Tanzania’s Booming iGaming Sector Signals a New Era for East Africa’s Gambling Industry

Tanzania’s iGaming industry has experienced remarkable growth in recent months, with sports betting revenues reportedly surpassing TZS189.18 billion ($72 million).

The surge has been driven largely by a youthful customer base aged between 18 and 34, whose growing passion for sports content and widespread use of mobile devices have transformed the country’s gambling landscape. Today, an estimated 99% of gambling activity in Tanzania takes place online through mobile phones.

The expansion of digital infrastructure has played a crucial role in this transformation.

The World Bank’s $150 million Digital Tanzania project has helped accelerate broadband internet access across the country, extending connectivity into even the most remote regions. As a result, betting activity has become increasingly visible in areas such as Dodoma, Morogoro, and Ruvuma, highlighting the broad reach of the sector beyond major urban centres.

This rapid increase in participation has also influenced the operational strategies of gambling companies. Operators are now under pressure to deploy fully interoperable sportsbook platforms capable of integrating seamlessly with Tanzania’s leading mobile money services, ensuring efficient transactions and a smoother user experience.

Further underscoring the industry’s economic significance, the Gaming Board of Tanzania (GBT) recently announced that gambling activities generated an impressive TZS260 billion for the country during the 2024/25 financial year.

Implications for Tanzania’s Regulatory Landscape

The growth of Tanzania’s gambling sector has created substantial employment opportunities, with the market now supporting more than 30,000 jobs. These positions span a wide range of roles, including operator staff, shareholders, company directors, regulators, and suppliers involved in the industry’s ecosystem.

Employment figures could rise even further as the GBT pursues initiatives aimed at increasing the number of Tanzanian nationals working within the sector. At the same time, authorities have established an ambitious tax collection target of TZS24.89 billion for the 2026/27 financial year. This represents a significant increase from the TZS17.42 billion reportedly collected by April of last year, according to Taifa Daily.

At present, the GBT, working through the Tanzania Revenue Authority (TRA), imposes an 18% tax on gross gaming revenue (GGR) generated by land-based casinos. Online betting and casino operators face a higher tax rate of 25% on GGR.

While these projections point toward continued expansion in gambling participation, they also raise concerns about the potential rise of problem gambling and its associated social impacts. However, the GBT maintains that robust regulatory measures are already in place to ensure compliance across the sector while protecting the public from gambling-related harm.

A spokesperson for the GBT stated:

“The board is not leaving any stone unturned in protecting the citizenry, and we have often reiterated that gaming should be treated as entertainment rather than mainstream behaviour.

We have tried to raise the level of awareness in recent months, educating people on the effects of problem and pathological gambling, and the issues they pose to their families and the society at large.”

Payment Infrastructure and Industry Cooperation Driving Growth

Another key factor behind the industry’s rapid expansion has been the development of Tanzania’s Instant Payment System (TIPS), which has helped create a more connected and efficient financial environment for betting operators.

Introduced by the Bank of Tanzania during the 2022/23 period, TIPS processed approximately 454 million transactions in 2024 alone. Transaction volumes are expected to triple by the end of the current year, demonstrating the growing reliance on digital payment systems throughout the country.

The platform brings together major mobile money providers, including M-Pesa, TigoPesa, Airtel Money, and Halopesa. These services enable customers to transfer funds quickly and conveniently into and out of their betting accounts, supporting the continued growth of online gambling.

Industry collaboration has also strengthened in recent months. The Tanzania Gaming Association (TGA), the officially recognized body representing gaming operators in the country, recently organized a two-day training programme focused on enhancing industry standards and improving compliance with regulatory requirements.

As the East African gambling market continues to mature, Tanzania has emerged as one of the region’s most compelling success stories. Having recorded an exceptional 97% increase in growth compared with levels seen less than six years ago, the country is increasingly being viewed as a key market to watch in the evolution of Africa’s iGaming industry.

By fLEXI tEAM