Africa's emerging iGaming market is experiencing a series of reform pains, with Senegal recently introducing a new tax policy that has caused a stir domestically. Starting from November 1, the country began to levy a 20% tax on all gambling winnings. This law, which many players call "naked exploitation," not only triggered a nationwide player strike but also raised concerns: Could this market be crushed by excessive tax burdens?
New Tax Causes a Stir
This new policy, implemented under Law No. 17/2025, is part of Prime Minister Usman Sonko's economic reforms. For players, this means that for every $100 won, $20 is automatically deducted—a significant amount. The policy immediately sparked strong backlash.
Last week, players in Senegal organized a 72-hour nationwide strike starting from November 3, boycotting all gambling activities. A veteran player complained to the media: "Most people will no longer patronize regular operators, no one wants their winnings taken away by a 'scam tax' of 20%. It's unfair, and in the coming days, black market operators may welcome many new customers." Although the current tension has eased somewhat, dissatisfaction is still widespread.
“Double Blow” for Players and Operators
So, what's the deal with this 20% tax? Local tax expert Joel Elifaz Dansu explained. In fact, the new tax law includes two parts: one is a tax on the income of gambling operators, and the other is a withholding tax on individual players' winnings, deducted directly by operators before payouts.
For the nation, this is not just about increasing budget revenue. The preamble of the law also explicitly mentions that the purpose is to curb excessive gambling, which is seen as high-risk behavior. Notably, players' income from winnings was previously tax-free.
Players are suffering, and licensed operators are also having a hard time. The new law sends a clear signal: nothing will remain the same. The law also stipulates that operators must also submit 20% of their share of the prize pool to the state. This means that the entire legal industry chain is facing higher operating costs and stricter regulation.
Will the Market Collapse?
The core question is: under such strong opposition, will Senegal's gambling market collapse? Expert Dansu believes the situation may not be so pessimistic. He analyzed that in the current socio-economic environment, gambling (especially sports betting) has become a way for many lower-middle-class people to supplement their income or even sustain their livelihood, forming a complete ecosystem. Although this tax is described by practitioners as "highly restrictive," it is not enough to cause the entire ecosystem to collapse, and it may only deter occasional players who gamble for entertainment.
However, a huge shadow is the emergence of the illegal market. Experts also admit that using unregulated platforms to evade taxes is feasible, but this poses greater risks to players. Although electronic payments in the West African Economic and Monetary Union region are increasingly regulated and transactions are traceable, the government still needs to take responsible measures to prevent the emergence and spread of unofficial platforms.
Ultimately, the impact of this reform will need to await further data from Senegal's National Lottery and Gambling Authority (LONASE) and the tax department for more accurate analysis. For in-depth tracking of global gambling policies and market dynamics, refer to PASA's official website content.
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