Benin’s national lottery sees profits tumble despite IPO success
The LNB attributes the downturn to growing competition that has seen private gaming companies and unlicensed operators gain ground in the market.
Benin.- The National Lottery of Benin (LNB) has released its financial results for the first half of 2025, revealing a significant drop in profits. The operator reported a net profit of 841 million CFA francs, (€1.28m), a decline of 88 per cent compared to the same period in 2024.
Revenue also slipped by 6 per cent, reaching 48.2 billion CFA francs (€73.48m). The LNB, which oversees lottery games and related activities in Benin, attributes the downturn to growing competition that has seen private gaming companies and unlicensed operators gain ground in the market and lure players away from its traditional offerings.
In 2024, the company had a banner year, posting a net profit of 7.16 billion CFA francs (€10.9m), up 83 per cent from the previous year, thanks in part to its initial public offering on the BRVM stock exchange in Abidjan.
That IPO, completed in December 2024, raised about $69m(€65.86m) by selling nine million shares at 4,800 CFA francs (€7.32) each. This milestone made LNB the first Beninese public company and lottery operator to list on the regional exchange. Shares debuted with a 4.1 per cent gain but have since lost about 8 per cent in value, reflecting investor concerns over the recent performance.
To address the challenges, LNB plans to introduce an online sports betting and virtual gaming platform. Company officials believe expanding into digital services will attract younger players and help regain lost market share. Since over half of the company’s 2024 revenue already came from online channels, this move seems like a strategic step to build on that momentum.
For everyday people in Benin, who enjoy lottery games for entertainment and the occasional windfall, the new platform promises more betting options, but also raises concerns about the risks of unregulated betting.
Investors, including those who bought shares during the IPO, face uncertainty as the company navigates this transition. If successful, the new platform could boost earnings and support dividends like the 275.5 CFA francs (€0.42) per share paid out in 2024.
However, failure to compete effectively might lead to further losses, affecting jobs at the state-run firm and government revenue from gaming taxes.
Overall, LNB’s situation shows the pressures on traditional operators in Africa’s growing gaming industry, where digital innovation is key to survival. The company, advised by firms like Deloitte during its listing, will need to build on its 2024 revenue of 102.5 billion CFA francs (€156.2m) to regain momentum.
