New fiscal reform triggers bettor strikes, legal debate and concerns over black-market growth as authorities defend the policy’s long-term objectives
Senegal’s gambling sector is facing a critical test following the introduction of a 20% tax on gambling winnings, a move that has ignited intense debate over the future sustainability of the country’s regulated betting market. The tax, which came into force on 1 November under Law No. 17/2025, is part of a broader package of economic reforms introduced by the government of Prime Minister Ousmane Sonko and implemented through the national lottery operator, LONASE.
The reform has provoked a strong reaction from bettors and industry stakeholders alike. In early November, dissatisfaction escalated into a nationwide 72-hour strike, during which bettors reportedly boycotted all gambling activities between 3 and 6 November. Many players described the levy as excessive, arguing that the automatic deduction of 20% from winnings fundamentally alters the value proposition of regulated betting.
High-stakes bettors, in particular, have been vocal in their criticism. Several warned that the tax could drive customers away from licensed operators and toward unregulated platforms that do not apply withholding deductions. According to some bettors, the policy feels punitive and risks undermining trust in the formal market at a time when Africa’s iGaming sector is undergoing rapid transformation.
However, legal experts have sought to clarify the intent and scope of the reform. Joël Elifaz Dansou, a Senegal-based tax specialist, explained that the new framework amends the General Tax Code to introduce two distinct obligations: a tax on gambling operators’ income and a withholding levy on individual gambling winnings. The latter is deducted directly by operators before payouts are made to players.
Dansou noted that, from the state’s perspective, the levy functions as an excise tax designed not only to generate revenue but also to discourage excessive gambling, which lawmakers have characterised as risky behaviour. He added that, prior to the reform, gambling winnings were not subject to income tax, making the new measure a step toward broader fiscal equity.
To ensure compliance, LONASE has required licensed operators to update their ticketing and payment systems so the tax is automatically deducted at the point of payout. The authority has framed the reform as a civic contribution to national development, though critics argue that clearer public communication is needed to restore confidence.
Concerns about a potential rise in black-market gambling remain central to the debate. While Dansou acknowledged that some players may attempt to evade the tax by using unlicensed platforms, he warned that such behaviour exposes users to higher risks, including fraud, lack of player protection and increased gambling harm. He also highlighted that mobile money transactions within the WAEMU region are increasingly traceable, limiting the effectiveness of tax evasion strategies.
Importantly, the reform does not target bettors alone. Licensed operators are also required to contribute 20% of their share of prize pools to the state, signalling tighter oversight and higher compliance costs across the sector.
Despite the backlash, Dansou does not believe the tax will collapse Senegal’s gambling ecosystem. He argues that socioeconomic pressures, including job insecurity and stagnant incomes, have embedded gambling into daily life for many citizens. As such, while casual players may be discouraged, habitual bettors are unlikely to exit the market entirely.
Ultimately, the true impact of the reform will depend on forthcoming data from LONASE and tax authorities, which are expected to provide clearer insight into shifts in betting behaviour, revenue collection and market stability in the months ahead.
