The betting industry in Tanzania has grown rapidly over the past decade, driven by mobile penetration, digital payments, and regulatory liberalization. In 2025 alone, sports betting revenue reached US$72.41 million, while total gambling revenue grew to TZS 260.21 billion—a 97% increase over four years. The government collected TZS 17.42 billion in taxes by April 2025, contributing roughly 1–2% of national tax revenue. Yet behind these fiscal gains lies a complex web of social and economic risks: rising youth gambling, mounting household debt, productivity losses, and long-term inequality.

This contrasting reality—strong economic benefits but equally significant social costs—is what makes Tanzania’s betting industry a double-edged sword. Read More: The Betting Industry in Tanzania

1. Why Betting Is an Economic Opportunity

1.1 Strong Revenue Performance

Digitalization and mobile money (with 56.3 million internet users) have fueled exponential growth. Betting platforms now rely heavily on smartphone-based participation, with 94% of bettors across Africa—including Tanzania—using mobile apps or SMS betting systems.

1.2 Growing Government Revenue

Tax collections from betting have increased steadily:

Source: GBT, TRA, Statista

The Betting Industry in Tanzania

1.3 Employment

The industry contributes:

• 30,000 jobs (tech, marketing, agents, vendors)
• Projected to reach 40,000+ jobs by 2030

1.4 Contribution to GDP

Betting currently contributes 0.5% of Tanzania’s GDP, but projections show it could add 0.5–1% by 2030 under regulated growth.

1.5 Market Projections to 2030

Source: Statista (2025)

The Betting Industry in Tanzania

Why this is positive:
The industry supports government financing, creates jobs, boosts the digital economy, and strengthens the entertainment sector.

2. Why Betting Is a Socioeconomic Threat

Despite economic gains, betting has fueled rising social risks—especially among youth.

2.1 Extremely High Youth Participation

According to GeoPoll:

Source: GeoPoll 2025

The Betting Industry in Tanzania

2.2 Low-Income Vulnerability

• 45% of bettors earn below TZS 300,000/month
• 80% of the lowest-income group (<TZS 100,000) bet weekly
• Betting is concentrated in Dar es Salaam and Arusha among informal workers

Youth in these groups often bet due to:

• Financial pressure
• Lack of stable incomes
• Peer influence
• Entertainment needs

2.3 Mounting Personal Financial Losses

Bettors lose substantial income monthly:

Sources: GeoPoll, World Bank, GBT

The Betting Industry in Tanzania

2.4 Social Costs

The rapid rise in betting participation in Tanzania has produced a series of escalating social challenges that extend far beyond the excitement of the games themselves. One of the most immediate consequences is the increase in household debt, as many young people—particularly low-income earners—lose a significant portion of their limited income to betting. These losses reduce the ability of households to invest in essential areas such as education, skills development, and small business growth, ultimately weakening human capital formation over time. The psychological burden is also notable: surveys show that 25% of daily bettors report mental health strains linked to anxiety, stress, and the emotional highs and lows of gambling. In some cases, these financial and psychological pressures contribute to school dropouts, especially among students who turn to betting with the hope of winning quick money. Families in low-income areas experience heightened instability as betting losses fuel conflict, erode savings, and diminish the resilience of already vulnerable households. Together, these patterns indicate that the social costs of the betting boom are growing at a concerning pace.

2.5 Risk by 2030

If the betting industry continues to expand without stronger regulatory measures, Tanzania faces substantial economic and social risks by 2030. Projections show that the country could lose as much as TZS 1 trillion cumulatively in productivity due to time spent gambling, reduced focus on work, and the long-term effects of addiction. Youth unemployment, which already stands at 26%, may worsen as more young people allocate time and money to betting rather than skill-building or entrepreneurship. The proportion of daily bettors—currently 31%—is likely to grow, increasing the number of people exposed to addiction and deepening the financial vulnerabilities of low-income groups. At the macro level, the economy could experience a 2–3% GDP decline caused by lower productivity, reduced household investment, and rising social welfare burdens. Without timely safeguards, the costs of unregulated betting may surpass the industry’s fiscal contributions.

3. The Double-Edged Sword Explained

The betting industry in Tanzania sits at the intersection of opportunity and risk. On one hand, it functions as an economic growth engine—expanding government tax revenues, creating thousands of jobs, accelerating digital adoption, supporting the entertainment industry, and contributing to GDP growth. These benefits demonstrate the sector’s potential to play a meaningful role in national development.

On the other hand, the industry has become a growing social and economic risk vector. High levels of youth gambling reduce productivity, while consistent monthly financial losses deepen poverty among low-income households. The accumulation of debt destabilizes family finances, and widespread addiction contributes to mental health burdens. As betting participation rises faster among vulnerable groups, income inequality expands, and the economy risks a GDP drag of 2–3% under the worst-case scenario.

The core issue is that the same forces driving the industry's growth—large youth populations, rapid digital access, and expanding urbanization—also intensify the risks. This creates a paradox: betting boosts national revenue yet drains household income; it creates jobs yet erodes productivity; it expands GDP yet may cost the country more in long-term social losses than it contributes in taxes. In essence, the industry strengthens the national budget while weakening many families—capturing the reality of a true double-edged economic dynamic.

4. Policy Actions to Balance the Two Sides

To transform betting from a threat to a sustainable economic driver, Tanzania should:

1. Strengthen digital age verification (18+).
2. Introduce progressive betting taxes targeting high-frequency gamblers.
3. Fund addiction support and counseling programs.
4. Integrate financial literacy programs in schools and youth centers.
5. Mandate responsible gaming mechanisms (self-exclusion, spending limits).
6. Improve enforcement of licensing and compliance.

With these measures, betting can remain an engine of revenue without undermining the social and economic well-being of young Tanzanians.

Conclusion

Tanzania’s betting industry stands at a crossroads. With revenues exceeding TZS 260 billion, thousands of jobs created, and digital growth accelerating, the sector is undeniably a powerful economic actor. Yet the parallel rise of addiction, youth financial loss, debt, and productivity decline paints a sobering picture.

The industry is a double-edged sword because:

• It boosts national economic growth while simultaneously
• undermining household welfare and long-term human capital.

By 2030, the sector could either contribute 1% to GDP or cost the economy TZS 1 trillion in losses—depending on the strength of regulations implemented today.

A balanced, data-driven policy approach is therefore essential to ensure that betting supports Tanzania’s development rather than destabilizing it.