Benin Republic government imposes tax on gambling
This is the first time Benin Republic will tax online gambling activities.
Benin Republic.- The Benin National Lottery Authority (LONAB) is facing an uphill battle in its efforts to regulate the gaming industry. Despite its enforcement actions, unlicensed gambling venues continue to increase in number, evade taxes and lure customers with bigger payouts.
Yet, one of the primary reasons the government regulates gambling in its jurisdiction is to generate revenue. On December 12, 2024, Benin introduced taxes on gambling to increase its revenue streams and tighten its regulatory grip within the gambling sector.
The government officially adopted Law No. 2024-34 (financial law 2025), marking its entry into the list of African countries that tax gambling activities.
The new tax system, which began at the beginning of the year, establishes a comprehensive framework governing both land-based and online gambling. This represents a major shift from previous regulations from 2006, which only covered traditional forms of gambling. It also seeks to reclaim revenue lost to offshore operators and unregulated online gambling sites.
Under the new legislation, land-based casinos must pay a 10 per cent tax on gross gaming turnover, while online gambling operators are taxed at 25 per cent. The bill categorises online platforms as websites, mobile apps and USSD-based lotteries.
The government projects that this regulatory reform will bring in about $25m annually, which will be allocated towards social and infrastructure projects that benefit citizens.
In addition to generating revenue, the new framework was implemented to strengthen player protection, safeguard minors and prevent financial crimes like money laundering and terrorism financing.
LONAB is responsible for ensuring compliance, but enforcing the laws and shutting down illegal operators remains a daunting task.
Industry stakeholders want the government to implement stricter regulations and enhance enforcement to tackle illegal gambling and create a safer and more regulated gaming sector.
