Tanzania's gambling industry is undergoing a profound transformation driven by technology, with digital platforms rapidly emerging and now accounting for over 70% of the national gambling market share. According to the Citizen Report, online betting has become the mainstream method in 2023, with more than half of the approximately 39.5 million bettors in the country completing transactions via mobile phones.
30-year-old user Eliud Massawe stated, "Now there is no need to go to a physical betting station; you can easily place bets in your bedroom." This convenience is backed by the widespread availability of affordable smartphones, competitive data plans offered by operators, and the extension of digital services to rural areas.
Mainstream platforms like SportPesa, Meridianbet, and Betika not only offer football betting but also provide a variety of services such as virtual slot machines, continuously attracting a large number of young users. However, the explosive growth of the industry also brings many challenges, especially as regulatory policies have not kept pace with technological developments, and the risk of youth gambling addiction is rising. Research by the Economic and Social Research Foundation shows that in the 18-35 age group, an increasing number of people are spending a large portion of their income on gambling, and the anonymity of online transactions further complicates intervention efforts.
Looking at the broader African region, Tanzania's gambling participation rate reaches 56%, on par with Ghana, but significantly lower than high-participation countries like South Africa and Kenya. Faced with the digital wave, traditional casinos are also forced to adjust strategies to retain customers, especially as there is a severe loss of the young demographic. Many casinos are starting to introduce a "hybrid mode," extending online services on one hand and enhancing the experience with offline activities such as theme nights and live music performances on the other, while integrating APP loyalty programs, trying to find a new foothold in the digital age.
The gambling industry plays an increasingly important role in Tanzania's economy. In the fiscal year 2023/24, the industry's total revenue reached 212 billion shillings, with cumulative taxes over the past five fiscal years exceeding 922 billion shillings. In the fiscal year 2024/25, gambling tax revenue is expected to reach 2602.1 billion shillings, an increase of 97% over five years. Additionally, the industry has also performed well in attracting foreign investment and creating jobs, with a total of 66.7 billion shillings in foreign direct investment in the last two fiscal years and about 30,000 formal and informal jobs created as of June this year.
Daniel Ole Sumayani, the Corporate Services Director of the Tanzania Gambling Board, pointed out that these achievements are due to the industry's coordinated mechanisms and continuous growth momentum. However, he also admitted that one of the biggest challenges currently faced is the proliferation of unlicensed operators, especially those using so-called "Dubwi" slot machines illegally. These unregistered operators not only cause loss of government tax revenue but also bring community disturbances and underage gambling issues, severely damaging the industry's reputation.
To address this, the Gambling Board is strengthening cooperation with various government departments to curb illegal activities by identifying and prosecuting violators. Additionally, the board plans to deepen cooperation with the media to promote gambling regulatory provisions and guide the public to participate rationally, reducing potential harms. In terms of qualification management, the board has registered 62 gambling companies and issued 8549 licenses, including one national lottery license. Notably, in the fiscal year 2024/25, the board issued a national lottery license to a joint venture between Tanzanian and South African investors, which has invested $20 million.
Despite facing challenges, Tanzania's gambling industry continues to maintain strong growth momentum, with an average annual growth rate of 18% over the past four years. The future development trend of the industry will depend on the perfection of the digital regulatory system, needing to find a balance between securing government tax revenue, protecting consumer rights, and maintaining fair competition. As a casino manager in Dar es Salaam said, "Physical venues need to transform into comprehensive entertainment spaces, while digital platforms must continuously enhance the technological experience to meet the needs of different customer groups." Driven by technological innovation and regulatory standards, Tanzania's gambling industry is exploring a development path with African characteristics.
