Tanzania Introduces 5% Excise Duty on Betting Stakes as Part of 2026/27 Budget

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. The new financial year gets under way on 1 July.

This move forms part of a broader effort to boost government revenue while addressing social concerns tied to gambling. The budget will impose the 5% excise duty on the value of bets in gambling activities. These include land-based or online/internet sports betting, land-based or online/internet casino gaming, forty-machine slot games and virtual games operations.

Revenue Expectations and Allocation

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.

Khamis Mussa Omar also noted that gambling was in some cases leading to a decline in Tanzania’s workforce. This stems from a number of youths engaging in these activities instead of productive economic pursuits.

From my perspective after decades observing emerging markets in gaming, such targeted allocations can strengthen oversight. Yet they also place pressure on operators to adapt quickly.

Current Market Performance 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. Online is projected to account for $918.9 million of that figure.

These numbers highlight a market on a clear upward trajectory. The introduction of the 5% excise duty arrives at a moment of expansion rather than stagnation. Operators and regulators alike will watch how this revenue tool interacts with sustained growth.

Regional Context and Tax Trends Across Africa

Several other African markets have hiked taxes in recent years. Tanzania’s neighbouring country of Uganda introduced 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.

This pattern across East and West Africa signals a structural shift. Governments are turning to gambling as a fiscal resource while layering in measures aimed at curbing social costs. For client-partners evaluating entry or expansion, these moves underscore the need to model tax impacts into operational forecasts from day one.

Risks, Counterarguments and Potential Limitations

The new excise duty may raise concerns about a rise in illegal gambling. That risk cannot be dismissed in any market where tax burdens increase.

It is worth noting, however, that according to H2 Gambling Capital data, only 4.5% of Tanzania’s interactive gross win in 2025 was from the black market. This low baseline offers a measure of reassurance that the regulated sector holds dominant share.

Even so, the combination of excise on stakes plus existing concerns around youth participation and workforce participation creates layered challenges. If the tax pushes marginal players toward unregulated channels, the anticipated $28.4 million revenue gain could face erosion. Regulatory efficiency funded by the 10% allocation will need to demonstrate measurable impact on addiction and participation rates to justify the policy.

The Bottom Line

Tanzania’s 5% excise duty on betting stakes marks another inflection point in Africa’s evolving gaming taxation landscape. With gross win already at $463.3 million in 2025 and forecasts exceeding $1 billion by 2031, the country is betting on growth to absorb the new levy while directing a portion of proceeds toward better regulation. The real test will be whether this balance supports continued expansion or inadvertently feeds the very black-market and social issues it seeks to address. Operators should treat the policy as a planning input, modeling compliance costs and engagement strategies accordingly. Those who align early with the Gaming Board of Tanzania’s efficiency goals may find advantage as the market matures.