France-based betting operator Betclic has withdrawn from the Beninese market after the country introduced a new tax regime for online gambling. The move highlights the growing tension between African governments seeking higher fiscal returns from regulated betting and operators assessing the long-term sustainability of operating under sharply increased tax burdens.

New Tax Framework Triggers Market Exit

Benin’s government approved a revised gambling framework in January 2025, introducing a 25% tax on gross gaming revenue generated by online betting operators. Land-based gambling venues are subject to a significantly lower 10% rate.

The reform was presented as a measure to strengthen regulatory oversight, increase public revenues and limit the influence of unlicensed operators. However, the online-focused structure of the tax, applied to gross revenue rather than net profit, immediately raised concerns among licensed operators.

Betclic confirmed that the new regime made its Beninese operations financially unviable, becoming one of the first international brands to exit the market following the reform.

Online Operators Face Disproportionate Pressure

The 25% levy applies before operating costs, bonuses, marketing spend and platform expenses are deducted, placing a disproportionate burden on online operators. The contrast with the lower tax applied to land-based gambling has further complicated the commercial outlook for digital-first brands.

Industry observers note that such structures can quickly erode margins, particularly in emerging markets where scale is still developing and acquisition costs remain high.

Strategic Shift Toward Côte d’Ivoire

Following its exit from Benin, Betclic is consolidating its West African presence in Côte d’Ivoire, where the regulatory and tax environment is widely viewed as more predictable.

In Côte d’Ivoire, gambling operators are taxed on net profits through standard corporate income tax, alongside a 15% withholding tax on payments to foreign service providers. This structure allows operators to manage costs more effectively while maintaining compliance.

Since establishing its Abidjan office in 2022, Betclic has continued to operate online sports betting and casino products under local supervision, positioning the country as a core growth market within its African strategy.

Wider Implications for West African Markets

Betclic’s departure from Benin serves as an early signal of how aggressive tax policies may reshape West Africa’s regulated gambling landscape. While higher rates may generate short-term revenue, they also risk reducing licensed participation and limiting market competitiveness.

As more African jurisdictions refine their gambling frameworks, the balance between taxation, channelisation and long-term sustainability is likely to remain a central challenge for regulators and operators alike.

Sources: iGaming Afrika, iGaming Today