The Tanzanian Ministry of Finance has announced a 5% excise duty on betting stakes, effective for the 2026/27 financial year starting July 1. Minister Khamis Mussa Omar revealed the measure during the budget presentation this month.
The new levy applies to the value of bets across all gambling activities. This includes land-based and online sports betting, casino gaming, forty-machine slot games, and virtual game operations. The government projects the tax will generate TZS 74.5 billion, equivalent to $28.4 million, in additional revenue.
Revenue Allocation and Social Impact
Ten percent of the funds collected will be directed to the Gaming Board of Tanzania. These resources are designated to improve regulatory efficiency and address gambling addiction. Minister Omar highlighted that excessive gambling participation among youth is reducing the available workforce for productive economic sectors.
Market Performance and Regional Context
Market data shows the Tanzanian gambling sector generated $463.3 million in gross win during 2025. Forecasts suggest the industry will exceed $1 billion in gross win by 2031, with online channels accounting for $918.9 million of that total. The black market share remained low, representing only 4.5% of interactive gross win in 2025.
Other African nations have recently adjusted their taxation frameworks. Uganda implemented a 30% harmonised tax on betting and gaming alongside a 15% levy on net winnings earlier this year. Kenya regulators introduced a 5% charge on betting wallet withdrawals and a 5% excise tax on deposits last year.
Additionally, Lagos State in Nigeria applied a 5% withholding tax on player winnings in February.