Tanzania

African gambling jurisdictions can look simple from the outside, but turn expensive the moment you inquire about licensing, tax, and payment compliance. Mainland Tanzania sits in that exact zone. The jurisdiction has established rules, an active regulator, and demanding fees. The upside is clear market access under a defined legal framework, even though the cost profile may be heavy.

2WinPower breaks down Tanzania’s iGaming authorisation as it works in practice. Our experts show what the law allows, who issues approvals, how much the permits cost, and where operators usually get stuck. The 2WinPower legal team tracks licensing updates and enforcement patterns so our clients can build a compliant operation viable for a long time.

Legal Landscape

The core framework is the Gaming Act (Chapter 41), in force from 1 July 2003 and revised into a consolidated edition in 2019. It sets up the Gaming Board of Tanzania (GBT) and gives it wide authority to license, supervise, inspect, and restrict gaming activity.

Meanwhile, operators should also keep in mind that the Act applies to Mainland Tanzania, not the whole Union. That is relevant for jurisdiction planning and the plans to enter the country’s autonomous region, Zanzibar.

Tanzania is clearly inside the scope of the Gaming Act. However, the bill itself states its application is limited to the Mainland. That creates a jurisdictional boundary that operators must respect when planning product availability, hosting, and market targeting. If your business model includes Zanzibar as a distinct focus, assume that local legal analysis will be required.

Land-Based Gambling

Retail gaming is permitted in Mainland Tanzania under GBT-issued permissions, but the model is premise-led. That means the regulator cares about where play happens, what equipment is used, and who controls the site.

For operators, this segment matters even when the main goal is internet play, because retail structures influence enforcement habits and the overall compliance tone.

Common ground authorisations:

• sports betting (shop model);
• casino licence (premises-based);
• slot machine (device-led model);
• Bingo and lottery formats (licensed products).

Online Gambling

Remote gaming is not treated as a grey area in Mainland Tanzania. The Act explicitly includes internet categories, and GBT lists these options as standard licence types. 

The digital-facing formats that matter most for iGaming:

1. Internet casino licence. This permission is the anchor for RNG-style products delivered online. The same permit cycle rules apply here as for other approvals. The standard term is 12 months from issue date, with renewal mechanics built into the Act.
2. Internet sports betting licence. This category covers online bookmaking under GBT oversight. Cost and tax treatment often make this vertical feel heavier than teams expect, because the tax rate is set at 25% of Gross Gaming Revenue for sports betting.
3. Service provider scope. Tanzania’s framework is not only about operators. The Act also lists a content supplier licence among the types, which is relevant to B2B structures (platform services, operational tooling, and other gaming support in a regulated form).

Financial Nuances

Tanzania combines annual licensing fees, minimum investment requirements, testing requirements, and a tax layer that affects operator revenue and player winnings.

Licence Fees

GBT fee schedules in the Gaming (Amendment) Regulations, 2022 list annual application instalments and yearly licence contributions for key categories. For online products, the headline numbers are straightforward.

Main iGaming routes:

• $40,000 for casino;
• $30,000 for sports betting.

Minimum Investment Capital

GBT also publishes a clear budget threshold.

The obligation splits the requirement by ownership profile:

• $300,000 for a local company;
• $500,000 for a foreign brand.

This is not a soft recommendation. GBT expects evidence of adequate financing, and it requests proof that funding exists to support operations.

Taxes and Withholding on Winnings

The Gaming Act imposes deductions and also sets an additional levy on player winnings. This is where many operators feel the real squeeze, because it affects product margins and user behaviour at the same time.

Key financial nuances to understand:

1. Casino operations are subject to 18% of weekly Gross Gaming Revenue under the Act’s tax section.
2. Sports betting is listed at 25% of GGR.
3. Internet casino is explicitly treated at 25% of GGR.
4. Winnings tax exists as a separate layer, and the Act sets 20% for betting and 12% for casinos.

If you plan pricing, promotions, and withdrawal UX without modelling this properly, the numbers can be punishing later.

Application and Friction Points

The Act describes a formal registration route with a practical document checklist. Renewal is not optional paperwork since the law says a prolongation request must be submitted at least 30 days before expiry. GBT also runs an online registration portal (GLICA), which frames licensing and compliance as a system process, not a one-off submission.

A realistic permit acquisition flow:

1. Scope definition and corporate setup. Choose the activity type first (internet casino, online sports betting, or a narrower scope), then align the company structure with the planned licence category.
2. Premises and operational footprint planning. Even a remote-first plan benefits from clarity on where management sits and how the operational presence is organised, because suitability checks focus on control.
3. Document package build. GBT asks for a business plan or feasibility study, corporate documents, evidence of funding, director documentation, audited financial statements, tax clearance, character references, and more.
4. Vetting and suitability review. Background investigations are a core part of the process, including scrutiny of sources of funds used in the project.
5. Technical testing and certification. GBT expects auditing and certification for systems, devices, and game software, and it names recognised laboratories (including GLI and BMM).
6. Fee payment and licence issuance timeline. Once the Board is satisfied that conditions are met, it can issue the relevant approval, yet the prescribed fee is not refunded if the application is rejected.

Problems tend to show up in predictable places:

• funding evidence gaps (capital is required, proof is checked);
• slow technical certification (testing is a real operational dependency);
• mismatch between product model and licence type (scope mistakes are expensive);
• tax under-modelling (25% GGR changes pricing reality fast).

Compliance Obligations

Getting approval is not the finish line. Tanzania’s framework builds in inspection powers, record-keeping duties, and rules around suspicious or structured transactions.

After the launch, the operational obligations are usually felt in the areas:

• returns and remittance (tax reporting cadence);
• internal controls (documented procedures and oversight);
• record keeping (audit trail readiness);
• integrity controls (anti-cheating and approved equipment rules);
• regulator access (inspection powers).

The Act also prohibits participation by a person under 18 years old. That is not a policy preference but a legal line with enforcement consequences.

Besides, marketing is not a free-for-all. Promotion needs to be planned as a compliance item according to the Act requirements.

Crypto rails can appear attractive for cross-border flows, yet the gaming framework is not a payment rulebook. If you plan to accept digital assets, treat it as a separate financial compliance question (banking partners, AML controls, transaction monitoring).

Opportunities and Challenges

Tanzania is large enough to matter, and the mobile-first direction is visible in connectivity indicators. Still, this is not a cheap launch jurisdiction. The costs are measurable, and the tax structure is heavy.

What creates upside:

• scale potential (population base);
• mobile usage growth (broadband subscriptions per 100 people);
• clear licence categories for internet play (no need to invent a workaround).

What creates challenges:

• high GGR tax in key verticals (25% is a major margin event);
• annual USD licence fees (cash outlay remains constant even in weak months);
• withholding on winnings (player experience and retention can suffer);
• testing and certification dependency (launch timelines are not only about code).

The Main Things about Tanzania

The mainland country has a functioning licensing framework for online gambling, and the regulator has a defined toolkit to enforce it. The price of legitimacy includes fees, capital thresholds, and taxes that will shape the business from the launch.

Key aspects about the jurisdiction:

• The Gaming Act (Cap. 41) is the backbone, with the Gaming Board of Tanzania as the central licensing authority.
• Internet casino and sports betting licences exist as standard categories, not as exceptions.
• Annual fees for online approvals include $40,000 for internet casinos and $30,000 for sports betting.
• Minimum investment capital is published at $300,000 for local companies and $500,000 for foreign ones.
• Gaming tax and withholding create real pressure, with 25% GGR listed for sports betting and internet casino, plus a stated 20% tax on winnings.

If you want a compliant launch path in Tanzania, 2WinPower can help you scope the licence, assemble the document pack, and deliver a platform stack that matches the regulator’s expectations.

Order a turnkey casino solution for a legal operation in Africa or any other cherished destination. Buy all the necessary software for your project at 2WinPower.