During the financial year ending June 2026, Tanzania's gaming sector generated a remarkable TZS307.8 billion ($116.2 million) in tax revenue, as reported by James Mbalwe, the director general of the Gaming Board of Tanzania. This surge in revenue highlights the significant transformations occurring in the country's gambling market, driven largely by increased mobile access and the proliferation of digital payment methods.
Mbalwe explained that the growth of the sector is anchored on the easier access to online gambling, particularly sports betting and casino options, facilitated by smartphones. He noted, "The annual tax revenue from the gaming sector has been increasing year in and year out, owing to the growth of the sector." This latest tax figure pertains to the 2025/26 fiscal year, which ended in June, and aligns with earlier indicators of rising gaming tax receipts.
As mobile device usage becomes more widespread, participants in online gambling find it easier to engage without having to visit physical venues. This shift has been accompanied by simplified digital payment processes for placing bets and withdrawing winnings. Mbalwe remarked that these enhancements have attracted a growing number of players to the gaming industry: "The payment transactions (wagering and withdrawal of winnings) have been hugely simplified and made convenient."
The demographic landscape also plays a role, with Tanzania's youthful population exhibiting a strong affinity for digital entertainment. Mbalwe stated that as the sector has evolved from traditional retail gambling to online platforms, the revenue streams have changed significantly. He emphasized that prior to 2016, the majority of revenue derived from brick-and-mortar establishments, but online gaming has now taken the lead.
Legal and economic reforms have paved the way for private investment in the sector, which now caters to both domestic and international players, with the national lottery being the sole government-owned operation. Mbalwe clarified that a proposed 5% excise duty on betting stakes was ultimately not enforced: "Excise duty of 5% was shelved, so the status quo has remained the same."
Regarding illegal gambling activities, Mbalwe indicated that the Gaming Board has intensified efforts against illegal slot machines, seizing over 3,000 units last year, mainly operated by Chinese nationals. He acknowledged, "The efforts have paid a dividend as the number of reported incidents of illegal operations have significantly gone down," although illegal operators have begun relocating to more remote areas, complicating enforcement efforts.
He suggested enhancing the collaboration with local government authorities to expedite the reporting of illegal gambling operations, given their extensive reach across the country. Mbalwe stated, "Collaboration with local government authorities will hugely facilitate timely enforcement of the law and hence tame illegal machine operations in the country."
In terms of player safety, Tanzania allows a self-exclusion option, though Mbalwe pointed out the inadequacies of the current manual process. The regulator plans to implement a more efficient electronic monitoring system through a public-private partnership, which would enhance the ability to track self-excluded players.
While Tanzania's regulatory framework restricts unregulated online platforms, the challenges remain significant. Mbalwe noted, "Regulating unlicensed online gambling is particularly challenging because such operations transcend national borders, making them difficult to control fully." Alongside regulated companies, the Board collaborates with national agencies to block unregulated online platforms and identify payment providers involved in these activities.
Looking ahead, Tanzania plans to host the Gaming Regulatory Africa Forum (GRAF) conference in 2027. Mbalwe indicated that this event would serve as a platform to address issues such as illegal online operations and gaming taxation, stressing the need for collective action across national borders to tackle these challenges.
As the Board's priorities include implementing advanced electronic monitoring systems and combating illegal operations, Mbalwe expressed optimism about the upcoming GRAF conference, which aims to address practical regulatory challenges while welcoming attendees to experience Tanzania’s renowned hospitality and attractions.
