How does the gaming industry affect Tanzania?

Tanzanian gaming, like much of Africa, is a new business. But it’s already big and growing fast. It was worth $16 million in 2018 and is expected to almost treble to $31 million by 2023. From whence is this growth?

The Tanzanian gaming history.

Tanzania’s growing urbanization has led to the growth of gaming. This increased employment, which increased disposable cash for leisure activities.

Like the rest of the continent, the enormous and expanding young population is critical. Currently, 64% of the country’s population is under 24. Tanzania’s youthful population is expected to grow from 17.8 million in 2015 to 62.3 million in 2065.

Sports betting was allowed in the late 1990s, which aided the process. As sports betting moved from a physical to an online manner, Tanzanians used the Internet more, which aided gaming and game-like activities.

As Internet users grew, so did smartphone users in the nation. In 2019, 43% of people have Internet access. The use of smartphones in Tanzania was expected to expand at a CAGR of 19 percent at the time. By 2024, this will be over 30 million users. PUBG Mobile, Candy Crush Saga, and Garena Free Fire are among the country’s top-grossing gaming applications for both Android and iOS users.

Gambling in Tanzania

More than 20,000 Tanzanians work in gaming firms. So gaming is becoming a major source of employment. Currently, the industry provides over 3% of GDP.

According to James Mbalwe, Director General of the Tanzania Gaming Board, the gaming business is drawing more investment. “Over the last five years, Tanzania has witnessed enormous rise in tax receipts from gaming activities, owing to the increasing number of players and tighter controls.”

The board plans to convert the present revenue collecting mechanism to computerized. The technology will be linked to the gambling firms’ daily activities. This will considerably improve revenue collecting efficiency.

Tanzania’s gaming sector is expected to develop rapidly, given to the country’s large young population and rising smartphone user base.

In the remainder of the continent, data suggest that games like casino games, PUBG, and Candy Crush Saga are among the most popular apps. Casino games are popular in Kenya, Nigeria, Tanzania, and South Africa.

How can iGaming help the numbers?

In terms of casino games, Tanzania legalized gambling in 1992 and internet gambling in 1999, making it one of the most advanced African nations. The Gaming Board of Tanzania was founded in 2003 to regulate the gaming sector.

The Gaming Board legalized Tanzania’s first online casino in 2013, which is now available throughout Africa. Online gaming is now quite popular in Tanzania. The legal system protected users while allowing companies to grow.

What about other nations?

In addition to Tanzania, South Africa has a high prevalence of gambling. There are 45 casinos in South Africa, the most in Africa, and over 90% of people have attempted gambling at some time in their life. Online casinos, for example, provide bonuses and promotions, secure banking options, and a considerably larger selection of games than most land-based casinos. The Covid-19 problem exacerbated this. Notably, iGaming is not entirely legalized in the state.

Tumani Maligana, national manager for Tanzanian iGaming startup Parimatch, says the epidemic initially harmed the company. But this was merely a spur to create more products:

No one knew what to do. Not having a casino product at the time meant that many of our gamers switched to rivals who did….we sought for a casino license immediately and were granted one in May… Even when live sports returned to our screens, casinos remained to be our main source of revenue. Our non-sports products have included virtual and slot games. Previously unknown, these games are now highly popular.”

Tanzania will be a major participant in the African gaming market. Tanzania’s gaming sector is clearly growing, while being behind behind regional market leaders like Kenya and continental leaders like South Africa. Even the Covid-19 epidemic, although a hit, acted as a spur for new product development, eventually pushing customers towards online gaming possibilities.

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