrics, behavioral scoring, self-exclusion registry) will become the standard even where excitement is formally prohibited - to control "exceptions."

The online market will continue to remain in the gray zone: emphasis on blocking payment rails, collaboration with BigTech/PSP and the fight against offshore marketing.

ESG focus: the connection of fiscal deductions with socially useful projects will become a key legitimizing argument where lotteries/sweepstakes are allowed.

13) Disclaimer and good practice

Legal regimes change rapidly, and language in Arab law and order often relies on both religious and secular norms. Before launching a product, publishing a material or marketing campaign, a local legal audit is required to verify laws, regulations and law enforcement practices.

The regulation of gambling in Arab countries is a dynamic balance between sharia norms, public interests and economic priorities. In practice, it is expressed in a spectrum from total prohibition to narrow, tightly controlled exceptions. For business, the key to sustainability is local legal expertise, impeccable compliance and respect for the cultural context. For the reader and the player, the understanding that "allowed" in one place can be "prohibited" across the border, and online access does not negate legal liability.