Gaming Tax in Tanzania: A Complete Guide to GGR Tax and Winnings Tax (2027)

Two taxes that decide your margin

Running a gaming operation in Tanzania means dealing with two separate tax obligations, and both directly affect profitability and compliance.

1. Gaming tax is charged on the operator’s own revenue. It’s a cost of doing business, and for sports betting it takes a quarter of gross gaming revenue before any other expense.
2. Tax on winnings is deducted from players’ payouts. It’s the player’s tax, but the operator is legally responsible for collecting and paying it.

Confusing the two, using outdated rates, or letting your betting system and your tax returns drift apart can create significant tax exposure, often without anyone noticing until TRA or the Gaming Board does.

Both taxes are set by the Gaming Act, Cap. 41, and both change regularly through Finance Acts. This guide reflects the law as amended by the Finance Act 2025.

Glenrich Consultants is a financial risk partner for gaming operators and investors in Tanzania. We help businesses entering from abroad understand their real tax exposure before they commit, stay compliant every month, and protect the business from fraud and regulatory risk.

Gaming tax on gross gaming revenue

What gross gaming revenue means

The Gaming Act defines gross gaming revenue (GGR) as:

the collective amount of wagering or staking placed by players minus the collective amount of winnings paid out to players (s. 3).

In simple terms: GGR = total stakes − winnings paid out.

Two words in that definition matter more than they look:

• “Collective.” GGR is calculated across all players for the period, not bet by bet.
• “Paid out.” On a plain reading, only winnings actually paid reduce GGR. The Act doesn’t deal with unclaimed winnings directly. An operator that deducts winnings when they’re declared rather than when they’re paid risks understating GGR, so the treatment should be decided and documented.

Gaming tax rates

Two notes on the table:

• Slot machines are taxed per machine, not on revenue. The tax is the same whether a machine earns a lot or very little, so low-performing machines become expensive quickly.
• Part of the sports betting tax is earmarked. Five percent of the gaming tax collected from sports betting goes to the Sport Development Fund. This changes where the money goes, not how much the operator pays.

The Minister can change the Second Schedule by notice in the Gazette (s. 33(3)), so these rates can move without a new Act of Parliament.

When and where to pay

Gaming tax is filed and paid to the Commissioner General of the Tanzania Revenue Authority on or before the 7th of each month for the previous month (s. 33(4)).

If an operator underpays, the Gaming Board of Tanzania can issue a demand notice requiring immediate payment of the tax plus interest. That demand counts as a final demand notice (s. 33(5)). The Tax Administration Act applies to gaming tax for record-keeping, interest, enforcement, objections and appeals (s. 33(6)).

Tax on players’ winnings

The rates

Source: Gaming Act, s. 34, as amended by the Finance Act 2025.

The Finance Act 2025 raised sports betting from 10% to 12%, and land-based casinos from 12% to 13%. Part of what’s collected now goes to the AIDS Trust Fund and the Universal Health Insurance Fund. Again, this changes where the money goes, not the rate.

Winnings that have been taxed this way are not also subject to income tax in the player’s hands (s. 34(3)).

The operator’s duties

The licensee is the withholding agent for the player (s. 34(4)). It must:

1. Give players the notifications needed to collect the tax
2. Withhold the tax at the time the winnings are paid
3. File the return and remit the tax to TRA electronically, by the 7th of the month after payment

The Finance Act 2025 simplified this. Before, operators also had to file a separate certificate of payment within 15 days after each month. That requirement has been removed.

For sports betting, every ticket must show the gaming tax on expected winnings and the net expected winnings (Sports Betting Rules 2016, rule 19). Players should know before they bet what they will actually receive.

Gross or net winnings: what operators should do

This is one of the most important compliance questions for any betting operator, and the documents don’t fully agree.

What the law says. The Act defines a “winning” as the receipt of an amount of payment or other consideration after taking part in gaming (s. 3), and taxes “the amount or value of winnings” (s. 34). Read plainly, that points to the full amount paid to the player: the gross basis.

What has been done in practice. The Gaming Board’s return forms under the 2016 Sports Betting Rules calculated the tax on net winnings: the payout minus the winning stake. Those forms haven’t been formally replaced in the material publicly available, so some operators still follow them.

Why it matters. Take a player who stakes TZS 10,000 and receives TZS 50,000:

Across thousands of bets a month, the gap becomes large. If TRA takes the gross view and the operator has withheld on the net basis, the operator, as withholding agent, can be held liable for the shortfall plus interest, often going back several years.

What to do while the position is unconfirmed:

1. Choose a basis deliberately and record why, with reference to the Act and any guidance relied on.
2. Consider a private ruling from TRA to get certainty in writing.
3. Make the betting system, tickets and returns match. The same basis must run through all three.
4. Quantify the exposure. If you use the net basis, calculate what the gross basis would have produced each month, so the risk is known and can be provided for.
5. Keep monthly reconciliations between system reports and returns. They are your best defense in an audit.

A worked example

A sports betting operator has the following month:

Winnings tax is then withheld from the TZS 800 million paid to players:

• On the gross basis: 12% × 800,000,000 = TZS 96,000,000
• On the net basis, if winning stakes were TZS 300 million: 12% × 500,000,000 = TZS 60,000,000

The withheld tax is the players’ money, not the operator’s cost. But the operator must collect it correctly, report it and pay it on time. Both amounts go to TRA by the 7th of the next month.

What the operator actually keeps

Put in simple terms, here’s an illustration for every TZS 100 of GGR. It assumes operating costs of TZS 50; real costs vary widely.

On these assumptions, under 16% of GGR reaches a foreign shareholder. That’s why errors in GGR, withholding or group charges have such a large effect on investment returns.

Other taxes that touch gaming

Gaming operators are also subject to the general tax system. The points most specific to gaming are:

• Corporate income tax on profits, under the Income Tax Act.
• Withholding on marketing commissions. Since the Finance Act 2025, commissions paid for gaming advertising or promotion fall within withholding tax under the Income Tax Act. Affiliate, agent and promoter arrangements need to account for this.
• Employment taxes and levies on staff, as for any employer.
• VAT and other indirect taxes, depending on the services and supplies involved. We cover these in a separate article.

For foreign operators: the full tax picture

Gaming tax is only part of what a foreign-owned operator pays. To understand the real return, look at three layers:

1. Tax on the business. Gaming tax on GGR, then corporate income tax on profits, currently 30% at the standard rate.

2. Tax on getting money out. Dividends paid to a foreign parent are subject to withholding tax, typically 10% for non-residents. A tax treaty between Tanzania and the parent’s country may reduce this.

3. Tax on group charges. Many international operators charge their Tanzanian company for the betting platform, brand, software or management services. Payments to non-residents for services and royalties generally attract withholding tax, typically 15%. They must also be priced at arm’s length under transfer pricing rules. If TRA considers the charges too high, it can disallow them and assess extra tax and interest.

This is where foreign operators most often get surprised. A structure that works well elsewhere can cost far more in Tanzania if group charges, ownership and profit flows aren’t planned together from the start.

The monthly tax calendar

The Board also has read-only access to every sports betting operator’s system. Its required reports include a tax report showing total stakes, winning stakes, winnings paid, net winnings, tax on winnings and gaming tax (Sports Betting Rules, Annex A). The Board can check your returns against your own data at any time.

Common gaming tax mistakes

Using outdated rates. The Sports Betting Rules 2016 still show 6% of stakes and 18% of net winnings. The 2023 revised edition of the Act shows winnings tax rates that the Finance Act 2025 has since changed. Always work from the latest Finance Act.

Deducting unpaid winnings from GGR. GGR uses winnings paid out. Treating declared but unclaimed winnings as paid can understate GGR.

Treating bonuses and free bets inconsistently. The Act doesn’t spell out how promotional credits affect GGR. Agree a treatment, document it and apply it consistently, rather than leaving it to each month’s return.

Mismatched system settings. If the betting system calculates winnings tax on a different basis from the return, the error repeats on every ticket.

Unplanned group charges. Platform and management fees to a foreign parent, set without transfer pricing support, invite disallowance and penalties.

Late payment. The 7th comes around every month, and the Board can issue a final demand notice with interest straight away.

Forgetting slot machines are taxed per machine. A machine pays the same monthly tax whether it’s busy or idle.

Frequently asked questions

What is the gaming tax rate for sports betting in Tanzania?

25% of gross gaming revenue, plus 12% tax on players’ winnings, which the operator withholds.

Who pays the tax on winnings?

The player bears it, but the operator must withhold it from the payout and pay it to TRA.

When are gaming taxes due?

Both gaming tax and withheld winnings tax are due by the 7th of the following month.

Are gaming winnings subject to income tax?

No. Winnings taxed under the Gaming Act are not also subject to income tax (s. 34(3)).

Did the Finance Act 2025 change gaming tax?

It raised winnings tax for sports betting (to 12%) and land-based casinos (to 13%), simplified remittance, and brought gaming advertising commissions within withholding tax. Gaming tax rates on GGR were unchanged.

Can a foreign parent charge its Tanzanian company platform fees?

Yes, but the payments attract withholding tax and must be priced at arm’s length. Unsupported charges can be disallowed by TRA.

Your financial risk partner in Tanzania

Operating in Tanzania from abroad means relying on someone you trust on the ground. Most firms will file your returns. Glenrich looks after the financial interests of your investment, in three ways:

1. Know your exposure before you commit. We model your full tax burden and the return that actually reaches your shareholders, structure ownership and group charges, and test your plan against current law before you invest.

2. Independent financial oversight, every month. We reconcile your betting system to your revenue, your returns and your bank accounts. We make sure GGR and winnings tax are calculated on a documented, defensible basis, and file with TRA and the Gaming Board on time. Your head office and shareholders get clear monthly reporting on what’s really happening in Tanzania.

3. Protect the business. As certified fraud examiners, we design internal controls, review fraud risk across payments, bonuses and staff, and help you meet anti-money laundering obligations before they become regulatory problems.

Planning to enter Tanzania? Let’s talk.

If you’re a CFO, operator or investor outside Tanzania looking for a trusted local partner, we work with international clients by video call, in English, around your time zone.

[Book a free introductory call] · or WhatsApp us at 0745 50 99 66

Glenrich Consultants · Samora Tower, Dar es Salaam, Tanzania

About the author

Thomas Mubondo, CPA, CFE is the founder of Glenrich Consultants, an accounting, advisory and business structuring firm in Dar es Salaam. He advises foreign investors and growing businesses across Tanzania Mainland and Zanzibar on tax, financial controls and fraud risk.

Sources

• Gaming Act, Cap. 41 (Revised Edition 2023), ss. 3, 33, 34 and Second Schedule
• Finance Act, 2025 (Act No. 11 of 2025), Part XI and s. 56
• Sports Betting Rules, 2016

Related: Gaming and Betting Licenses in Tanzania · Business Licenses in Tanzania