The infamous sportsbook consistently accumulates prohibitions, lawsuits, and legal proceedings. Government officials in Morocco have banned the entity and are endeavoring to rid their market of any trace of 1xBet and its offshoots.
Recently, La Marocaine des Jeux et des Sports (MDJS) issued a cautionary notice to Moroccan citizens promoting the illicit Russian sports wagering enterprise, 1xBet, through their various social media platforms.
Created in 1962, the MDJS functions as a state-operated lottery and possesses a monopoly over the management and execution of betting on all sporting fixtures throughout Morocco, encompassing virtual events, with the exception of equine and canine racing. The MDJS bears the responsibility of guaranteeing the legitimacy, security, and dependability of gaming endeavors, as well as the openness of their functions, under the oversight of governmental bodies and regulatory agencies.
In August of the present year, Moroccan functionaries engaged in lotteries, gaming, banking, and monetary matters were given a formal communique from the MDJS reminding them that the undertakings of the sports wagering website, 1xBet, are unlawful and unapproved within Morocco. The admonitory dispatch, delivered by an MDJS legal representative, also held a reiteration that endorsing this webpage would be subject to judicial repercussions.
Within its correspondence, MDJS mandates the prompt termination of any collaboration with the Russian entity. The organization recalled that in 2023, it lodged a grievance against 1xBet, indicting it with infringing upon the “regulation of gambling establishments and lotteries.” The indictment targets anyone directly or indirectly participating in unlawful sports wagering.
The recipients of the MDJS's message included the governor of Bank Al-Maghrib (Morocco's central financial institution), the director of the Office des Changes (the department within the Moroccan Ministry of Finance in charge of currency oversight and governance), along with other institutions, both public and private.
It must be highlighted that this is not the primary clarification from the MDJS concerning the bookmaker's prohibited actions. The online sports wagering platform, 1xBet, has been functioning entirely outside the law within Morocco for a number of years. According to the MDJS, 1xBet largely takes wagers in three accessible forms of currency: Moroccan bank cards, digital wallets (cryptocurrency included), and remittances through local intermediaries.
During October of the current year, the Moroccan Sports Press Association (AMPS) joined the endeavor to combat 1xBet's unlawful activities, releasing a declaration concerning the proliferation of illicit sports wagering, particularly among the youth. The association characterized illicit sports wagering as a “cancer” within society that undermines the honesty of national sports, and identified 1xBet as the principal instigator of this detriment.
The authorities are unable to accurately determine when the 1xBet platform emerged and commenced operations in the country. The rationale is straightforward: the enterprise possesses no sanctioned legal foothold within Morocco, as verified by a 1xBet spokesperson in an email response to a domestic publication: “We lack any legal structure or affiliated companies in Morocco.” Furthermore, this also holds true for numerous nations where 1xBet.com or its imitations are available.
The webpage 1XBET-maroc.com mirrors the design of 1XBET.com but lacks the mandatory legal disclaimers. The webpage asserts that “1xBet is a Russian company established in Morocco for multiple years.” The webpage incorporates the promo code “1XBETmaroc2019,” signifying that the operator initiated taking wagers from Moroccans as far back as 2019. Inside Morocco, 1xBet is also reachable via a pair of other replicated sites that resemble the original: Melbet.com and betwinner.com. They present similar game formats (wagers and gambling) and corresponding odds. Within the kingdom, 1xBet has simply replicated its mirror site tactic implemented in other nations. In France, the legal framework counted several dozens in 2017. A study by the Asian Racing Federation, disseminated in 2021, cataloged 12,000 sites linked to 1xBet.
From 2022 onward, 1xBet has been conducting a vigorous communications campaign in Morocco with the aim of attracting novel clientele and their funds. A noteworthy portion of this campaign comprises unparalleled advertising. This was initially noticed amidst the African Cup of Nations, where the Atlas Lions (the moniker for Morocco's national soccer team) advanced to the quarterfinals, surrounded by advertisements and billboards endorsing 1xBet.
Advertising banners of 4×4 meters were erected along roadways and at intersections in significant Moroccan urban centers. Identically to the Russian-speaking market, the unlawful bookmaker enlisted regional notables, such as widely known rappers, to champion its operations within Africa. The main demographic is younger individuals.
The enterprise additionally launched an app known as OneX-Sport Helper, enabling users who download it to place wagers on one of its brands, specifically 1xBet, 1Win, amongst others. Despite its website being currently obstructed in Morocco, wagering can be conducted effortlessly and without complications via a VPN.
To compound the predicament, 1xBet has broadened its footprint within the Moroccan market by engaging a substantial network of local representatives who authorize players to continue wagering in diverse currencies. The issue is exacerbated by the reality that several local banks authorize players to make payments utilizing Moroccan cards in dirhams or foreign currencies with the illegal operator.
Furthermore, 1xBet is gaining control over varied influential figures and complete entities within Morocco, encompassing both wholesale and retail. This expansion encompasses sponsorship of financially challenged sports associations and clubs. In particular, the bookmaker has succeeded in forming partnerships with prominent sports clubs, such as the Raja de Casablanca and Jeunesse Sportif de Soualem football clubs, alongside the AS Salé basketball club.
For $60 million, 1xBet secured a 10-year alliance with the Confederation of African Football (CAF). This union was intended to fabricate a semblance of validity for the illicit bookmaker amongst African bettors. The collaboration with CAF engendered uncertainty among Moroccans, who eventually concluded that 1xBet was legitimate due to its logo's appearance throughout African matches broadcasted by the National Corporation for Radio and Television (SNRT).
Therefore, its unlawful status barely impedes the gaming platform from amassing capital within Morocco; in fact, it furnishes certain competitive edges over legitimate gaming operators. Moroccan authorities estimate that 1xBet owes its achievement to its notably elevated return-to-player (RTP) ratio. This ratio is established by the proportion of funds redistributed to the player by the bookmaker. Loosely speaking, it denotes the fraction of the bookmaker's wagers that are returned to players as payouts. By operating illegitimately, the bookmaker can sustain a high RTP, which enables it to lure in additional players and garner funds via heightened turnover.
Within Morocco, 1xBet's RTP surpasses 85%, compared to the 66% of the lawful MDJS. Owing to this reason, despite its formal monopolistic position, MDJS only accounts for roughly 35% of Morocco's wagering earnings. During 2023, MJDS's revenue reached 4.45 billion dirhams ($450 million) out of a total of 12.63 billion dirhams ($1.28 billion). This signifies a substantial deficiency for a state-owned enterprise operating lawfully and conforming to tax regulations, which must also contribute 600 million dirhams ($61.02 million) yearly to the National Fund for Sports Development (FNDS).
1xBet persistently functions in contravention of local statutes and global directives, specifically the Macolin Convention, which Morocco acceded to in 2021.
The Macolin Convention stands as a legal instrument and the singular international legal standard pertaining to the manipulation of athletic competitions. It mandates that governments cooperate with sports organizations, wagering operators, and competition coordinators to forestall, identify, and penalize the manipulation of sports competitions. It furnishes a mutual legal structure for impactful international cooperation in response to this universal menace.
The Macolin Convention was enacted on September 1, 2019. It has been ratified by France, Greece, Iceland, Italy, Lithuania, Norway, Portugal, the Republic of Moldova, Switzerland, and Ukraine. Thirty-two other European nations, as well as Australia and Morocco, have signed it.
It was the breach of this convention that served as the groundwork for a criminal probe into 1xBet within Morocco. A year prior, in the wake of a statement from the identical MDJS, the Kingdom's Public Prosecutor's Office initiated a case against the bookmaker.
The Moroccan periodical Le Matin published an interview with Philippe Auclair, an investigative reporter specializing in the battle against illegal sports wagering. Here's what Auclair imparted when queried regarding the true perils of 1xBet:
“ The peril fluctuates based on the nation, as we are discussing a company operating globally, or virtually globally. The danger resides on multiple strata. Firstly, this illicit entity provides players with higher stakes, leading them to engage with it. Players often neglect that they are interacting with an unlawful firm that circumvents taxes and extracts funds from Morocco. All of this adversely affects MDJS’s earnings and, correspondingly, the direct financing of Moroccan sports. If 30% of the wagering market is dominated by illegal players, that signifies 30% less than the sports funding allotment in Morocco. A further danger is that this entity frequently defaults on payments to its patrons. The issue of addiction is also prevalent. 1xBet targets the most susceptible demographics, specifically a young, uninformed clientele with a profound obsession for football and who are assured extraordinary outcomes. Upon scrutinizing the individuals 1xBet selects as ambassadors, they are frequently rappers, mixed martial artists, and electronic musicians. Gamers. Furthermore, this entity singles out vulnerable nations, denoting countries where they can operate securely or for a nominal fee. Further, any unregulated business invariably poses a substantial risk of capital laundering, be it criminal funds, tax evasion, or finances employed to subsidize criminal operations. The matter of personal data processing also warrants attention. These individuals adhere to absolutely no regulations. Hence, the enterprise was outlawed in Ukraine, as Ukrainian authorities suspected it of conveying the personal data of Ukrainian citizens.
As recent occasions and novel letters alerting of prospective legal repercussions for individuals affiliated with 1xBet demonstrate, Moroccan authorities are far from resolving the 1xBet dilemma within the kingdom. The onus is on the Prosecutor's Office and the Ministry of Justice. Information pertaining to the investigation's advancement has been relayed to the media extremely sparingly and, thus far, fails to denote any noteworthy triumph by the Moroccan judicial system in confronting the criminal network. This is hardly surprising, given the distinct nature of the network's actions.
It is noteworthy that 1xBet proprietors Roman Semiokhin, Sergey Karshkov, and Dmitry Kazorin initially established their bookmaking enterprise in Bryansk, their hometown. Since the company's operations in Russia were similarly deemed illegal, criminal charges were filed against them. All three are sought after and are in concealment abroad. However, this has not impeded their criminal organization from persisting in operating within their home country.
While Semiokhina, Karshkov, and Kazorin are being pursued by the Russian Investigative Committee for the Bryansk Region, their platform is streaming live football matches from a children's football school in Bryansk and accepting wagers on their outcomes. It should be stated that 1xBet is flouting the law in this aspect; not only is it operating within an illicit territory, but it is also taking wagers on competitions entailing underage athletes, which is similarly unlawful.
It is reasonable to presume that altogether eradicating 1xBet's criminal endeavor within Morocco will be no less onerous than within Russia. Nevertheless, lacking the dynamic participation of law enforcement agencies in the countries where the organizers of the criminal network are concealing, and without their apprehension, combating 1xBet's activity and presence is as challenging as eradicating drug trafficking, arms trafficking, or prostitution.
