The Tanzanian government is targeting an additional $28.4 million in revenue through a new betting tax.
The Tanzania Ministry of Finance has introduced a 5% excise duty on betting stakes for the country’s 2026/27 financial year.
The announcement was made by Tanzania’s Minister of Finance Khamis Mussa Omar earlier this month, as he outlined the upcoming budget for the new financial year, which gets under way on 1 July.
The budget will impose a 5% excise duty on “the value of bets in gambling activities, including land-based or online/internet sports betting, land-based or online/internet casino gaming, forty-machine slot games and virtual games operations”.
Tanzania’s government expects the new tax to increase its revenue by TZS74.5 billion ($28.4 million).
Some 10% of the revenue generated by the tax will go to the Gaming Board of Tanzania, “to improve efficiency and regulation of gambling activities”, with the aim to reduce the consequences of gambling addiction in the country.
The minister’s announcement also noted that gambling was in some cases leading to a decline in Tanzania’s workforce, “due to a number of youths engaging in these activities instead of productive economic pursuits”.
How is gambling performing in Tanzania?
According to the latest data from H2 Gambling Capital, Tanzania generated $463.3 million in gross win from gambling in 2025.
H2 estimates gambling in Tanzania will grow to a gross win of over $1 billion by the end of 2031, with online accounting for $918.9 million of that figure.
While the new excise duty may raise concerns about a rise in illegal gambling, it is worth noting that, according to H2’s data, only 4.5% of Tanzania’s interactive gross win in 2025 was from the black market.
Several other African markets have hiked taxes in recent years, with Tanzania’s neighbouring country of Uganda introducing a 30% harmonised tax for both betting and gaming earlier this year, as well as 15% burden on net winnings.
In Kenya, regulators last year imposed a 5% charge on all betting wallet withdrawals, in addition to a 5% excise tax on deposits.
Meanwhile, Nigeria’s Lagos State introduced an immediate 5% withholding tax on player winnings in February this year.
