Tanzania is a country in eastern Africa , south of the equator with its capital in Dodoma. On the northern part, it is connected to Kenya and Uganda while on the southern part are Zambia, Malawi, and Mozambique to the west are Rwanda, Burundi and Congo while on the eastern side is the Indian Ocean. Tanzania is an historically and culturally diverse country, and in the last few years, has gained recognition for its properly organized gambling sector, especially in the sphere of sports and Tanzania bookmakers.
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Table of Contents
Summary of Key Events
History of Tanzania’s Gambling Laws
Key Milestones
- 1963: After breaking away from the United Kingdom, it gained independence.
- 1967: The first form that was formally recognized by the government was the Pools and Lotteries Act that allowed for lotteries and other similar games.
- 1974: The National Lotteries Act regulated and completely brought the lotteries ’ industry under one roof and brought in the now-defunct Tanzania national lottery.
- 1992-2003: The lottery business was also opened up during this time, casinos were allowed under the National Investment (Promotion and Protection) Act of 1992 and the Tanzania Investment Act of 1997.
- 2003: The Gaming Act provided a complete overhaul of the industry by legalizing and further expanding the types of gambling, including online gambling, and increasing the levels of control.
- 2012: Online gambling was legalised in 2012 and was operational from the year 2013 through the Gaming (Internet Gaming) Regulations.
- 2013: The first online gambling license was granted to iPlay8Casino in the year of 2004. com.
- 2019: The new regulation came into force at the end of June 2020 and is known as the Revised Gaming Act of Tanzania; this legislation replaced the previous Gaming Act of the year 2003, which is the main piece of legislation that governs the gambling sector in Tanzania.
Regulatory Framework
The body that has the responsibility of regulating the gambling business in Tanzania is the Gaming Board of Tanzania (GBT). Basically, it was founded under the Gaming Act Cap. 41 and with its establishment on the 1st of July 2003, the GBT is tasked with supervising, monitoring and controlling of gaming business throughout the country. The GBT prevails over the compliance with the law, the issuance of different kinds of licenses and the control of the fairness of the gaming business.
Different Kinds of Licenses and Charges
The GBT offers several types of gambling licenses to private companies:
Land-Based Licenses:
- Casino License
- A Slot Machine License also commonly referred to as a Slot Hall License.
- Sports Betting License
- Sports Betting Terminal License
- Lottery License
- Bingo License
Online Licenses:
- Internet Casino License
- SMS and Online Lottery Licence
- Internet Sports Betting License
- Virtual Sports Betting License
Investment Requirements
To secure a gaming license, companies must meet specific investment capital requirements:
- Local Companies: Starting capital requirement of US$ 300,000.
- Foreign Companies: Investment capital of not less than USD 500,000.
Taxes and Fees of Tanzania Bookmakers
Gaming taxes in Tanzania vary based on the type of gaming activity:
- Sports Betting (online and retail): 25% of Gross Gaming Revenue (GGR) + 15% on the net winnings of the players. Dedication of the tax remitted shows that 5% goes to the Sports Development Fund.
- SMS Lotteries and Internet Casino Operations: Twenty-five percent of GGR + fifteen percent on net winnings.
- Street Slot Machines: TZS 100,000 for each machine per month + 15% on the gross profits.
- National Lotteries: 20% of GGR + 15% on the net winnings.
- Casino Operations: 18% of weekly GGR and 12% on net winnings for the week.
- Virtual Games: 10% of GGR + 15% on net winnings.
- Other Gaming Products (under section 51): 10% of GGR + 15% on net winnings.
Player Taxes
There is no requirement of paying taxes directly on the gambling winnings that the players make. However, gambling companies are required to deduct the following percentages from players’ winnings:
- Casino Gambling: It is 12% of the net winnings subject to tax.
- Sports Betting: A tax of 10% on the net winnings is to be paid.
- Lottery: 15 percent on the net winnings.
- Bingo: With regard to the taxes, a 10 percent tax will be applicable on the net winnings.
- Other: Ten percent of the net winnings is taxed.
- Online Gambling: 20% of the net winnings are deducted as the tax.
Tanzania Sports Betting
The sports betting business in Tanzania has been rapidly growing due to strict laws that have been put in place to govern it. Tanzanians are fond of sports betting and this market is expanding at a fast pace due to the availability of the online betting services.
Popular Sports for Betting
- Football: Football being the most watched sport in Tanzania, it receives the most bet compared to other sports especially on international leagues such as the English Premier League, La Liga and UEFA Champions League.
- Basketball: Sports betting especially for NBA games and other significant basketball tournaments is also a trend.
- Athletics: Tanzania is well-known for long-distance running, and therefore athletics betting has a lot of fans.
- Cricket: The increase in the number of cricket fans in Tanzania especially after events like the ICC Cricket League Division 4, has boosted the betting on the cricket matches.
Sports Betting Licenses
In order to offer such services legally, the sports betting companies have to acquire proper licenses from GBT. The licensing process makes it possible for the operators to abide by the set guidelines to make sure that every participant is protected and the betting is fair.
Prohibited and Allowed Bets
The GBT defines the kinds of bets that are allowed to be made so that all bets allowed are reasonable and un rigged. The majority of the types of sports betting are allowed although any other forms of betting that are not endorsed by the GBT are prohibited.
Conclusion
As for the legal and regulatory framework of Tanzania bookmakers and Tanzania Sports Betting, they are well outlined and well-protected, which helps both the operators and the clients. Thus, the GBT remains focused on maintaining and enhancing a healthy and honest gaming environment that has a positive impact on the nation’s revenue.
FAQ of Tanzania Bookmakers
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