New policy aligns Togo with West African neighbours, ensuring automatic revenue collection from lottery prizes above CFA 500,000
Togo has implemented a new 5% levy on lottery winnings, joining a growing wave of West African countries using gambling taxation as a source of public revenue. The measure, effective from 1 January 2026, mandates that any lottery prize of CFA 500,000 (approximately €760) or more will be automatically taxed, with the proceeds remitted directly to the Office Togolais des Recettes (OTR).
The National Lottery of Togo (LONATO) has confirmed that the system is fully operational, automatically deducting the 5% levy at the point of payout. For instance, a lottery win of CFA 500,000 now sees CFA 25,000 withheld and sent to the national revenue authority, with the winner receiving the remaining CFA 475,000. The announcement, cited by local media, reflects the government’s effort to formalise revenue collection from the gaming sector and ensure transparency in financial flows.
Togo’s decision is part of a broader regional trend. Across West Africa, governments are increasingly turning to gambling taxes as a reliable revenue stream while aiming to regulate and monitor the gaming market. Senegal, for example, introduced a 20% withholding tax on regulated gaming winnings in 2025, applying the levy to both land-based betting outlets and digital platforms. Côte d’Ivoire has taken a slightly different approach, imposing a 7.5% tax on winnings exceeding CFA 1 million, a framework established in its 2018 fiscal annex. Burkina Faso followed suit in 2025, implementing a 5% levy on gaming earnings, mirroring Togo’s new regulation.
The policy not only raises funds for the state but also aligns Togo with regional standards, improving consistency and predictability in the taxation of gambling operations. Experts suggest that such levies help governments monitor gambling activity, reduce informal or untaxed winnings, and strengthen fiscal control over both traditional and digital lottery platforms.
By introducing the 5% lottery levy, Togo joins a regional movement that balances public revenue objectives with responsible gaming regulation. Officials in Lomé emphasise that the measure is straightforward, automatically collected, and designed to have minimal impact on small-scale players while ensuring larger winnings contribute to national development. This initiative represents a significant step toward harmonising gambling taxation across West Africa and reinforcing the formalisation of gaming markets in the region.
