Togo’s 5% lottery winnings tax faces pushback as government defends budget rationale

Players say the new withholding dulls the excitement of big wins and could fuel offshore play, while authorities frame it as a finance-law measure to widen revenues and strengthen oversight.

Togo has introduced a 5% withholding tax on lottery winnings of CFA 500,000 (€760) or more, with the measure in force since 1 January 2026 and applied directly at payout by the national lottery operator LONATO, with proceeds routed to the Office Togolais des Recettes (OTR).

Government-linked communications describe the levy as part of the 2026 finance law and position it as a tool to broaden the tax base and reinforce the regulation of games of chance, with examples showing a CFA 500,000 prize resulting in a CFA 25,000 deduction before payment to the winner.

But the measure is drawing criticism in local and industry reporting. Some players argue the 5% cut reduces the “thrill” of winning and warn it may push part of demand toward unregulated gambling platforms that don’t apply deductions at source.

For the market, the key question is behavioural: if the tax remains limited to larger wins and collection stays automatic through LONATO, it may stabilise as a “new normal” for mainstream lottery play—but sustained dissatisfaction could accelerate migration to informal channels unless enforcement and consumer messaging keep pace.