Sportsbook operators call for tax waver

The Sportsbook operators in Tanzania, often called (TSBA) Tanzania Sports Betting Association is asking the government for tax waver due to the impact covid-19 pandemic as had on the sports betting industry in the country.

That has seen all significant sports league suspended across the globe. These have had a substantial effect on the sports betting brands in majorly African countries, severely that have seen a drop in sales drastically across the region. However, the Chairman of the (TSBA) Jimmy Kenneth Masaoe quoted said on behalf of the association we have written the government calling for help because we are all feeling the effect of Covid-19 pandemic. It is a situation for us the sports betting companies in Tanzania to seek full government assistance.

Due to shortage, in the circulation of money unlike when regular sports football leagues are played in Europe, so we are looking at ways to dialogue with the government to reduce some taxes so we can at least cover our cost. While there is a possibility that many will go bankrupt thus, according to local reports in Tanzania, sports betting contributed 3.5% of the country GDP Gross Domestic Product in 2019. However, currently, the country boost over 2,600 betting shops with over 22 licensed sportsbook operators in the country most which are located in the Der ser Salem.

Gambling Laws and Tax Tanzania

However, Tanzania has the reputation of being a pioneer in the field of gambling on the African continent. The Investment Promotion and Protection Act of 1992 and the Tanzania Investment Act of 1997 marked the beginning of legal gambling in the country as they stimulated leisure and tourism-related investment in the country, and along came gambling as well.

The government decided that it needed to regulate this sector more effectively. 1n 2003, with the enactment of Gaming Act of Tanzania the country established legal body, the Gaming Board of Tanzania to oversee the gambling industry, issue licenses to operators and collect taxes from gambling premises. In contrast, the board tax all licensed operators in the tune of 25% of their GGR (Gross Gaming Revenue). In comparison, 20% tax applies on the bettor’s net winnings, which was initially 18% in 2015/16 as amended in section 31A of the Gaming Act Cap 41.