Tanzania's gaming sector generated TZS307.8 billion ($116.2 million) in tax revenue for the financial year ending June 2026, as reported by James Mbalwe, director general of the Gaming Board of Tanzania. The growth is attributed to the increasing accessibility of mobile devices and the proliferation of digital payment methods, transforming the nation's gambling landscape.
Mbalwe explained that smartphone penetration and the shift toward online gaming products, particularly sports betting and casinos, have significantly fueled this rise. He acknowledged the challenges that have arisen alongside this expansion, such as illegal slot machines, unregulated online platforms, and inadequate systems for player protection.
"The annual tax revenue from the gaming sector has been increasing year in and year out, owing to the growth of the sector," Mbalwe stated. The recent figure corresponds to the 2025/26 financial year and reflects a continuation of the upward trend highlighted in previous reports.
He highlighted that improved access to mobile technology has made online gambling much more user-friendly. With mobile devices enabling easier access to betting than ever before, 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 linked the market growth to Tanzania's youthful demographic, which is comfortable with digital entertainment. He pointed out the notable shift in revenue sources, stating, "Before 2016, the biggest chunk of revenue came from mortar and brick casinos followed by slot machines. This scene started to shift after online games picked up, where revenue from online-based games is now at the top."
Legal and economic reforms have opened the sector to private investment, with all gaming operations privately owned, except for the government-run national lottery. Mbalwe commented, "The sector is legally recognized and there is an established entity to regulate the sector," and added that a proposed 5% excise duty on betting stakes was ultimately not implemented.
On the physical gambling front, the board has focused on removing illegal slot machines, seizing over 3,000 units last year, primarily operated by Chinese nationals. Mbalwe expressed confidence in the effectiveness of these operations, stating, "The efforts have paid a dividend as the number of reported incidents of illegal operations has significantly gone down," although he acknowledged that illegal operators often relocate to areas harder for governance to monitor.
He encouraged collaboration with local government authorities to combat illegal gambling. "Unlike the board, the local government authority has full presence in all corners of the country, making it easier to detect and report illegal operations," he said.
In terms of player protection, Tanzania currently has a self-exclusion process that Mbalwe described as manual and insufficient. The board plans to implement electronic real-time monitoring through a central database, which would be established via public-private partnerships. He emphasized, "This will entail setting up an electronic central database to monitor self-excluded players, making it easier to detect and stop victims from re-engaging in gaming."
Mbalwe noted that while the gaming framework restricts unregulated online platforms from entering Tanzania's market, illegal operations still pose a significant challenge. Regulating these platforms is complex since they often operate across borders. He mentioned the intent to develop internal tools for preventing these platforms from accessing the market and highlighted ongoing efforts with telecommunications and cybersecurity authorities to monitor these illegal sites.
Looking to the future, Mbalwe announced that Tanzania will host the Gaming Regulatory Africa Forum (GRAF) conference in 2027. He sees it as a chance to highlight the industry's footprint, discussing illegal online operations, platform services, and taxation. "Online illegal operations are increasingly becoming a regulatory staple challenge," he remarked, noting the need for a more collaborative approach to this issue. "The other thorny issue is taxation. There is limited understanding of how the industry should be taxed and how to balance the scale of taxation."
In the upcoming year, the board aims to enhance revenue collection through a robust monitoring system and combat illegal operations both online and offline. Mbalwe described the GRAF conference as an opportunity for addressing regulatory challenges with expert insights. He welcomed participants to Tanzania, known for its hospitality and remarkable attractions, and expressed hopes for engaging discussions that lead to effective solutions.
