
Tanzania recorded TZS307.8 billion in gaming tax for the year ended June 2026, fueled by mobile and online growth. The regulator flagged illegal machines, weak self-exclusion and limited responsible-gaming rules in the current Act. Plans include electronic monitoring, new tools and hosting GRAF 2027 to address cross-border issues.
SCCG Take — Operators face rising compliance costs from electronic systems and potential tax recalibration. Regulators must close legislative gaps or risk sustained illegal activity offsetting reported gains.
Tanzania’s gaming sector generated TZS307.8 billion ($116.2 million) in tax revenue for the financial year ended June 2026. Gaming Board of Tanzania director general James Mbalwe linked the rise to wider smartphone access, digital-payment growth and the shift to online products, according to reporting by iGaming Business.
Mbalwe said annual tax revenue has increased year on year with sector expansion. The latest figure covers the 2025/26 fiscal year and continues prior upward momentum. A proposed 5% excise duty on betting stakes was shelved, leaving the tax structure unchanged.
Mbalwe attributed growth to mobile devices that allow sports betting and casino play without physical venues. Digital payments simplified wagering and withdrawals, drawing more participants from the country’s young, digitally familiar population.
Before 2016, brick-and-mortar casinos and slot machines supplied the largest revenue share. Online games now lead. Legal reforms have opened the sector to private investment; aside from the government-owned national lottery, operations are privately held.
More than 3,000 illegal slot machines—mostly manufactured and operated by Chinese nationals—were seized last year. Incidents have declined, yet operators adapt by moving to remote areas that are harder to police. Mbalwe called for closer work with local government authorities, which maintain nationwide presence, to speed detection.
The existing self-exclusion process is manual: particulars and photos circulate to operators, but the method has proved inadequate. The board intends to procure an electronic central database through public-private partnership for real-time monitoring of self-excluded players. Mbalwe noted the Gaming Act offers limited coverage of responsible gambling and player protection; it bars minors but lacks a detailed framework.
Unregulated online platforms pose a cross-border challenge. Licensed operators may use only platforms certified by approved testing agencies. The board collaborates with the Tanzania Communications Regulatory Authority and police cybersecurity units to block unlicensed access and works with mobile firms on payment aggregators. Its plan includes acquiring dedicated tools to prevent unregulated platforms from reaching the market.
Priorities for the next 12 months centre on electronic monitoring to improve revenue collection and action against illegal activity in both digital and land-based channels. Tanzania will host the Gaming Regulatory Africa Forum in 2027, with an agenda covering illegal online operations, platform services, gaming taxation and the need for cooperation beyond national borders.
Where the Risk Lies
Cross-border online activity and manual processes expose clear enforcement limits. Without updated legislation and shared tools, revenue gains could be undercut by persistent illegal supply and uneven player protections. Regulators and operators will need to track how the board’s planned systems and the 2027 forum translate into practical controls that match the market’s online pace.
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