Senegal betting sector calls for sustainable tax framework as burden hits 128% of revenue
Licensed operators say combined taxes, LONASE fees and regulatory charges could push the sector beyond a viable operating model, warning the pressure threatens the survival of legal businesses.
Senegal.- Senegal’s regulated betting industry has issued a strong warning that the combined tax and regulatory burden on operators can reach 128 per cent of revenue, a level the sector says threatens the viability of licensed businesses and the stability of the legal market.
Representatives of the Collective of Licensed Online Gaming and Betting Companies (The Collective) raised the concerns during a press briefing on March 17, saying they wanted to “set the record straight and clarify the public debate” following remarks made by the National Lottery of Senegal (LONASE) at the Prime Minister’s office days earlier.
The dispute centres on how betting revenues are shared between private operators and the state-backed lottery. Director-General Toussaint Manga had said LONASE received between 15 per cent and 18 per cent of operators’ revenues before contracts were renegotiated, according to Seneweb.
But Seydi Barham Thiam, spokesperson for the Collective, strongly rejected that claim. “This presentation of revenue sharing does not reflect reality at all. At no point did the operators keep 85 per cent of their revenue for themselves,” Thiam said, according to Seneweb.
Operators say the financial pressure has intensified following what they describe as a “unilateral and illegal” increase in the fee paid to LONASE. According to the Collective, the fee has been raised to 30 per cent, up from 15 per cent to 17 per cent initially stipulated in contracts. Operators said the royalty paid to LONASE is separate from other taxes applied to the sector (including the country’s 20 per cent tax on gambling winnings).
The cumulative impact of taxes, royalties and other charges, they argue, is pushing the industry beyond a viable operating model. “By combining all the levies, we reach a level of 128 per cent of revenue. A situation that is simply unsustainable for a business,” the Collective said.
The Collective says the figure reflects the combined impact of multiple taxes, royalties and regulatory charges applied to betting operators. “In other words, legitimate businesses are being subjected to pressure that defies all economic logic,” Thiam added.
Operators warn legal market risk
The Collective warned that the consequences could extend beyond operator balance sheets. If the current fiscal framework remains unchanged, they say the legal market itself could begin to unravel.
“At this rate, it will lead to the gradual disappearance of legal operators,” the Collective warned, noting that the loss of licensed businesses could ultimately undermine state revenues and employment in the sector.
Operators also cautioned that excessive pressure on the regulated market could create space for illegal betting activity to flourish. “When legal operators disappear, the market is left to clandestine actors, who are a real cancer for the state,” the Collective said.
Mamadou Badiane, a tax expert advising the Collective, echoed calls for a reassessment of the current fiscal approach. “Taxation must be intelligent, not repressive,” Badiane said, while noting that the igaming sector contributes “considerably” to public revenues.
Despite the escalating tensions, industry representatives insist they remain open to dialogue with authorities in search of a sustainable framework. The Collective said: “We call for the immediate opening of a framework for constructive dialogue. There is still time to act. We are not seeking privileges or preferential treatment. We are simply asking for a viable, clear, fair and sustainable economic framework.”
