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Tanzania is set to introduce a new 5% excise duty on betting stakes as part of its 2026/27 national budget, in a move designed to increase government revenue and strengthen oversight of the country’s fast-growing gambling sector.

The proposed tax will apply to the value of every bet placed across multiple verticals, including sports betting, online casinos, land-based casinos, slot games, and virtual gaming. Unlike traditional gambling taxes that focus on operator gross gaming revenue or player winnings, the new levy will be charged directly on every wager.

Government Expects TZS74.5 Billion in Additional Revenue

According to Finance Minister Khamis Mussa Omar, the measure is expected to generate around TZS74.5 billion (approximately $29 million) in extra annual tax revenue. A portion of that money — around 10% — will be allocated to the Gaming Board of Tanzania to improve regulatory efficiency and strengthen market supervision.

The tax proposal forms part of Tanzania’s broader fiscal strategy for the upcoming financial year, with the government aiming to increase tax collection as a share of GDP from 13.2% to 13.7%.

Beyond revenue generation, the government says the new tax is also intended to address rising concerns over gambling addiction, particularly among younger players.

Officials have argued that excessive gambling participation is contributing to lower productivity and diverting some young people away from economic activity. By making betting more expensive, policymakers hope to reduce harmful gambling behavior while maintaining legal market oversight.

Operators May Face Higher Costs and Pricing Changes

For operators, the new stake-based tax could significantly change business economics, as it applies regardless of whether bets win or lose.

Industry experts say this may lead sportsbooks and casino operators to adjust odds, reduce bonuses, or pass some of the cost onto customers. The tax would add another layer to Tanzania’s existing gambling tax framework, which already includes GGR and player winnings taxes across several verticals.

The measure still requires parliamentary approval before taking effect, but if passed, it is expected to launch from July 1, 2026.

Source: https://www.igamingtoday.com/tanzania-plans-5-betting-stake-tax-to-raise-tzs74-5bn-in-additional-revenue/