Senegal’s proposed mobile money tax sparks concerns in online gambling sector
The proposed levy on digital payments could increase transaction costs, disrupt betting platforms, and challenge Senegal’s growing digital gambling market.
Senegal.- Senegal’s proposed mobile money tax is raising concerns across the country’s online gambling sector, which relies heavily on digital payments for deposits and withdrawals. The move is set to increase transaction costs, potentially deterring bettors, reducing platform revenues and slowing growth in Senegal’s rapidly expanding digital gambling market.
On September 17, the National Assembly adopted Draft Law No. 17/2025, which would amend the General Tax Code to introduce levies on digital financial services. The draft law proposes a 0.5 per cent tax on mobile money transfers and a 1 per cent tax on merchant payments. The measure still requires presidential approval and official publication before it becomes enforceable.
The government indicated that the tax could raise CFA230bn (€360m) over three years to support Senegal’s 2025–2028 Economic and Social Recovery Plan. Finance Minister Mamadou Moustapha Ba said at the National Assembly that taxing mobile money is a matter of “fairness and tax justice” and that the digital sector should not be exempt if other industries are required to pay taxes.
Industry groups have voiced concerns about the potential impact, with the Organisation of Information and Communication Technology Professionals of Senegal (Optic), a professional association supporting the interests of operators, developers and service providers, highlighting the risks to digital platforms.
“Taxes on customer transactions, applied as a percentage of the transfer amount, are generally passed on to tariffs and ultimately borne by customers. In countries where they were introduced, they led to higher living costs and reduced purchasing power. Taxes applied directly on operator revenue or margins are borne by operators themselves,” said Optic, according to Ecofin.
Mobile money has become essential in Senegal. With fewer than 30 per cent of the population holding traditional bank accounts, services like Orange Money, Wave and Free Money serve as the “people’s bank”, enabling users to pay bills, support small businesses and make everyday transactions. Between 2013 and 2023, registered mobile money accounts grew from 7 million to 38 million, while transaction volumes tripled to CFA128bn (€230m).
Rising taxes threaten Senegal’s digital economy
The proposed mobile money tax comes in the wake of betting operator pawaTech’s exit from Senegal, highlighting concerns over high fees, regulatory hurdles and a payment monopoly.
pawaTech, the company behind the betPawa brand, said in a press release: “High taxes, a payment monopoly and significant regulatory fees have placed local operators at a clear disadvantage compared to offshore operators. This has created an uneven playing field where locally regulated businesses cannot operate compliantly and deliver the competitive products and offers that customers expect.”
The departure underscores how existing regulatory and payment channel constraints, alongside the proposed tax, could disrupt platforms that rely on mobile wallets for deposits and withdrawals.
Meanwhile the Senegalese Association of Payment Establishments and E-Money Issuers (ASEPAME) proposed an alternative: taxing operator revenues at 2.5 per cent. This would place the tax on providers rather than players, helping betting platforms avoid higher fees and keep operations running smoothly.
ASEPAME said: “This approach would directly generate CFA43bn (€67m) through the new levy over three years. More importantly, by preserving sector growth, it would allow existing taxes (TAF, VAT, corporate income tax, payroll taxes) to yield an additional CFA489bn (€760m). The total of CFA530bn (€823m) would far exceed the government’s target of CFA230bn (€360m).”
