A new tax on digital transactions could reshape Senegal’s online gambling landscape, raising costs and slowing growth in one of Africa’s most dynamic markets.
Senegal’s government has proposed new levies on digital payments that could have far-reaching effects on the country’s fast-growing online gambling sector. The move forms part of Draft Law No. 17/2025, which seeks to amend the General Tax Code and introduce a 0.5% tax on mobile money transfers and a 1% tax on merchant payments.
The law, adopted by the National Assembly on 17 September, still awaits presidential approval before coming into force. If approved, it could make everyday digital payments more expensive, including deposits and withdrawals on online betting platforms.
Betting operators face rising costs
Industry players warn that the tax could increase transaction fees and reduce betting activity.
The government expects the measure to raise CFA230 billion (€360 million) over three years to support Senegal’s 2025–2028 Economic and Social Recovery Plan. Finance Minister Mamadou Moustapha Ba told lawmakers that taxing mobile money is a matter of fairness and that the digital sector should contribute to public funds like other industries.
However, the Organisation of Information and Communication Technology Professionals of Senegal (Optic) expressed concern that such taxes could burden consumers. The association said taxes applied as a percentage of customer transactions tend to be passed on to users, leading to higher living costs and lower purchasing power.
According to Optic, this approach risks slowing growth across the digital economy, which includes sectors such as e-commerce, fintech, and online betting.
Mobile money drives digital gambling growth
Mobile payments power Senegal’s online gambling market and are vital to daily financial life.
Fewer than 30% of Senegalese citizens have traditional bank accounts, making mobile wallets such as Orange Money, Wave, and Free Money essential tools for everyday transactions. These services are widely used to pay bills, transfer funds, and make small purchases, including bets on digital gaming platforms.
Between 2013 and 2023, the number of registered mobile money accounts grew from 7 million to 38 million, while transaction volumes reached CFA128 billion (€230 million). This rapid expansion has supported both financial inclusion and the growth of Senegal’s online gambling industry.
A tax on mobile money, critics warn, could disrupt that ecosystem by increasing the cost of deposits and withdrawals for players.
Operators warn of uneven competition
pawaTech’s exit highlights growing pressure on regulated businesses.
The proposed tax follows the recent exit of pawaTech, the operator behind the betPawa brand, which cited high taxes, a payment monopoly, and regulatory fees as major challenges. The company said these conditions made it difficult for locally licensed operators to compete with offshore platforms that are not subject to the same costs.
pawaTech’s departure underscores concerns that new taxes could make compliance even more difficult for domestic firms already struggling with narrow margins.
Industry seeks alternative solution
Payment associations propose taxing operator revenues instead of customer transactions.
The Senegalese Association of Payment Establishments and E-Money Issuers (ASEPAME) has suggested a 2.5% tax on operator revenues as an alternative to the proposed customer transaction levy. The group argued that this approach would generate CFA43 billion (€67 million) over three years while allowing the digital economy to continue growing.
ASEPAME said that by maintaining industry expansion, the government could earn an additional CFA489 billion (€760 million) in existing taxes such as VAT and corporate income tax, exceeding the government’s target of CFA230 billion (€360 million).
Wider effects on Senegal’s digital economy
The mobile money tax debate reflects a broader tension between fiscal policy and digital innovation.
Mobile money has become a foundation of Senegal’s digital economy, connecting millions of citizens and powering key industries, including online gaming. A new transaction tax could disrupt that progress by raising costs for both users and businesses.
While the government argues that the tax will strengthen public finances, industry stakeholders fear it could discourage investment and slow the growth of local platforms. The final decision now rests with the presidency, which will determine whether the levy becomes law.
Good to know: Public consultation on the proposed measures continues as industry groups push for reforms that balance state revenue needs with sustainable digital growth.
