The Mozambican government expects to collect 500 million meticais ( about $7.5 million) in taxes from casinos and gambling activities in 2025.
This target represents a 29% increase on last year, according to official data compiled by Lusa on Thursday.
According to the proposed Economic and Social Plan and State Budget (PESOE) 2025, the expected revenues from the Special Tax on Gambling have been outlined.
The proposal was approved on Saturday by members of the Mozambique Liberation Front (Frelimo, in power) and Podemos (the largest opposition party).
These expected revenues are compared with the 387.7 million meticais ($5.8 million) collected last year, and 370.3 million meticais ($5.5 million) in 2023.
The government has forecast revenues of almost 1.235 billion meticais ($18.5 million) in 2024. It has achieved only about a third (31.4%) of this target, which it also failed to meet in 2023.
According to the same document, the state’s projected tax revenues for this year amount to 385.872 billion meticais ($5.94 billion). This marks an increase of 10% over 2024.
Five “private sector-driven projects” in this sector generated investments of $36 million. This was announced on 8 August by the then President of the Republic, Filipe Nyusi.
These projects are “of particular importance in the tourism chain”, such as casino and slot machine concessions in Maputo, Beira, Tete, Nampula, Matola, and Pemba.
This move mirrors regional trends, such as South Africa’s regulated gambling market and Kenya’s expanding betting sector. Both have seen gambling used as a tool for tourism and revenue enhancement.
According to information from the National Directorate of Games of Chance or Gambling of Mozambique, the award of concessions for casinos in the country requires the concessionaire’s commercial company to have a share capital of at least the equivalent of almost $2.7 million.
It must also make an investment of at least $5.5 million within five years.
For the effective operation of games of chance, concessionaires must pay the Mozambican state a Special Tax on Gambling.
This is levied on gross gambling revenue: 20% on concessions up to 14 years, 25% on concessions up to 19 years, 30% for concessions from 20 to 24 years, and 35% for concessions from 25 to 30 years.
“Concessionaires must also pay Stamp Duty, corresponding to 50% of the price of casino admission tickets,” according to the National Directorate of Games of Chance or Gambling.
However, it adds that these “are exempt from the payment of other taxes levied on gambling profits,” as well as import duties on equipment and materials imported exclusively for casino operations.
