Senegal Mobile Money Tax Threatens Online Gambling Platform Operations
Senegal’s National Assembly has adopted legislation introducing taxes on digital financial services that could significantly impact the country’s online gambling sector. Meanwhile, the proposed 0.5% levy on mobile money transfers and 1% tax on merchant payments threaten to increase transaction costs.
Government Revenue Goals Challenge Digital Gambling Growth
The government projects the tax will generate €360 million over three years. Subsequently, these funds would support Senegal’s 2025-2028 Economic and Social Recovery Plan. Finance Minister Mamadou Moustapha Ba described the levy as a matter of “fairness and tax justice.” Moreover, he argued that the digital sector should not receive exemptions while other industries face taxation.
However, industry groups have raised concerns about the measure’s impact on digital platforms. The Organisation of Information and Communication Technology Professionals of Senegal warned about risks to online services. Therefore, taxes on customer transactions typically increase tariffs and reduce purchasing power. Consequently, bettors may face higher costs that could deter platform usage and reduce operator revenues.
Operator Exit Highlights Regulatory Pressure
Betting operator pawaTech recently withdrew from Senegal, citing unfavorable market conditions for locally regulated businesses. The company stated that “high taxes, a payment monopoly and significant regulatory fees have placed local operators at a clear disadvantage compared to offshore operators.” Additionally, this situation creates an uneven playing field where compliant businesses cannot compete effectively.
Mobile money services have become essential in Senegal, where fewer than 30% of the population holds traditional bank accounts. Meanwhile, registered mobile money accounts grew from 7 million to 38 million between 2013 and 2023. The Senegalese Association of Payment Establishments proposed an alternative approach: taxing operator revenues at 2.5% instead of transaction values. Furthermore, this method would generate €823 million over three years, exceeding the government’s €360 million target while preserving sector growth.
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