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The Republic of Benin has implemented a new gambling tax structure under its 2025 Finance Law, aimed at increasing state revenue and improving regulatory control of the country's evolving gambling sector. Effective from January 1, 2025, the law imposes a 10% tax on gross gaming revenue (GGR) from land-based gambling and a 25% tax on GGR from online gambling operations.
Until now, Benin's gambling legislation primarily focused on traditional, land-based betting, leaving digital operators outside formal regulatory frameworks. The new tax regime addresses this gap by formally including online gambling under state regulation. This move targets both domestic and offshore platforms, helping to recapture revenue from unlicensed operators and bring them into the legal fold.
The government projects that the new system will generate around $25 million annually, with funds allocated to social welfare and infrastructure development projects.
To ensure compliance, the National Lottery Authority (LONAB) will oversee enforcement of the new rules. Recognizing the challenges in curbing illegal gambling, particularly online platforms that operate without licenses and attract players with higher payouts, the government plans to introduce a digital monitoring system. This system will track gambling activities in real time, helping to prevent underage betting, money laundering, and other illicit practices.
Benin is also working with neighboring countries in West Africa to align gambling regulations, including harmonizing licensing standards and anti-money laundering protocols. These efforts reflect a broader commitment to building a more transparent, responsible, and well-regulated gaming environment throughout the region.
With the introduction of these reforms, Benin is positioning itself as a forward-thinking market, balancing economic opportunity with regulatory responsibility in the gambling sector.
Sources: iGaming Afrika, Focus Gaming News, Gaming NewsByte