Tanzania's gaming industry recorded TZS307.8 billion ($116.2 million) in tax revenue for the financial year ending June 2026, according to the director general of the Gaming Board of Tanzania, James Mbalwe. This significant growth comes as mobile access and digital payments have begun to transform the gambling landscape in the country.
Mbalwe explained that increased smartphone usage, a rise in digital payments, and an overall shift towards online gaming products have been crucial to the industry's expansion. However, he also pointed out that this growth has brought challenges, notably the prevalence of illegal slot machine operations, unregulated online platforms, and insufficient player protection systems.
Reflecting on the rising tax revenues, Mbalwe stated, "The annual tax revenue from the gaming sector has been increasing year in and year out, owing to the growth of the sector." He confirmed that the figures pertain to the 2025/26 financial year, indicating a continuous upward trend in gaming tax receipts.
Mbalwe attributed the significant revenue increase to the accessibility of online gambling via mobile phones. He noted that mobile devices have made it easier for consumers to engage in activities like sports betting and casino games without the need to visit physical locations. Simplified digital payment processes for wagering and withdrawing winnings have further encouraged participation. "The payment transactions have been hugely simplified and made convenient, which has attracted more punters to participate in gaming," he said.
The growth of the market is also linked to the demographic trends in Tanzania. A younger population familiar with digital entertainment is shifting revenue sources from traditional retail gambling to online products. In prior years, brick-and-mortar casinos and slot machines dominated the revenue streams, but now revenue from online games leads the sector.
Mbalwe emphasized that legal and economic reforms have welcomed private investment into the gaming sector. Apart from the national lottery, which remains state-owned but privately managed, the gaming operations are predominantly privately owned, allowing both local and foreign investments. "The sector is legally recognized and there is an established entity to regulate the sector," he stated.
He clarified that a proposed 5% excise duty on betting stakes was not implemented. "Excise duty of 5% was shelved, so the status quo has remained the same," Mbalwe explained.
On the ground, the Gaming Board is actively working to combat illegal slot machines. In the last financial year, over 3,000 illegal gaming machines, mainly owned by Chinese nationals, were seized. Mbalwe noted, "The efforts have paid a dividend as the number of reported incidents of illegal operations have significantly gone down." However, he cautioned that illegal operators are adapting by relocating to more remote areas where enforcement is weaker.
Local government authorities play a vital role in identifying and reporting illegal machinery more swiftly, due to their presence throughout the nation. "Collaboration with local government authorities will hugely facilitate timely enforcement of the law and hence tame illegal machine operations in the country," he added.
In terms of player protection, Tanzania provides a self-exclusion option allowing individuals to request that their details be circulated to gambling entities. However, Mbalwe criticized the current manual process as inadequate. He proposed introducing an electronic, real-time monitoring system through a central database, which would be developed via a public-private partnership. This system aims to improve the tracking of self-excluded players and prevent them from re-engaging in gambling activities.
Highlighting the limitations of current legislation, Mbalwe noted that the Gaming Act lacks comprehensive provisions for responsible gambling and player protection. The law does prohibit minors from participating in gaming, but more robust protections are needed.
While the board's existing regulatory framework restricts unregulated online platforms from entering Tanzania's gaming market, Mbalwe acknowledged that illegal operators continue to exploit these loopholes. "Regulating unlicensed online gambling is particularly challenging because such operations transcend national borders," he stated. The board collaborates with the Tanzania Communications Regulatory Authority and the Police Cybersecurity Bureau to investigate unregulated platforms and block them, while working with mobile companies to track gaming-payment aggregators.
Looking ahead to the Gaming Regulatory Africa Forum (GRAF) set for 2027 in Tanzania, Mbalwe expressed that it would be an ideal venue for highlighting the gaming industry's developments. The agenda will focus on pressing issues including illegal online operations, online platform services, and taxation within the industry. "Online illegal operations are increasingly becoming a regulatory staple challenge. While this is a cross-border crime, it has been noted that most regulators tackle this problem in silos," he noted.
Over the next year, the Gaming Board's priorities include the implementation of electronic monitoring to bolster revenue collection and intensifying efforts against illegal operations, whether online or offline. Mbalwe stressed the importance of the upcoming GRAF conference in tackling practical regulatory challenges through expert discussions and networking opportunities. "We will try to procure resource persons with in-depth understanding on each subject which will be conversed on during the conference," he concluded.
