Representatives of the Collective of Licensed Online Gaming and Betting Companies<\/strong> (The Collective) raised the concerns during a press briefing on March 17, saying they wanted to \u201cset the record straight and clarify the public debate\u201d following remarks made by the National Lottery of Senegal <\/strong>(LONASE) at the Prime Minister\u2019s office days earlier.<\/p>\n\n\n\n The dispute centres on how betting revenues <\/strong>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<\/strong> of operators\u2019 revenues before contracts were renegotiated, according to Seneweb.<\/p>\n\n\n\n But Seydi Barham Thiam, spokesperson for the Collective, strongly rejected that claim. \u201cThis presentation of revenue sharing does not reflect reality<\/strong> at all. At no point did the operators keep 85 per cent<\/strong> of their revenue for themselves,\u201d Thiam said, according to Seneweb.<\/p>\n\n\n\n Operators say the financial pressure <\/strong>has intensified following what they describe as a \u201cunilateral and illegal<\/strong>\u201d 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<\/strong> applied to the sector (including the country\u2019s 20 per cent tax on gambling winnings).<\/p>\n\n\n\n The cumulative impact of taxes, royalties and other charges<\/strong>, they argue, is pushing the industry beyond a viable operating model. \u201cBy combining all the levies, we reach a level of 128 per cent of revenue. A situation that is simply unsustainable for a business,\u201d the Collective said.<\/p>\n\n\n\n The Collective says the figure reflects the combined impact <\/strong>of multiple taxes, royalties and regulatory charges applied to betting operators. \u201cIn other words, legitimate businesses are being subjected to pressure that defies all economic logic<\/strong>,\u201d Thiam added.<\/p>\n\n\n\n The Collective warned that the consequences<\/strong> could extend beyond operator balance sheets. If the current fiscal framework remains unchanged, they say the legal market itself could begin to unravel.<\/p>\n\n\n\n \u201cAt this rate, it will lead to the gradual disappearance<\/strong> of legal operators,\u201d the Collective warned, noting that the loss of licensed businesses could ultimately undermine state revenues and employment <\/strong>in the sector.<\/p>\n\n\n\n Operators also cautioned that excessive pressure <\/strong>on the regulated market could create space for illegal betting activity to flourish. \u201cWhen legal operators disappear, the market is left to clandestine <\/strong>actors, who are a real cancer for the state,\u201d the Collective said.<\/p>\n\n\n\n Mamadou Badiane, a tax expert<\/strong> advising the Collective, echoed calls for a reassessment of the current fiscal approach. \u201cTaxation must be intelligent<\/strong>, not repressive,\u201d Badiane said, while noting that the igaming sector<\/strong> contributes \u201cconsiderably\u201d to public revenues.<\/p>\n\n\n\n Despite the escalating tensions, industry representatives insist they remain open to dialogue<\/strong> with authorities in search of a sustainable framework. The Collective said: \u201cWe 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<\/strong> and sustainable economic framework.\u201d<\/p>\n\n\nOperators warn legal market risk<\/h2>\n\n\n\n
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