Tanzania, the place where gambling is well regulated and business is encouraged
I can’t help but admit that after reading up on the gambling legislation in Tanzania, I was a bit surprised, and not in any way, but in a pleasant way. Tanzania has a very good gambling legislation and all the necessary levers to turn this sector into a leading branch of the economy here.
Tanzania
The Gaming Board of Tanzania is a gaming regulatory body that was established under the Gaming Act Cap. 41 and came into force on July 1, 2003. It is responsible for the supervision, monitoring and regulation of the conduct of gambling activities in Tanzania.
The gambling industry in Tanzania was previously regulated under the Pools and Lotteries Act of 1967 and the National Lotteries Act of 1974. Until the start of economic reforms in 1985, only the Tanzania National Lottery had significant gambling activity in Tanzania. The economic liberalization policy and reform programmes, in particular the enactment of the National Investment Promotion and Protection Act of 1992, have stimulated investment projects in the hospitality and leisure industry. Further economic reforms necessitated the formulation of the national policy on gambling activities and the subsequent enactment of the Gaming Act Cap. 41. 41, hence the establishment of the Gaming Board of Tanzania.
The gambling licensing process in Tanzania
Before applying for a gambling license, the applicant must meet a set of criteria set out in section 26 of the Gambling Act, which include:
-never have previously had a gaming license refused, revoked or suspended nor have withdrawn an application for a gaming license in mainland Tanzania or any other country;
-Applicant (including directors and shareholders) must have a clean criminal record;
-must provide evidence of adequate funding;
-must have gaming premises approved by the Gaming Board.
The application for a gambling license shall be submitted to the Gambling Commission by submitting the prescribed documents. Upon receipt of the application for a gaming license, the Gaming Commission shall conduct investigations to determine the suitability of the applicant, including the process of verifying the shareholders, directors and business and the applicant, and the Gaming Commission, if satisfied that the applicant has met the conditions for the granting of a gaming license, shall issue a gaming license and may impose conditions or restrictions on the license depending on the type of gaming activity that the licensee may conduct.
Legal forms of gambling in Tanzania include:
– Sports betting (retail and online)
– Online and land-based casinos
– Virtual gaming
– SMS lotteries
– Scratch tickets
– Slot machine operations
The types of gambling licenses provided in Tanzania are:
Casino license for conducting table games and slot machines;
Slot machine license for promoting slot machine business in a shop;
Manufacturer’s certificate for manufacturing gaming equipment, including spare parts thereof;
Vendor or distributor license for supplying, selling or servicing gaming equipment;
Accreditation license for a person engaged in non-gambling activities on gaming premises;
Support license, required for a person engaged in gaming activities or a gaming employee;
Online casino license for conducting casino games via remote devices with internet connection;
SMS lottery license for conducting lotteries via SMS;
Principal license for the operation of sports betting and slot machines;
Online sports betting license;
Retail sports betting license;
National lottery license to conduct national lotteries;
Section 41(3) lottery license to conduct commercial lotteries;
Service provider license to provide services in relation to gambling operations;
Gambling consultancy license;
Virtual gaming license
Cost for obtaining a gambling license in Tanzania
o Online casino license/ Live casino license: Application fee of TZS 1,000,000 and license fee of USD 40,000.
o Online sports betting license: Application fee of TZS 500,000,000 and license fee of USD 30,000.
o Retail Sports Betting License: Application fee of TZS 500,000,000 and license fee of TZS 1,000,000
o SMS Lottery License: Application fee of TZS 500,000 and license fee of USD 30,000
o National Lottery License: Application fee of TZS 1,000,000,000 and license fee of USD 50,000
o Producer Certificate License: Application fee of TZS 500,000 and license fee of TZS 1,000,000
o Service provider license: Application fee of TZS 500,000 and license fee of TZS 1,000,000
Taxes imposed on gambling operators in Tanzania
Gambling operators in Tanzania are subject to various taxes:
Sports betting: 25% of gross gaming revenue and 15% of net winnings.
Casinos: 18% on gross gaming revenue and 12% on net winnings.
Virtual gaming: 10% on gross gaming revenue and 15% on net winnings.
Other important information to remember about gambling legislation in Tanzania
It usually takes up to 30 days from the date of application for the Gambling Commission to approve or reject a gambling license.
Foreign companies can invest, but must meet certain criteria, including a minimum investment capital of $500,000.
Companies can apply for multiple licenses depending on the type of gambling operations they intend to conduct. For example, a company can hold both a sports betting license and an online casino license.
Gaming licenses in Tanzania are valid for one year and must be renewed annually by submitting a renewal application and payment of the relevant renewal fees to the Gaming Board of Tanzania.
Conclusion
The gambling legislation in Tanzania is a modern one, which can easily respond to all the needs of an operator wishing to do business in this country, and an opportunity for Tanzania to gain from these regulations, while maintaining a clean social environment for its inhabitants.
Sources: gamingboard.go.tz, kgpartners.co.tz, medium.com, geniusgamingconsult.com
