Tanzania's gaming sector reported tax revenue of TZS307.8 billion ($116.2 million) for the financial year that concluded in June 2026, a significant increase driven by the proliferation of mobile access and digital payment options, according to James Mbalwe, the director general of the Gaming Board of Tanzania.Mbalwe attributed this upward trend in tax revenue to broader smartphone adoption, growth in digital payments, and a move toward online gaming products.
However, he also highlighted several challenges that have arisen alongside this expansion, such as the rise of illegal slot machines, unregulated online gambling platforms, and insufficient player protection measures.
“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, pinpointing that the current figures reflect the 2025/26 fiscal year. Previous reports indicated a continuous increase in gaming tax receipts, and Mbalwe’s remarks reinforce this observation.
The surge in revenue can be largely attributed to increasing mobile phone accessibility. According to Mbalwe, the widespread use of mobile devices has facilitated online gambling, particularly in areas like sports betting and casinos, reducing the need to visit physical locations. Digital payments have likewise simplified the processes of placing bets and withdrawing winnings.
“The payment transactions (wagering and withdrawal of winnings) have been hugely simplified and made convenient,” he explained, stating that this ease has encouraged more individuals to participate in gaming.
Additionally, Mbalwe noted that Tanzania's young, tech-savvy population has contributed to the shift from traditional retail gambling to online offerings. "The online games have accelerated revenue performance of the sector. Before 2016, the biggest chunk of revenue came from brick-and-mortar casinos followed by slot machine operations; this is changing as online games become increasingly popular," he said.
Legal and economic reforms have further opened the door for private investment in the gaming sector, which Mbalwe stated is largely comprised of privately owned operations, with the exception of the government-run national lottery.
He also mentioned that a proposed 5% excise duty on betting stakes ultimately did not materialize. "Excise duty of 5% was shelved, so the status quo has remained the same," he clarified.
On the land-based gambling front, Mbalwe indicated that the board has intensified efforts against illegal slot machines, having seized over 3,000 units in the previous financial year. "Most of these machines were manufactured and operated by Chinese nationals,” he said, noting that the success of these efforts has led to a significant decrease in reported illegal operations.
He pointed out that illegal operators have adapted by relocating to remote areas that are tougher to police.
“Criminals keep switching their tactics and modus operandi by targeting areas which are remote and hard to be policed by the board,” he observed, suggesting that local government authorities play a critical role in identifying and reporting illegal gambling operations due to their locality.
“Unlike the board, the local government authority has a presence in all corners of the country, making it easier to detect and report illegal machine operations conducted in their respective areas,” Mbalwe said.
The current self-exclusion system allows players to request that their information be circulated among gaming establishments to prevent them from gambling. However, Mbalwe criticized the existing manual process as inadequate.
“There is limited coverage on responsible gaming and player protection within our current legislation,” he remarked. While minors are barred from gaming activities, he noted that more comprehensive protections are lacking.
He detailed plans to implement an electronic monitoring system via a central database to help identify and restrict access for self-excluded players, which would be developed through a public-private partnership.
Addressing unregulated online gambling remains a challenge, as Mbalwe acknowledged that unscrupulous operators exploit loopholes that transcend national borders. He stated that licensed businesses are only allowed to use platforms certified by authorized global testing agencies. The Gaming Board collaborates with the Tanzania Communications Regulatory Authority and the Police Cybersecurity Bureau to investigate and block unregulated platforms while also working with mobile providers to identify illegal gaming payment facilitators.
“The plan ahead is for the board to have its own tools to prevent or eliminate unregulated platforms from accessing the gaming market,” he added.
As Tanzania prepares to host the Gaming Regulatory Africa Forum (GRAF) conference in 2027, Mbalwe sees this as a prime opportunity to showcase the country's gaming industry. He noted that discussions will focus on issues such as illegal online operations, taxation, and the role of online platform services in the ecosystem.
Mbalwe concluded by highlighting the need for collaborative regulatory approaches to combat illegal operations, emphasizing the importance of addressing practical challenges during the upcoming conference. He expressed optimism about the event’s potential, remarking, “Tanzania looks forward to welcoming delegates to the beautiful country, renowned for its warm hospitality, rich culture and natural attractions, including Zanzibar, the Serengeti and Mount Kilimanjaro.”
