Tanzania's gaming sector saw a significant tax revenue increase, reaching TZS307.8 billion ($116.2 million) for the financial year ending June 2026. According to James Mbalwe, the director general of the Gaming Board of Tanzania, this growth is attributed to enhanced mobile access and the rise of digital payments, reshaping the gambling landscape in the country.
Mbalwe highlighted that the increasing availability of smartphones and digital payment options has facilitated the shift towards online gaming, particularly in sports betting and casino games. He underscored the challenges that have emerged, including illegal slot machine operations, unregulated online platforms, and insufficient player protection systems.
"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, confirming the latest figures reflect the fiscal year 2025/26. He noted that the Gaming Board's previous reports already indicated a positive trend in tax revenue, which appears to have continued into the recent year.
Mobile access has played a pivotal role in this growth, according to Mbalwe, who explains that mobile devices have made accessing online gambling significantly easier. "The payment transactions (wagering and withdrawal of winnings) have been hugely simplified and made convenient, thus attracting more punters to participate in gaming," he remarked. This growth is also linked to Tanzania’s youthful population, which is well-versed in digital entertainment, leading to a fundamental shift in revenue sources from traditional retail gambling to online operations.
Mbalwe noted that before 2016, physical casinos and slot machines were predominant revenue sources, but that has changed as online gaming revenues have surged. He added that legal and economic reforms have opened the doors to private investment in the sector, indicating that apart from the national lottery, which is government-owned but privately managed, gaming operations are largely privately owned and open to both local and international investors.
He clarified that a proposed 5% excise duty on betting stakes was not put into effect, stating, "Excise duty of 5% was shelved, so the status quo has remained the same."
Discussing illegal gaming operations, Mbalwe mentioned the board's ongoing efforts to combat illegal slot machines, with over 3,000 machines seized in the last financial year, many traced back to operations by Chinese nationals. He expressed satisfaction with the results of these efforts, noting a decrease in reported illegal activities, though he acknowledged that offenders are adapting by shifting their operations to remote areas where enforcement is more challenging.
Mbalwe suggested that local government authorities could play a crucial role in identifying and reporting illegal gaming machines, emphasizing the need for collaboration between the Gaming Board and local governments to enhance enforcement.
In terms of player protection, Tanzania currently provides a self-exclusion option, allowing individuals to request that their information be shared with gaming operators to restrict their access. However, Mbalwe criticized the existing manual process as inadequate, stating plans for a more effective electronic system that would monitor self-excluded players through a central database managed via public-private partnerships.
He called for greater legislative coverage concerning responsible gambling and player protection, noting that the current Gaming Act provides limited frameworks in these areas. While the law prohibits minors from participating in gaming, it lacks comprehensive measures for overall player protection.
Mbalwe acknowledged that the Gaming Board's regulatory framework effectively limits unregulated online platforms but noted ongoing exploitation by malicious actors. He indicated that unlicensed online gambling poses unique regulatory challenges as these entities operate beyond national boundaries. Licensed businesses are required to use platforms certified by recognized global testing agencies, and the board collaborates with the Tanzania Communications Regulatory Authority and the Police Cybersecurity Bureau to block unregulated sites.
Looking ahead, Mbalwe affirmed the board’s commitment to strengthening the regulatory environment, aiming for effective strategies to remove unregulated online platforms from accessing Tanzania's gaming market. He also emphasized the importance of the upcoming Gaming Regulatory Africa Forum (GRAF) conference in 2027, which aims to address issues such as illegal online operations, gaming taxation, and the challenges faced by the industry.
Mbalwe expressed optimism about the GRAF conference, hoping it would facilitate discussions around practical regulatory challenges and solutions while showcasing Tanzania’s vibrant gaming sector, known for its warm hospitality and breathtaking natural attractions, including Zanzibar, the Serengeti, and Mount Kilimanjaro.
