Senegal’s government has moved forward with Draft Law No. 17/2025, aiming to implement new taxes on digital transactions that could have a significant impact on the burgeoning online gambling industry. The proposal, which includes a 0.5% tax on mobile money transfers and a 1% tax on merchant payments, received approval from the National Assembly on September 17. Now, it awaits the final nod from the president. If enacted, this law could increase the cost of everyday digital payments, including those made for deposits and withdrawals on online gambling platforms.
The online gambling sector in Senegal, one of Africa’s most dynamic markets, could face increased operational costs and reduced growth due to these taxes. Industry leaders are voicing concerns that the additional financial burden would likely be passed on to consumers, potentially reducing betting activity. The government, however, anticipates that the tax will generate CFA230 billion (€360 million) over a three-year period, funds earmarked to support Senegal’s 2025–2028 Economic and Social Recovery Plan.
Mamadou Moustapha Ba, the Finance Minister, defended the tax, emphasizing the need for fairness across industries. He stated that the digital sector should contribute to public finances just as traditional sectors do. In contrast, the Organisation of Information and Communication Technology Professionals of Senegal (Optic) has warned that such taxes might increase living costs and erode purchasing power, as they are usually passed down to consumers. This move, they argue, could potentially stunt the growth of the digital economy, which spans e-commerce, fintech, and online betting.
Mobile money services like Orange Money, Wave, and Free Money are critical to the daily financial transactions of Senegalese citizens, especially since less than 30% of the population has access to conventional bank accounts. These platforms facilitate bill payments, money transfers, and small purchases, including bets on digital gaming platforms. Over the past decade, from 2013 to 2023, mobile money accounts in the country surged from 7 million to 38 million, with transaction volumes reaching CFA128 billion (€230 million). This growth has not only fostered financial inclusion but also propelled the online gambling market.
However, critics caution that the new tax could disrupt this ecosystem by increasing costs for depositing and withdrawing funds, potentially harming the online gambling sector. The recent exit of pawaTech, the operator behind the betPawa brand, highlights the pressure on locally licensed operators. The company cited prohibitive taxes, a payment monopoly, and regulatory fees as reasons for its withdrawal, illustrating the competitive disadvantage faced by domestic firms against offshore platforms not subject to similar costs.
In response to these concerns, the Senegalese Association of Payment Establishments and E-Money Issuers (ASEPAME) has proposed an alternative solution: a 2.5% tax on operator revenues instead of customer transactions. The association argues that this method would generate CFA43 billion (€67 million) over three years while still allowing the digital economy to thrive. Additionally, ASEPAME suggests that by fostering industry growth, the government could collect an extra CFA489 billion (€760 million) in existing taxes like VAT and corporate income tax, far exceeding the targeted CFA230 billion (€360 million).
The debate over the mobile money tax highlights a broader tension between fiscal policy and digital innovation in Senegal. While the government insists that the tax will bolster public finances, stakeholders in the industry worry that it could deter investment and slow the development of local digital platforms. The decision ultimately rests with the presidency, which will decide whether the proposed levy becomes law.
Meanwhile, public consultation on the proposed measures continues, with industry groups advocating for reforms that strike a balance between state revenue needs and sustainable digital growth. The outcome of this debate will have significant implications not only for the online gambling sector but for Senegal’s broader digital economy.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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