Tanzania gaming tax hits TZS307.8 billion as mobile payments push gambling online

Tanzania’s gaming sector generated TZS307.8 billion ($116.2 million) in tax revenue in the financial year ended June 2026, according to Gaming Board of Tanzania director general James Mbalwe. The number matters for PSPs and acquiring teams because the growth story is now tied to mobile access, digital payments and a shift from land-based play to online betting and casino.

1. Mbalwe said the annual tax take has been “increasing year in and year out” as the sector expanded. The latest figure covers the 2025/26 financial year, which ended in June, and he said the board’s earlier public reporting had already pointed to upward momentum in gaming tax receipts.
2. The growth is being driven by smartphone penetration and digital payments. Mbalwe said widespread mobile use has made online gambling, especially sports betting and casino, easier to access without visiting a physical venue, while payment transactions for wagering and withdrawals have been “hugely simplified and made convenient.”
3. He also linked the market shift to Tanzania’s young population and its familiarity with digital entertainment. Before 2016, Mbalwe said, most revenue came from “mortar and brick casino” operations, followed by slot machines; now, “revenue from online-based games is on top.”
4. For payment providers, the practical takeaway is that online rails have become part of the core gambling workflow in Tanzania, not a side channel. Mbalwe said the sector is legally recognised and open to private investment, with the exception of the national lottery, which remains government-owned but privately run.
5. He also said a proposed 5% excise duty on betting stakes was not implemented. “Excise duty of 5% was shelved, so the status quo has remained the same,” he said.

Mbalwe said the expansion has also brought familiar control problems: illegal slot machine activity, unregulated online platforms and inadequate player-protection systems. For PSPs, that combination usually means more volume, but also more scrutiny on onboarding, merchant monitoring and what kind of gaming traffic is being processed.