Togo Imposes 5% Tax on Lottery Winnings Above CFA500,000

Public Management

Wednesday, 07 January 2026 10:26

Togo Imposes 5% Tax on Lottery Winnings Above CFA500,000

LONATO applies a 5% tax withholding on lottery winnings of CFA500,000 or more starting January 1, 2026.
The measure supports Togo’s effort to broaden its tax base and channels proceeds to the Togo Revenue Office (OTR).
Several West African countries, including Senegal, Côte d’Ivoire, and Burkina Faso, have adopted similar gambling tax policies.

Starting January 1, 2026, Togo applies a 5% tax withholding on any winnings from tickets issued by the National Lottery of Togo (LONATO) equal to or above CFA500,000, according to a recent announcement by the lottery operator.

LONATO applies the measure automatically at the time of payout. As a result, a CFA500,000 winning ticket triggers a CFA25,000 deduction before payment to the bettor. The Togolese Revenue Office (OTR) collects the proceeds.

The government had prepared the measure for nearly two years. Lawmakers examined the proposal in 2024 as part of broader fiscal reforms. Authorities now deploy the tax as one of several tools designed to expand the national tax base.

Togo does not stand alone in taxing gambling winnings. Senegal introduced a 20% withholding tax on regulated gaming winnings in 2025. Authorities applied the levy starting November 1, 2025, across both physical betting networks and digital platforms.

Côte d’Ivoire previously adopted a similar approach. The country introduced a 7.5% tax on gaming winnings exceeding CFA1 million under its 2018 fiscal annex. Burkina Faso has also moved in the same direction. The country’s 2025 finance law aims to harmonize gambling taxation around a 5% rate, matching Togo’s level.

Beyond Togo’s rollout of the measure this year, the region shows a broader trend toward integrating gambling activities into standard tax frameworks. However, governments still face regulatory and formalization challenges in the sector.

In Togo, authorities appear well positioned to address these issues. LONATO operates as a parastatal entity and plays a central role in the national gambling market. The operator already aligns closely with the OTR on tax compliance, easing implementation risks.

This article was initially published in French by Ayi Renaud Dossavi

Adapted in English by Ange Jason Quenum

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