With Africa’s burgeoning iGaming market now experiencing several degrees of reforms, one of which is Senegal’s latest fiscal policy, the likelihood of its sustainability has yet again come under the spotlight.
On 1 November, LONASE officially began collecting 20% taxes on all gambling winnings. Law No 17/2025, which was passed by the Parliament as part of Prime Minister Ousmane Sonko’s economic reforms, has certainly generated high public reaction and significant backlash.
Last week, bettors in Senegal even staged a nationwide 72-hour strike, protesting the new law which most of the major players referred to as “point-blank exploitation”.
Eyewitnesses told iGaming Business that the situation deteriorated so much that bettors boycotted every gambling activity from 3 November all through the sixth day of the month.
While tensions have now calmed to some degree, betting whales have still maintained the move has the imprints of manipulative framework all over it.
“I can tell you that the majority of the bettors will no longer visit retail operators, because no one wants 20% of a win ripped off in the name of scam-tax,” a whale bettor told iGB.
“It is unfair and maybe the black market operators will welcome a lot of new customers in the coming days.”
Legal expert clarifies the situation in Senegal
However, during an interview with iGB, Joël Elifaz Dansou, a seasoned tax specialist in Senegal, weighed in on the topic, providing some clearer context to the tax law enactment.
“With the enactment of Law No 17/2025 amending Law No 31/2012 of 31 December 2012, on the Senegalese General Tax Code, new taxes came into effect including a tax on the income of gambling operators and a levy on gambling winnings”, Dansou told iGB.
“While the former applies to gambling operators, notably LONASE, the latter levy applies to winnings made by individuals who engage in gambling. The latter constitutes a withholding tax levied on the winnings by the operator before payment to the bettor.
“For the state, this is an excise tax which, beyond its budgetary function and the financing of the PRES aims to discourage excessive gambling which is considered risky behaviour as stated in the preamble to the law. It should be noted that bettors were not taxed on income from gambling.”
How did LONASE ensure operator compliance on this?
Similar to the automated models currently being employed by most African jurisdictions in ensuring tax collection, the 20% levy is automatically deducted at the time of every bettor’s payout, irrespective of player status (local and foreign).
To this effect, every licensed operator had to update its ticketing system to allow for automated tax deductions as scheduled by LONASE and the tax authority. Prompt communication with clearer data being available to the public becomes imperative at this time to ensure trust.
In its public report LONASE said the move was meant to serve as a means of contribution to national development by the citizenry.
Will this trigger a black market boom?
With the suggestions that a move to unregulated platforms by a large number of bettors was brewing, Dansou said while that is feasible, users who resort to that run the bigger risk of gambling harm.
Such suggestions implied that using some mobile-money payment gateways could undercut the regulated market, as traceability and oversight will be weakened.
“The use of unlicensed platforms that do not comply with the regulations in force could be a way of circumventing this tax reform,” said Dansou.
“However, this presents a greater risk for players, a risk that could cost them more than using official platforms. I believe that informed consumers will be able to assess this risk and make the necessary choices based on their own interests.
“It should also be noted that the use of electronic money in the WAEMU [West African Economic and Monetary Union] area is increasingly regulated by the BCEAO [Central Bank of West African States]. As a result, all transactions carried out by mobile payment services can be traced, which would enable the authorities to take measures to protect players.
“Will there be trials to evade tax? Yes, but the government should take responsible measures to prevent the emergence and proliferation of the unofficial platforms.”
Are bettors really hit the hardest?
While bettors have cried blood, licensed operators have also now braced themselves for stricter oversight as the message the new laws carry signify it will no longer be business as usual.
As a result, the law also stipulates that operators will also have to contribute 20% of their share of prize pools to the state as part of the broader legislative package aimed at increasing state revenue.
The million-dollar question: Will the market survive?
When quizzed on if the move, considering the despicable feeling towards it by the major players, could lead to a crumbling of the market, Dansou suggested that wouldn’t be the case.
“Look, we must first analyse the sociological context governing the rise in gambling consumption,” he said.
“My observations and discussions have led me to note that in a difficult socioeconomic context with rising living standards and stagnant income growth among the middle and lower classes, coupled with job insecurity, part of the population resort to gambling, either to supplement their income or simply to earn one.
“An entire ecosystem has quickly developed around sports betting in particular, providing a livelihood for some who make it a secondary or even primary activity enabling them to cover their daily expenses. Based on this premise, it should be noted that this tax, although described as very restrictive by those involved, does not in itself constitute a factor that could lead to the collapse of the entire ecosystem that has developed around gambling.
“It would not be enough to discourage those who have made gambling a regular activity that provides them with a minimum income. Beyond all that, this also brings a certain degree of tax fairness. Fairness by virtue of which these revenues, which were previously untaxed, are now taxed.”
Dansou also noted that the ones who may be discouraged by this reform are likely to be occasional users who merely play for fun.
That said, it expected that the figures, which will be published by LONASE and the tax authorities, will enable a better analysis of the real impact of this reform on gambling.
Senegal’s new 20% tax on gambling winnings has ignited fierce debate over the market’s long-term viability.