Tanzania, officially known as the United Republic of Tanzania, is a country in East Africa with a population of more than 50 million people, 80% of whom reside in rural areas. Gambling is a regulated industry in Tanzania, and it is legal. While it is not the first country on the continent to legalize gambling, it is among the first to do so.
Gambling was first legalized in Tanzania with the enactment of the Investment Promotion and Protection Act in 1992 and the Tanzania Investment Act in 1997. This was only the beginning, as the Tanzanian government decided to strengthen the regulations and passed the Gaming Act of Tanzania in 2003.
Like many other African countries, Tanzania has relatively low internet penetration. Despite that, online gambling is steadily developing, with more Tanzanians using mobile devices to access the internet and play online. Online gambling is also regulated and legal in Tanzania.
Over the years, as gambling evolved, Tanzania adopted several laws that continue to regulate land-based and online gambling in the country. Regarding the implementation of gambling regulations, the authority that governs all gambling activities in Tanzania is the Gaming Board.
Gambling Regulations in Tanzania
The legal framework for gambling in Tanzania dates back to 1992 and 1997, when the government enacted the Investment Promotion and Protection Act and the Tanzania Investment Act, respectively. These acts aimed to encourage investment in leisure and tourism, including the gambling sector.
Recognizing the need for further regulation, Tanzania ratified the Gaming Act in 2003. This act remains the primary law governing gambling in the country, and the government has introduced several amendments over the years to refine its provisions.
Under the Gaming Act, “gaming activities” are defined as games played with cards or dice, or those that involve any mechanical, electromechanical, or electronic device, in which the games are played for money, property, credit, checks, credit cards, or anything of monetary value. Card games held in private residences where no one profits from organizing them are not considered regulated “gaming activities.”
The Gaming Act also established the Gaming Board of Tanzania (GBT), the body responsible for overseeing the gambling industry and issuing gaming licenses. Operating any form of gambling without a license is illegal and can result in a fine of up to TZS500,000, imprisonment for up to 12 months, or both. The same penalties apply to operators who conduct gambling on unlicensed premises.
Land-based Gaming Facilities in Tanzania
Lottery and Sports Betting in TanzaniaOnline Gambling in Tanzania
Like many of its neighboring countries, Tanzania has limited internet penetration. That said, in 2021 the country boasted an internet penetration rate of 50%, ranking well above many other African countries. As more people gain access to mobile devices, playing online has become much easier.
Online gambling is also regulated by the Gambling Act 2003, and it is legal in Tanzania to place wagers at online casinos and sportsbooks. While there is no specific section addressing online gambling, Tanzanian lawmakers consider that the broad term “gaming activities” also includes the online form of gaming and betting.
Because the same rules and regulations apply to land-based and online gambling in Tanzania, operators that wish to run online casinos or sportsbooks must obtain a license from the GBT. Unlike many other African countries, Tanzania legalized online gambling long ago, with the first online casino launching in 2013. Many other gaming websites soon followed, catering to Tanzanian players. Because the sector is regulated, online players can be confident that they are protected, as licensed operators must comply with the requirements of the Gaming Act 2003 and the GBT.
GBT Gambling Licenses
With the enactment of the Gaming Act 2003, the Gaming Board was also established as the body responsible for governing all gambling activities in Tanzania. The GBT is also the authority that issues licenses to operators that wish to offer gaming or betting services. The GBT can issue 18 different types of licenses. Some of the licenses operators can apply for in Tanzania include a casino license for table games and slot machines, a license for the supply, service, and sale of gaming equipment, an internet casino license, an internet sports betting license, and more.
Under Section 26 of the Gaming Act, license applicants must meet several criteria to qualify for GBT approval. Operators must never have had a license denied, suspended, or revoked. In addition, they must also never have withdrawn a license application in Tanzania or another country.
Applicants, including the company’s directors and shareholders, must have a clean criminal record to apply for a license from the GBT. Other requirements include providing proof of adequate funding and owning gaming premises approved by the GBT.
Once applicants provide the required documents, the GBT will assess whether they are suitable to receive a gaming license. Depending on the type of license, the GBT may impose some restrictions and conditions on the license.
Under section 31 of the Gaming Act, license holders are required to pay gaming taxes to the Tanzania Revenue Authority. The monthly gaming levy and applicable tax rates are determined by the Gaming Amendment Regulations GN 401 of 2010.
Gaming Tax in Tanzania
Gaming tax in Tanzania is levied on six different types of legal gaming activities. The tax applies to casinos, sports betting, SMS lotteries, the national lottery, slot (route) operations, and forty machines.
The filing of returns and the way the gaming tax is collected depend on the type of license the operator holds. Under an amendment to the Finance Act of 2013, land-based and online casinos must file returns weekly. All other gaming activities file returns monthly.
| Gaming Activity | Weekly/Monthly Returns | Tax Rate | Tax Base |
|---|---|---|---|
| Land-Based Casinos | Weekly | 18% | Gross Gaming Revenue |
| 12% | Net Winnings | ||
| Online Casinos | Weekly | 25% | Gross Gaming Revenue |
| 15% | Net Winnings | ||
| Sports Betting | Monthly | 25% | Gross Gaming Revenue |
| 15% | Net Winnings | ||
| SMS Lottery | Monthly | 25% | Gross Gaming Revenue |
| 15% | Net Winnings | ||
| National Lottery | Monthly | 20% | Gross Gaming Revenue |
| 15% | Net Winnings | ||
| Virtual Games | Monthly | 10% | Gross Gaming Revenue |
| 15% | Net Winnings | ||
| Slots/Route Operations | Monthly | 15% | Gross Gaming Revenue |
| TZS100,000 | Per slot/machine | ||
| Forty Machine Site | Monthly | 25% | Gross Gaming Revenue |
Closing Thoughts
Tanzania is often considered a pioneer in gambling legalization, as it was one of the first countries in Africa to legalize both land-based and online gambling. The main piece of legislation that regulates all gambling activities in Tanzania is the Gaming Act, which was enacted in 2003.
Similar to other African countries, Tanzania has a relatively low internet penetration rate, but it is still significantly higher than in most other countries on the continent. With increasing internet access in Tanzania, online gambling is becoming more popular and relevant. Unlike many countries in Africa, Tanzania has legalized both land-based and online gambling.
Whether running a land-based or online casino, a sports betting facility, an SMS lottery, or another gaming activity, operators must obtain a license from the GBT to legally offer services permitted under the Gaming Act 2003. With the current regulations in place, the gambling industry is expected to keep growing in the coming years, driven by rising internet penetration and the increasing number of online casinos available to Tanzanian players.