During the financial year that concluded in June 2026, Tanzania’s gaming industry generated TZS307.8 billion ($116.2 million) in tax revenue. James Mbalwe, the director general of the Gaming Board of Tanzania, attributes this growth to increased mobile access and the rise of digital payments, which are reshaping the nation's gambling landscape.
Mbalwe explained that the expansion is linked to greater smartphone penetration and a growing preference for online gambling products, particularly through sports betting and casinos.
He highlighted challenges emerging from this growth, including illegal slot machine operations, unregulated online platforms, and insufficient player protection mechanisms.
Mbalwe noted that revenue from gaming has shown consistent annual increases, a trend that continued into the most recent fiscal year. He stated, "The annual tax revenue from the gaming sector has been increasing year in and year out, owing to the growth of the sector."
The revenue surge is largely attributed to mobile phones' widespread adoption, which facilitates easier online gambling without the need for physical venues. Additionally, digital payment methods have simplified transactions for placing bets and withdrawing winnings. Mbalwe remarked, "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."
The younger demographic in Tanzania, familiar with digital entertainment, has also contributed to the growth of online gaming. Mbalwe observed a shift from traditional retail gambling, previously leading revenue generation, to a greater emphasis on online gaming.
Legal reforms have opened doors to private investments in the gaming sector, allowing both domestic and foreign entities to operate, except for the national lottery, which is government-owned but privately managed. Mbalwe clarified that the proposed excise duty of 5% on betting stakes was never implemented: "Excise duty of 5% was shelved, so the status quo has remained the same."
On the ground, efforts to combat illegal slot machines have intensified, with over 3,000 machines reported seized last year, many operated by foreign nationals. Mbalwe noted, "The efforts have paid a dividend as the number of reported incidents of illegal operations have significantly gone down," while acknowledging that illegal operators are increasingly moving to more remote areas to evade detection. Mbalwe suggested collaboration with local government authorities to enhance enforcement, stating, "Unlike the board, the local government authority has full presence in all corners of the country."
In terms of player protection, Tanzania has allowed individuals to self-exclude from gaming establishments, but Mbalwe criticized the manual process as inadequate. He announced plans for an electronic central database that would provide real-time monitoring of self-excluded players, to be developed through a public-private partnership: "This will entail setting up an electronic central database to monitor self-excluded players. It will be easy to detect and stop victims from re-engaging in gaming."
Despite regulatory efforts, unregulated online gambling remains a significant challenge due to its cross-border nature. Mbalwe explained that licensed businesses are restricted to platforms certified by recognized global testing agencies, as the board collaborates with the Tanzania Communications Regulatory Authority and the Police Cybersecurity Bureau to address these issues.
Looking forward, Tanzania will host the Gaming Regulatory Africa Forum (GRAF) in 2027, where Mbalwe aims to highlight industry issues such as illegal online operations, taxation, and the regulatory landscape of online services. He emphasized the importance of a collaborative approach to tackling these challenges, urging for discussions that cross geographic boundaries.
In summary, Mbalwe outlined the board's priorities for the upcoming year, which include enhancing electronic monitoring systems and continuing the fight against illegal operations in both digital and land-based sectors. Additionally, he expressed excitement for hosting GRAF, welcoming delegates to experience Tanzania's rich culture and hospitality, noting the past successes of similar conferences as pivotal for practical regulatory discussions.
