During the fiscal year that ended in June 2026, Tanzania’s gaming industry generated tax revenue amounting to TZS307.8 billion ($116.2 million), as reported by James Mbalwe, the director general of the Gaming Board of Tanzania. This surge can be attributed to the increased accessibility of smartphones and the growth of digital payments, which have significantly influenced the country’s gambling landscape.
Mbalwe explained that the upward trend in tax revenue reflects the general expansion of the gaming sector. The figure announced corresponds to the 2025/26 financial year. Earlier reports from the board had suggested consistent growth in gaming tax revenue, a tendency that has persisted into the recent fiscal year.
Mobile technology’s role in this growth is notable. Mbalwe cited the widespread ownership of mobile phones, which has facilitated easier access to online gambling—specifically sports betting and casino games—eliminating the need for physical locations. He remarked that advancements in electronic payment methods have streamlined deposits and withdrawals, enticing more people to participate in gaming.
He noted, "The payment transactions (wagering and withdrawal of winnings) have been hugely simplified and made convenient. This has therefore attracted more punters to participate in gaming." Mbalwe attributes the market's expansion to Tanzania's youthful demographic and their comfort with digital entertainment. The shift from traditional retail gambling to online gaming has altered the revenue landscape within the sector, with online games now leading in revenue generation.
"Before 2016, the biggest chunk of revenue came from mortar and brick casinos, followed by slot machine operations. This scene slowly started to shift after online games picked up, where at the moment revenue from online-based games is on top," he stated.
Mbalwe also highlighted that legal and economic reforms have opened the gaming industry to private investments. While the national lottery remains government-owned yet privately managed, other gaming operations are exclusively privately owned and accessible to both domestic and international investors. “The sector is legally recognized and there is an established entity to regulate it,” he affirmed. He mentioned also that a proposed 5% excise duty on betting stakes had not been instituted, noting, “Excise duty of 5% was shelved, so the status quo has remained the same.”
The Gaming Board is actively addressing issues surrounding illegal slot machines. Over the last financial year, more than 3,000 illegal machines were confiscated, predominantly those operated by Chinese nationals. Mbalwe commented, “The efforts have paid dividends as the number of reported incidents of illegal operations has significantly gone down.” However, he acknowledged that illegal operators are adapting by relocating to areas that are less policed, complicating enforcement efforts.
He emphasized the role of local government authorities in identifying and reporting illegal machines more effectively due to their widespread presence. “Collaboration with local government authorities will hugely facilitate timely enforcement and hence tame illegal machine operations in the country,” he noted.
In terms of player protection, Tanzania offers a self-exclusion mechanism allowing individuals to request their details be circulated among gambling establishments to deny them access. However, Mbalwe described the process as outdated and insufficient, advocating for an electronic, real-time monitoring system to streamline self-exclusion. “This will entail setting up an electronic central database to monitor self-excluded players,” he revealed, stressing the need for stronger legislative measures to enhance player protection and responsible gambling efforts.
Additionally, he acknowledged the challenges posed by unregulated online gambling platforms, which remain difficult to govern due to their transnational nature. While licensed businesses are restricted to using certified platforms, Mbalwe pointed out ongoing collaboration with regulatory bodies and mobile companies to combat unregulated gambling activities. “The plan ahead is for the board to have its own tools that will be used to prevent or get rid of unregulated platforms from accessing the gaming market,” he stated.
On the horizon is the Gaming Regulatory Africa Forum (GRAF) conference set to take place in Tanzania in 2027, where Mbalwe expressed hope the board can showcase the gaming industry’s footprint. The agenda will focus on tackling illegal online operations, discussing online platform services, and addressing taxation issues. Mbalwe asserted, “While this is a cross-border crime, it has been noted that most regulators tackle this problem in silos, by employing tools which cannot cater beyond the geographical mandate.”
The Gaming Board plans to prioritize enhanced revenue collection through electronic monitoring and combatting illegal gaming activities in both digital and physical realms in the coming year. Mbalwe concluded by emphasizing Tanzania’s readiness to host delegates at the GRAF conference and to tackle practical regulatory challenges through expert insights and discussions. He expressed optimism for the event, aiming for meaningful engagement and the development of effective solutions.
