Gaming Business/activities in Tanzania are regulated by the Gaming Board of Tanzania (GBT) which is established under the Gaming Act Cap. 40 R.E 2019. The Gaming Regulations of 2003 as amended from time to time.
The law defines gaming activities to mean any game played with cards, dice, equipment or any mechanical electromechanical or electronic device or machine for money, property, checks, credit or credit card or any representative of value, including but without limiting the generality of the foregoing, bingo, wheel of fortune, baccarat, slot machine, horse race, lottery, wager or stake, any banking or percentage game or any other game or device approved by the Board, but does not include games played with cards in private homes or residences in which no person makes money for operating the game, except as a player, or games operated by charitable or educational organizations approved by the Board;
Before one ventures into the gaming business, it is always safe to seek clarifications on various matters including the general requirements and the procedures for getting the license.
Ardean Law Chambers provides legal services relating to registration of gaming companies, licensing support services and after-registration compliance services. This legal brief provides, in a nutshell, basic information relating to obtaining a gaming license in Tanzania.
A gaming License is issued to any person who satisfies the licensing requirements. It can be a person, a partnership firm or a limited liability company depending on the type of license one is applying for. However, despite of the type of license, the applicant must have been registered by the Business Registration and Licensing Agency (BRELA) issued with the Certificate of Registration (for the case of Sole Proprietor or Partnerships) or Certificate of Incorporation for the case of companies. The applicant must also be registered with the Tanzania Revenue Authority and issued the Tax Identification Number Certificate. A tax Clearance Certificate is sometimes required.
Gaming Licenses are granted to suitable persons with proven probity standing. All applicants are subjected to background investigations and vetting processes including sources of funds to be used in the business.
TYPES OF GAMING LICENSES
There are several gaming activities. Each activity has its license. The licenses which can be granted by the Gaming Board of Tanzania are enumerated by Section 26(1) of the Gaming Act. Examples of Gaming Licenses include the following:
- casino license for conducting table games and slot machines.
- slot machines or route operation for promotion of slot machines business in a shop.
- manufacturer’s certificate for manufacturing of gaming equipment including its spare part.
- Seller’s or distributor’s license for supplying, selling, or servicing gaming equipment.
- key gaming employee for a person in charge of any gaming activity at all times when the game is conducted.
- accreditation license for a person engaged in non-gaming activity within gaming premises.
- support license, required for a person employed in gaming activities or a gaming employee.
- a retail gaming license which is required by a retailer on a premise on which he maintains sole and exclusive legal possession of the entire premise for which he is issued.
- internet casino license for conducting casino games through remote devices with internet connection
- SMS lottery license for conducting SMS lotteries for commercial purposes.
- principal license for sports betting and slot machines operations.
- Internet sports betting license
- ports betting terminal license
- national lottery license to conduct of national lottery
- lottery license issued according to section 41 (3) to conduct business Lotteries.
- service provider license to provide services on gaming operations.
- gaming consultancy license.
- Virtual games license; and
- Certificate of suitability for the license of gaming activities.
GENERAL CONDITIONS AND QUALIFICATION
Section 27 provides the general condition for the grant of a license in that the grant of any license is made on a mandatory condition that:-
- A licensee holds himself to remain qualified to hold such a license all the time when it is valid; and
- A licensee shall at all times provide to the Board and other law enforcement authorities assistance and information necessary to ensure that policies and other requirements are achieved.
Regulation 3 of the Gaming Regulations, 2003 provides for the general qualifications in respect of the issuance of a gaming license. No person shall be issued a gaming license unless that person:
- has never been denied a gaming license by the GBT or any other
- has never had a gaming license suspended or revoked here in Tanzania or in another
- has never withdrawn an application for any gaming license anywhere for whatever
- possesses gaming premises that are deemed suitable by GBT; (It is strongly advised that applicants should first identify the premises and seek clarification from GBT as some of the premises may not be suitable for gaming purposes. complies with all the provisions of the Act and the Gaming Regulations,
- has not been convicted of any criminal offence involving fraud or dishonesty, and
- has proof of adequate financing available to pay all obligations and to provide for adequate working capital to finance the gaming operations
The Applicant will be subjected to background investigations and vetting processes including sources of funds to be used in the business as required by Regulation 7 of the Gaming Regulations, 2003. The Applicant is required to provide the necessary cooperation to enable GBT to examine the application appropriately. The Applicant is required to submit the following basic documents necessary for processing of the application:
- Two copies of the Business Plan/Feasibility Study containing the following information:-
- A clear statement of the project
- Applicants’ profile.
- Details of investment costs and how the proposed investment will be financed; name the specific sources of funds and their contacts; terms and conditions of the loans if
- Sources of technology if applicable and gaming
- Projected financial and economic analysis; the financial analysis including projected Annual Balance Sheets and Income Statements for the first four years.
- Market study.
- Expected employment
- Any other information that will useful for the determination of the application
- Duly filled application forms and application fee
- Duly filled Personal Declaration Form for each
- A copy of the company’s Memorandum and Articles of Association, in case no company has been formed, submit a copy of the proposed Memorandum of Association and Articles of
- A certified copy of the Certificate of Company
- Evidence of sufficient finance capital available for the implementation of the
- Proof of the citizenship of every incorporator/subscriber, and every director and senior This includes detailed Curricula Vitae, a photocopy of the first five pages of a passport, a passport-size photograph and historical background.
- Audited Balance Sheets and Income statements of every incorporator/subscriber and every director and senior officer.
- Tax Clearance from the Income Tax office of the country of origin of the applicant and every director and senior
- Statement from two persons (not relatives) vouching for the good moral character and financial responsibility of the incorporators/subscribers and the proposed directors and senior
- Company Board of Directors’ resolution to invest in
MINIMUM INVESTMENT CAPITAL
The minimum Investment Capital for a Local Company is USD 300,000.00. For purposes of this requirement, Local Company means a company incorporated in Tanzania and whose majority shareholder(s) are/ is a citizen(s) of Tanzania whereas the capital requirement for a foreign company is USD 500,000.00.
For purposes of this requirement, Foreign Company means a company incorporated outside Tanzania or a company incorporated in Tanzania but whose majority shareholder(s) is/are not citizens of Tanzania.
TESTING AND CERTIFICATION OF SYSTEMS
Applicants are required to test and obtain certification for their devices, management systems and game software that they will deploy in their gaming activities. These devices, systems and games should be tested against applicable standards.
AFTER REGISTRATION SERVICE
Ardean Law Chamber provides after-registration services including the filing of weekly and monthly returns, preparation of tax payable to the Gaming Board weekly and monthly, and preparation of corporate policy, rules and regulations to support compliance with national laws and policies.