Tanzania has proposed a 5 per cent excise duty on betting stakes as part of its 2026/27 national budget. Finance Minister Khamis Mussa Omar announced the measure during his budget speech before the National Assembly in Dodoma. Once approved, the fee would apply to all forms of betting, including sports betting, gambling, slot machines, and online gaming.
The proposed fee represents a shift in Tanzania’s gambling taxation regime, focusing on the value of each wager rather than operator revenue or player wins. Authorities said the proposal is meant to raise government revenue, strengthen gambling sector control, and address concerns about gambling participation.
Tanzania’s budget announcement
Tanzania’s budget for 2026/27 includes additional measures to strengthen fiscal policy and oversight. Gambling has been identified as a revenue-generating industry, but it also requires stronger regulation.
The government has proposed a 5 per cent excise duty on the value of each bet, regardless of the outcome, across various forms of gambling. These include traditional and online sports betting, casino games, slots, and virtual gaming products. The fee makes no distinction between whether the gambler loses or wins; this differs from traditional gaming taxation, which focuses on winnings.
When new excise duty takes effect
Tanzania plans to implement a new gambling excise tax on 1 July 2026, provided parliament approves it. When it takes effect, betting operators will need to rebuild their systems, change their pricing, and improve their compliance procedures. All of this forms part of the government’s broader attempt to increase its tax revenue, which is expected to rise from 13.2 per cent to 13.7 per cent of GDP in the fiscal year. Tanzania is diversifying its tax revenue sources and strengthening its financial base by embracing the gaming industry as a new source of revenue.
Tanzania’s new tax is unique in that it focuses on the bet itself, rather than what operators earn or what players win. So, if you place a TZS10,000 (approx. $4) wager, you will be taxed immediately, whether you win or lose. This strategy captures every single transaction, providing the government with a consistent, predictable income stream. This is also Tanzania’s first direct approach to betting taxation. Operators would most likely incur greater costs, which may require them to change their odds, reduce their bonuses, or reorganise how consumers place bets while determining how to absorb the tax.
Reasons behind new levy
Tanzania is tapping into its booming gambling industry with a new betting tax that is designed to do more than just fill government coffers. The country expects the tax to bring in roughly TZS74.5 billion ($29 million) annually, money that will go towards things people actually need: building better roads and schools, improving healthcare, and boosting digital infrastructure. It’s a practical approach to funding national development. With spending demands on the rise, authorities see regulated gambling as a straightforward way to make sure the industry contributes its fair share while strengthening the country’s finances.
At the same time, policymakers have expressed concern about gambling addiction, especially among young people. Excessive participation has been linked to decreased productivity and lower worker engagement. The Ministry of Finance has warned that some people waste too much time and money on gaming instead of pursuing more useful activities. The proposal intends to deter excessive gambling by increasing the cost of betting while keeping the sector lawful.
Impact on operators
Tanzania’s planned excise duty will have a direct impact on gambling operators, particularly online sports betting companies, which are one of the main segments of the market. The fact that the tax will be levied on all bets placed would encourage operators to examine pricing strategies and other aspects of business development. Compliance software, taxation systems, and operational efficiency are expected to receive increased attention from operators, and foreign operators wishing to enter the market should also take this into account.
The tax will also affect players, though to varying degrees depending on how the operators respond. In economic terms, when costs are higher, participation is reduced; however, the influence on betting patterns will vary. Casual players may reduce their gambling, while dedicated gamblers may see little effect. It will all come down to how the market evolves over time.
Tanzania’s growing gambling market
Tanzania’s gambling industry is expanding rapidly, and the proposed betting tax coincides with this growth. According to gambling industry forecasts, betting revenue in 2025 will be around $463.3 million in gross winnings from betting businesses, indicating an increase in customer demand and participation. The sector has also made a significant contribution to employment, providing more than 30,000 direct and indirect jobs. At the same time, tax contributions reported by Tanzania’s Gaming Board highlight the organisation’s growing importance to public finances.
Going forward, forecasts predict that the market will earn $1 billion in gross income by 2031, owing primarily to internet-based platforms. There will be consistent growth in 2026, internet growth in 2027, and increased digitization in the late 2020s. By 2030, the sector is predicted to be worth billions of dollars, with online gambling accounting for the majority of the revenue.
Tanzania’s new betting tax follows a broader regional trend of African governments tightening gambling regulations. Uganda has recently implemented a 30 per cent harmonised tax on betting and gaming, as well as a 15 per cent tax on net winnings.
Kenya and Nigeria have taken different approaches. Kenya applies a 5 per cent charge on betting wallet withdrawals, in addition to existing deposit taxes, while Lagos State, Nigeria, has imposed a 5 per cent withholding tax on player winnings.
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