The Ministry of Finance in Tanzania has announced the introduction of a 5% excise duty on betting stakes, set to take effect in the 2026/27 financial year, beginning on July 1. Khamis Mussa Omar, Tanzania's Minister of Finance, revealed the details as part of the budget plan for the upcoming financial period.
This budget includes the imposition of a 5% excise duty calculated on the value of all bets placed in various gambling activities. This encompasses both land-based and online sports betting, casino gaming, slot machine operations, and virtual gaming.
The government anticipates that this new tax will raise approximately TZS74.5 billion ($28.4 million) in revenue. Of this amount, 10% will be allocated to the Gaming Board of Tanzania to enhance the regulation and management of gambling activities, aiming to mitigate gambling addiction within the country.
The Minister emphasized that gambling has contributed to a decline in the workforce, as many young people are drawn to gambling instead of engaging in productive economic activities.
In terms of gambling performance, Tanzania generated $463.3 million in gross win from gambling activities in 2025, according to H2 Gambling Capital. The firm predicts that this figure will surpass $1 billion by the end of 2031, with online gambling expected to account for $918.9 million of this total.
While there are concerns that the new excise duty could spur an increase in illegal gambling, H2’s data suggests that only 4.5% of Tanzania’s interactive gross win in 2025 stemmed from the black market.
Other African nations have seen similar tax increases recently. For instance, Uganda introduced a 30% harmonized tax on betting and gaming earlier this year, along with a 15% tax on net winnings. In Kenya, regulators imposed a 5% fee on all betting wallet withdrawals last year, alongside a 5% excise tax on deposits. Additionally, Lagos State in Nigeria implemented an immediate 5% withholding tax on player winnings in February of this year.
