Togo has introduced a 5 percent tax on lottery winnings of CFA500,000 (US$850) or more, the National Lottery of Togo (LONATO) announced, as part of efforts to broaden the country’s tax base.
The measure, effective January 1, 2026, is automatically applied at the time of payout. Under the new rule, a winning ticket of CFA500,000 will see CFA25,000 (US$42.50) withheld before the prize is paid to the bettor. Proceeds from the levy are collected by the Togolese Revenue Office (OTR).
Authorities have been preparing the policy for nearly two years. Lawmakers reviewed the proposal in 2024 as part of wider fiscal reforms aimed at mobilising domestic revenue. LONATO, a government-operated entity, plays a key role in ensuring compliance and facilitating implementation.
Togo joins several West African countries that have adopted similar measures on gambling winnings. Senegal introduced a 20 percent withholding tax on regulated gaming prizes in 2025, applying the levy to both physical and digital betting platforms. Côte d’Ivoire implemented a 7.5 percent tax on winnings above CFA1 million (US$1,700) under its 2018 finance annex, while Burkina Faso’s 2025 finance law set a harmonised gambling tax of 5 percent, matching Togo’s rate.
The move reflects a broader regional trend to integrate gambling activities into formal tax systems, though governments continue to face challenges around regulation, compliance, and formalisation of betting operations.
In Togo, officials appear well positioned to enforce the new tax, given LONATO’s central role in the national gambling market and its existing alignment with the revenue authority. Authorities say the levy is one of several measures to strengthen public finances and support fiscal sustainability.
