Tanzania's gaming sector generated a remarkable TZS307.8 billion ($116.2 million) in tax revenue for the financial year ending June 2026, as reported by James Mbalwe, the director general of the Gaming Board of Tanzania. The surge in revenue is largely attributed to increased mobile phone access and the growth of digital payment systems, which are transforming the country's gambling market.
Mbalwe stated that the expansion of the sector is closely linked to the rise of smartphones, making online gambling—especially sports betting and casino gaming—more accessible without the need to visit physical venues. Additionally, he pointed out that the simplification of payment transactions for wagering and withdrawals has attracted more participants.
"The payment transactions (wagering and withdrawal of winnings) have been hugely simplified and made convenient," Mbalwe explained. India’s youthful population and their familiarity with digital platforms have further driven the sector's growth. He noted a significant shift in revenue sources; prior to 2016, most income came from traditional casinos and slot machines. Now, online gaming constitutes a larger portion of revenue.
Legal and economic reforms have fostered a healthy environment for private investment in the gaming sector. While the national lottery remains under government control, other gaming operations now allow domestic and foreign investors.
Mbalwe clarified that plans to introduce a 5% excise duty on betting stakes were ultimately shelved. "Excise duty of 5% was shelved, so the status quo has remained the same," he said.
Alongside revenue growth, the Gaming Board has been actively addressing illegal gaming operations. Last year alone, over 3,000 unlawful slot machines were confiscated, predominantly operated by Chinese nationals. "The efforts have paid a dividend as the number of reported incidents of illegal operations has significantly gone down," Mbalwe added, though he noted that illegal operations have shifted to more remote areas to evade detection.
Mbalwe suggested that local government authorities could enhance enforcement efforts by identifying and reporting illegal machines quickly due to their geographical coverage. He emphasized that collaboration with these authorities could significantly facilitate law enforcement in combating illegal operations.
In terms of player protection, Tanzania currently offers a self-exclusion program, although Mbalwe mentioned that the process is outdated and inadequate. He described the existing system as manual, using physical photos and details of self-excluded individuals. Plans are underway to modernize this process through a central electronic database, which will be developed via a public-private partnership, enhancing real-time monitoring and enforcement.
Mbalwe expressed concerns regarding the current Gaming Act, which he believes needs to strengthen its provisions on responsible gaming and player protection. Currently, the law only prohibits minors from gambling without a comprehensive safety framework.
The Gaming Board has faced challenges with unregulated online platforms, which exploit loopholes in the regulatory framework. Although the board cooperates with the Tanzania Communications Regulatory Authority and the Police Cybersecurity Bureau to tackle unlicensed online gambling, the borderless nature of these operations complicates enforcement.
Moving ahead, the Gaming Board aims to strengthen its regulatory capabilities, including developing tools to counter unlicensed platforms from accessing Tanzania's gaming market.
Looking towards the future, Tanzania will host the Gaming Regulatory Africa Forum (GRAF) in 2027. Mbalwe highlighted that this event would allow the board to showcase the gaming industry's footprint and address current challenges, such as illegal online operations and taxation issues, which remain complex and under-discussed among regulators.
In the coming year, the Board's priorities include enhancing revenue collection through electronic monitoring systems and combating illegal operations in both online and offline spheres. "The board’s priorities for the coming 12 months include enhancing revenue collection by deploying a robust electronic monitoring system," Mbalwe remarked. He expressed optimism for the GRAF conference, hoping it would facilitate networking and problem-solving among delegates, reflecting Tanzania's renowned hospitality and natural beauty.
