Benin lottery operator attributes 2025 profit decline to illegal gambling surge
The National Lottery of Benin’s profit plunged 36 per cent in year-on-year terms in 2025.
Benin.- The National Lottery of Benin (LNB) reported a 36 per cent fall in net profit in 2025, with management pointing to competition from unlicensed gambling operators and the absence of a one-off gain booked in 2024. Revenue slipped 4 per cent to 98.6bn West African CFA francs (€150.4m), as illegal slot machines and unregistered betting sites spread across the market.
According to management, the profit decline was also affected by a tax charge that more than doubled during the year. Even so, underlying performance improved, with value added up 22 per cent and gross operating surplus rising 34 per cent.
Online gaming continued to drive growth, accounting for 68 per cent of total revenue and expanding by 18 per cent year-on-year. LNB noted that digital channels are now central to customer engagement, particularly as smartphone access and mobile money adoption increase across Benin and neighbouring markets.
LNB operates under a state-backed monopoly framework established by a 2004 law, with around 3,000 sales points nationwide. Its flagship Loto 5/90 product remains the main revenue driver, offering low-cost entry at 100 CFA francs (€0.15) per game. The operator also channels a portion of its earnings to the public treasury.
The rise of offshore and unlicensed operators reflects a broader trend across West Africa, where regulatory gaps and expanding digital access have enabled cross-border gambling platforms to grow. These operators typically function without tax obligations or payout restrictions, allowing them to offer more competitive odds than state-regulated firms.
In response, LNB is preparing a unified digital platform covering sports betting, casino games and virtual products, alongside the integration of mobile money services to widen access. Management expects improved performance in 2026, although it acknowledged that competition from informal operators is likely to persist.
The company’s financial position remains stable, with a financial autonomy ratio of 2.06, indicating strong equity coverage of liabilities. However, the shift towards digital competition is expected to reshape margins and enforcement priorities across the sector going forward.
