Tanzania to Implement 5% Excise Duty on Betting Stakes, Targeting $28.4 Million in New Revenue

The Tanzanian government is preparing to introduce a 5% excise duty on all betting stakes, a move projected to generate an additional TZS74.5 billion, equivalent to approximately $28.4 million, in state revenue. This new levy is scheduled to take effect from the country's 2026/27 financial year, commencing on July 1.

Finance Minister Khamis Mussa Omar announced the forthcoming tax earlier this month as part of the nation's budget outline. The excise duty will apply broadly across various gambling activities, encompassing both land-based and online/internet sports betting, land-based and online/internet casino gaming, as well as 40-machine slot games and virtual gaming operations. A portion of the proceeds, specifically 10% of the new tax revenue, will be allocated to the Gaming Board of Tanzania. This funding is intended to bolster the board's operational efficiency, enhance its regulatory oversight of gambling activities, and contribute to efforts aimed at mitigating the social impacts of gambling addiction across the country. Minister Omar noted that the government views gambling as a factor potentially leading to a decline in the national workforce, citing instances where young people prioritize these activities over productive economic pursuits.

Despite potential concerns regarding the impact of new taxes on the market, data from H2 Gambling Capital indicates a robust and growing gambling sector in Tanzania. In 2025, the market generated a gross win of $463.3 million. Projections suggest significant expansion, with the total gross win expected to surpass $1 billion by the close of 2031, with online channels estimated to contribute a substantial $918.9 million to that figure. Furthermore, H2's analysis for 2025 indicated that only 4.5% of Tanzania's interactive gross win originated from the black market, suggesting that illegal gambling currently represents a relatively minor segment.

Tanzania's decision aligns with a broader trend of increased taxation in the iGaming sector across various African jurisdictions. Neighboring Uganda, for instance, introduced a harmonized 30% tax on both betting and gaming earlier this year, alongside a 15% levy on net winnings. Last year, Kenya's regulators implemented a 5% charge on all betting wallet withdrawals in addition to a 5% excise tax on deposits. Similarly, Lagos State in Nigeria began applying a 5% withholding tax on player winnings in February.