Tanzania has introduced a bold new excise duty on gambling stakes designed to raise much-needed funds, whilst not imposing undue pressure on operators’ gaming revenue or penalising player winnings unfairly as the market booms.
Tanzania is attempting to turn its growing gambling market into a larger source of government revenue, with a new tax measure designed to benefit from the country's frenetic betting activity.
The levy comes as the country’s gaming sector continues to expand, particularly through mobile betting, while regulators face the challenge of balancing economic benefits with concerns around responsible gambling.
For operators and players alike, the new measure marks yet another significant change in Tanzania’s gambling landscape and could have wider implications as the market continues to grow at a respectable pace.
Tanzania has introduced a 5% excise duty on betting stakes as part of its 2026/27 financial strategy.
The tax applies to the value of bets placed across sports betting, casino gaming, slot machines and virtual games, and includes both land-based and online operations, with the government expecting the measure to raise TZS74.5 billion (about $28.4 million) in additional revenue.
That figure is being driven by the huge volume of betting activity in the country, with the levy targeting the stake itself rather than operator Gross Gaming Revenue (GGR) or player winnings.
The timing of the new tax is significant. Tanzania’s gambling market has been expanding rapidly amid reports that sports betting revenues had passed $72 million. The new levy is seen as an ideal opportunity to boost the country’s income.
Recent stats revealed that 99% of gambling activity in the country was taking place online through mobile phones, highlighting how quickly betting has moved into the hands of consumers, with the wider iGaming market also showing strong upward momentum.
Data cited by a prominent publication recently put Tanzania’s “gambling gross” wins at $463.3 million in 2025, with the market forecast to surpass $1 billion by 2031, and online gambling is expected to account for most of that future growth.
This new excise duty should, however, not be seen in isolation. Tanzania’s Gaming Board reported that the gambling sector generated around TZS260 billion in taxes during the 2024/25 financial year, highlighting the growing importance of the industry to government finances.
The Board has also acknowledged the sector’s contribution to employment, with more than 30,000 direct and indirect jobs linked to the gambling industry.
Under the new measure, 10% of the revenue generated by the betting duty will be allocated to the Gaming Board of Tanzania to improve regulation and supervision.
The government has also raised concerns about the social impact of the country's rapidly expanding gambling sector, including gambling addiction and increasing participation among young people and is widely expected to use a significant portion of the revenue to fund responsible gambling measures.
With Tanzania’s betting market showing no signs of slowing down, the government is keen to ensure that the industry’s growth means a valuable return for the state. The new stake tax could therefore become an important part of the country’s gambling revenue.
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