Tanzania will introduce a 5% excise duty on betting stakes from July 1st, as the government seeks to raise additional revenue from the country’s gambling sector.
Khamis Mussa Omar, Finance Minister (pictured), announced the measure as part of the government’s 2026/27 budget. It will apply to the value of bets across land-based and online sports betting and casino gaming, slot machine operations and virtual games.
The government expects the new duty to generate TZS74.5bn (US$28.4m) in additional revenue, with 10% of this raised tax revenue to be allocated to the Gaming Board of Tanzania to strengthen oversight of gambling activity and support efforts to address gambling-related harm.
The Minister said gambling has, in some cases, contributed to a decline in workforce participation, with some young people engaging in betting and gaming rather than productive economic activity.
The tax comes as Tanzania’s market continues to expand. H2 Gambling Capital estimated Tanzania’s gambling gross win at $463.3m in 2025 and forecasts the market could exceed $1bn by 2031, with online gambling accounting for $918.9m of this total.
The proposed duty may raise questions over whether higher taxation could push activity towards unlicensed operators. However, H2 data suggests Tanzania’s interactive black-market remains limited, accounting for just 4.5% of interactive gross win in 2025.
Tanzania is the latest African market to raise gambling taxes as governments seek to capture more revenue from expanding betting and gaming activity. Uganda introduced a 30% harmonised tax for betting and gaming earlier this year, alongside a 15% levy on net winnings. Kenya imposed a 5% charge on betting wallet withdrawals in addition to a 5% excise tax on deposits, while Lagos State in Nigeria introduced a 5% withholding tax on player winnings in February.
For Tanzania, the new duty reflects the growing fiscal importance of gambling across Africa. The policy challenge will be to increase tax revenue and strengthen consumer protection without weakening channelisation into the regulated market.
