“I’m afraid of ending up like my friend, who died after falling into a spiral of debt and health issues from heavy losses on sports betting apps,” Samir, a 32-year-old software engineer in Cairo, told Al-Ahram Weekly, referring to the devastating draw of fast money promised by the apps that are turning them into a deadly trap, particularly for young people and even children in Egypt.

Sports betting, a popular form of gambling, capitalises on the passion of sports fans. Betting on races or matches allows fans to demonstrate their expertise or loyalty to a specific team. The betting app enables users to place bets on sports events through their smartphones or tablets, providing access to odds, betting options, and account management. In Egypt, numerous sports betting apps are available, with 1xBet being among the most recognised. With just a few taps, users can quickly view odds, place bets, and manage their accounts.

A year ago, Samir began gambling after a friend persuaded him to try one of Egypt’s most popular betting apps. Despite his well-paying job, the enticing stories he heard about winning on the 1xBet app led him to try his luck.

Samir’s journey into gambling on sports betting apps started innocently enough but ended in disaster. “Initially, I started with a small bet, but the substantial winnings I got made me wager more. Once I bet on several Premier League football matches and unexpectedly won LE40,000 in one go. However, despite the allure of winning thousands on the apps, I ultimately lost LE100,000.”

“I’m speaking to you after one of my friends passed away from a stroke. He had divorced his wife and was being pursued by the police because he couldn’t repay the loans he had taken out to bet on match results and recover his financial losses,” Samir continued with evident regret.

The father-to-be concluded that “I decided to stop betting on these apps and vowed never to do it again. With my wife about to give birth to our first child, I want to avoid any further regrets. I hope sharing my story will help to prevent others from making the same mistakes. I urge everyone who can to block these apps on their mobiles for the sake of future generations.”

The consequences of the rise in sports betting apps in Egypt are alarming, with incidents of theft, financial ruin, and even suicide or murder surfacing as grave concerns.

Egypt has a substantial youth demographic, comprising about one-fifth of the population in 2024, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS). There are 18.5 million young people aged 15 to 24 in Egypt, making up 17.5 per cent of the total population. Additionally, the 18 to 29 age group consists of 21.1 million individuals, representing 19.9 per cent of the overall population. Many of these young individuals are drawn to the appeal of quick wealth with little effort, captivating millions and drawing them to betting apps.

With the devaluation of the Egyptian pound and an economic crisis with inflation hitting 25.1 per cent in August 2024, many young people have been turning to these apps, hoping that luck might improve their financial situations. This trend is largely influenced by the fallout from the coronavirus pandemic and escalating global tensions, including the Russian-Ukrainian war and the Israeli war on Gaza.

Mohamed Al-Rashidi, a former assistant minister of interior for information, said in a recent television interview that 4.5 million Egyptians use online betting apps. Mustafa Abu Gamra, an expert on information security and artificial intelligence (AI), pointed out in televised remarks that Egyptians spent $1.2 billion on these platforms in 2023. Throughout this year, Egypt has witnessed a series of tragic incidents linked to online sports betting.

One man from Qena governorate recently committed suicide after losing LE70,000 in an Internet betting game, for example, and another from Minya hanged himself for debt. In August, an online betting user killed his grandmother, while in February, a high school student was murdered by a physics instructor after losing a lot of money on a betting app.

These shocking incidents raise a red flag about the devastating impact on society caused by the widespread popularity of betting apps, especially among the younger generations.

YOUTH IMPACTED

Experts speaking to the Weekly sounded the alarm, warning of the growing dangers associated with these apps.

Gamal Farweez, a psychiatry and neurology consultant, indicated that sports betting apps have seen a significant increase in Egypt over the last two years. Nonetheless, he noted that the situation has not yet escalated to the level of a “widespread phenomenon” as it has in some other countries.

He emphasised that the age group most impacted by betting apps, particularly on football results, is between 12 and 18 years old. He has treated approximately 40 patients this year alone for addiction to betting apps' he said, a significant increase associated with the rise of the apps that his clinic had not encountered until two or three years ago.

“These people have all suffered major losses from betting, leading to depression, suicide attempts, or the theft of money and jewellery from family or neighbours in their pursuit of rapid wealth. They have ended up trapped in a worsening spiral of debt,” Farweez said.

He pointed out that several factors drive individuals toward sports betting, such as the influence of friends or acquaintances who are already involved in betting and encourage others by highlighting the potential rewards of gambling apps.

Ahmed Shawki, an economic expert and member of the Egyptian Association for Political Economy, Legislation, and Statistics, highlighted several key factors driving this trend in Egypt, particularly the immense popularity of football among young people, who are avid fans and closely follow both local and international matches.

Shawki said that the passion for this sport, combined with a flood of advertisements promising quick financial gains, creates fertile ground for the proliferation of sports betting apps.

He stressed that the apps are not only attractive due to their promises of quick gains but also because they capitalise on the troubling spread of unethical ideas. “Young people are being convinced that they can easily make money without working, which is further fueled by the misuse of the digital transformation,” he said.

Shawki did not just highlight the allure of these apps, but he also delved into the financial risks they pose. He raised concerns that some apps might be involved in money laundering schemes, for example.

The economic consequences are concerning, with Shawki saying that in some cases the chase after “quick and easy money” is turning young people into an “idle labour force”. This reduces productivity and increases unemployment rates, negatively affecting the economy, he said.

In August, CAPMAS reported that Egypt’s unemployment rate had reached 6.5 per cent in the second quarter of 2024. The unemployment rate for those aged 15 to 19 rose slightly to 7.4 per cent, up from 7.3 per cent in the first quarter. Similarly, for the 25 to 29 age group, it increased to 26.3 per cent, compared to 24.2 per cent in the first quarter of the year.

Ahmed Tarek, a specialist in information security, identified the “mania” for the experiences the apps offer and the “alluring advertisements” targeting young people’s financial aspirations as major contributors driving the demand for certain gambling apps.

“Unfortunately, many users end up falling prey to fraudulent schemes,” Tarek told the Weekly on the sidelines of his participation in the third edition of the Global AI Summit (GAIN), hosted by the Saudi Data and Artificial Intelligence Authority (SDAIA) from 10 to 12 September in Riyadh.

He pointed to the proliferation of deceptive referral links on social media as another significant factor. These links mislead users into believing they can win money from sports betting games. This misinformation boosts the popularity of these apps and generates substantial profits for the companies behind them.

A referral link is a specific URL given to individuals or businesses (the referrers) to promote products, services, or content. When someone clicks on such a link and performs an action like making a purchase or signing up, the referrer earns credit, often in the form of commissions or bonuses.

Tarek specifically criticised 1xBet for promoting false claims about users making substantial profits.

“I was a victim of 1xBet myself,” Tarek revealed. He detailed how the company had used AI to create a fake video with his voice promoting the app with false claims that he had earned about LE600,000 and shared it with Liverpool soccer star Mohamed Salah.

Tarek was stunned to see his fake video rack up approximately four million views in just three days, attributing this rapid spread to the company’s heavy investment in celebrity endorsements.

He warned that the apps are highly insecure, often not available on official app stores, and are usually downloaded from dubious websites. He cautioned that their primary goal might be to steal users’ data and advised extreme caution regarding misleading ads.

He commended the Ministry of Interior for its efforts to block these platforms, acknowledging that while it is possible to control them, the process is time-consuming, especially since sports betting apps began surfacing in Egypt around 2014.

FIGHTING BACK

Most experts spoken to by the Weekly stressed the need to raise societal awareness to address the dangers of online gambling apps, urging families to protect children and teenagers from such activities.

Yassin Said, a legal expert, noted that while Egyptian law does not explicitly address what he called “online casinos”, the justice system has encountered cases of fraud, theft, and suicide linked to electronic gambling.

He pointed out that Article 23 of the Anti-Cyber and Information Technology Crimes Law 175/2018 stipulates that “anyone who uses the information network or information technology to illegally access numbers, data, or the cards of banks, services, or other electronic payment tools shall be punished by imprisonment for a period of not less than three months and a fine of not less than LE30,000 and not more than LE50,000, or by one of these two penalties.”

Said recommended deleting gambling apps and restricting search engines from providing access to such sites.

For his part, Shawki recommended a two-pronged approach. He urged the relevant authorities to either regulate or completely ban these apps. He also suggested implementing severe penalties for those involved in betting and gambling.

He further emphasised the crucial role of the media in this regard, urging it to adopt a more proactive approach in raising public awareness about the dangers associated with the apps.

One sports journalist speaking on condition of anonymity suggested that the Ministry of Youth and Sports should take a more active role in curbing betting on match results and should launch awareness initiatives through its platforms to protect young people from these harmful activities.

Al-Azhar has issued a stern warning against online betting groups and apps focused on sports outcomes, labelling them as “prohibited gambling”.

The Al-Azhar International Fatwa Centre has condemned the practice of betting on sports results via social media and apps, where participants wager money with only winners receiving funds, as forbidden in religion.

It emphasised that such gambling is religiously forbidden and poses serious risks, including family instability and negative effects on children.

As Egypt faces the growing impact of sports betting apps, the call for immediate action to protect young people and address their broader societal effects has never been more urgent. In October, the Administrative Control Authority (ACA) and the National Security Sector arrested a gang recruiting young people for online betting in Egypt. The group had lured young people to participate in illegal betting on foreign websites.

Investigations revealed they had created illegal financial networks to connect betters in Egypt with overseas operators, using fake-name wallets and cryptocurrencies to evade detection. The ACA also noted that the operation intended to harm the national economy.

* A version of this article appears in print in the 14 November, 2024 edition of Al-Ahram Weekly