A new tax charging users 0.5% on mobile money transactions has officially taken effect in Senegal, three months after the cabinet introduced the bill.
Enacted under Law n°2025-17, the Tax on Money Transfers (TTA) applies to mobile money services, banks, post offices, and card payments. The charge is capped at CFAF2,000 ($3.60), with exemptions remaining for salaries, scholarships, and transfers under CFAF20,000.
Impact on the Gambling Sector
This levy adds a direct cost to every deposit and withdrawal made by online gamblers in the country, compounding the financial pressure on players who are already navigating major regulatory changes.
This development follows the November 1 enforcement of a 20% tax on winnings by the Senegal National Lottery (LONASE). Described as one of the most sweeping reforms in the nation’s history, this deduction applies automatically at both physical betting shops and digital platforms.
“The Senegalese National Lottery (LONASE) informs its valued customers that, in accordance with Law No. 17/2025, a 20 per cent tax will now be applied to winnings,” the operator stated in its announcement. This tax is withheld at the source, meaning players no longer handle separate tax payments.
Public Backlash and Market Risks
The cumulative effect of these taxes has sparked significant unrest. Following the initial rollout of the winnings tax, bettor associations organized a three-day strike that spread across major cities, with local reports describing the tax as a “scam.”
Despite protests and warnings from experts that these costs may drive gamblers toward unlicensed offshore sites, the government has proceeded with the reforms. Major providers like Orange Money have already begun collecting the new 0.5% transaction levy.
