Illegal betting machines raise risk as gaming targets Sh300 billion

Dar es Salaam. Tanzania’s gaming industry is targeting more than Sh300 billion in government revenue this financial year, as regulators step up efforts to curb illegal gaming and promote responsible betting.

Gaming Board of Tanzania (GBT) Director General James Mbalwe said the regulator seized more than 3,000 illegal gaming machines last year, removing operators from outside the regulated system.

He said illegal machines deny the government revenue from licensing and gaming taxes, although the actual loss depends on how long the machines operated and the revenue they generated.

At an estimated tax obligation of about Sh120,000 per machine, the seized machines represented potential revenue of hundreds of millions of shillings.

Mr Mbalwe said the regulator was also preparing research to establish revenue losses associated with illegal online gambling as betting increasingly moves to digital platforms.

“We will conduct research on online gambling to see how much it reduces the revenue of our sector in the country,” he said.

The gaming industry generated about Sh280 billion in gaming tax last year, with collections expected to exceed Sh300 billion in 2026/27 if current performance continues, Mr Mbalwe said.

When licence fees, levies, Pay As You Earn, Skills Development Levy and taxes on imported gaming equipment are included, the sector’s total contribution could reach about Sh350 billion.

Gaming tax revenue rose from Sh131.9 billion in 2020/21 to Sh260 billion in 2024/25, according to previous GBT data.

The sector also supports between 28,000 and 30,000 direct and indirect jobs, according to Mr Mbalwe.

However, rising revenue has increased the focus on consumer protection.

Tanzania Sports Betting Association executive chairperson Sabrina Msuya said player education should be strengthened to help bettors understand the risks associated with excessive gambling.

“Education is very important for players because many users still need education,” she said during Africa Safer Gambling Week.

The increased use of mobile phones and online platforms has made betting more accessible while presenting new regulatory challenges.

The GBT said in July that it had introduced measures to temporarily restrict compulsive gamblers from betting and was expanding public awareness campaigns, particularly among young people.

The government also proposed a five percent excise duty on betting stakes in the 2026/27 Budget, projected to raise Sh74.5 billion annually, but later withdrew the measure following consultations on the Finance Bill.