Mozambique – €7m gambling tax target set for 2025
After falling short of ambitious projections, the government shifts gears with a more grounded forecast, buoyed by tourism-driven casino investments.
Mozambique.- The Mozambique government has revised its gambling tax revenue target for 2025 to €7m. This is up 29 per cent from the €5.4m collected in 2024. The more grounded projection comes after last year’s overly ambitious €17.2m forecast flopped; only 31.4 per cent of that goal was realised by year-end.
This recalibrated estimate features in the newly approved Economic and Social Plan and State Budget (PESOE) for 2025, which passed with support from both the ruling Frelimo Party and opposition group Podemos.
Rejuvenated gambling sector
The €7m target is more than a number – it’s a reflection of a government adjusting its expectations while banking on a rejuvenated gambling sector. After two years of overestimated goals, Mozambique downed its fantasy and looked to more fiscal reality.
Driving the cautious optimism are five high-stakes private sector casino and gaming projects. Backed by a €34m investment, these ventures are scattered across major cities like Maputo, Beira, Tete, Nampula, Matola and Pemba.
The government sees them as key pillars in its push to turn the country into a tourism and gaming hotspot.
Still, it’s not all bright lights and roulette wheels. Concessionaires must meet hefty requirements to enter the market.
According to the National Directorate of Games of Chance, casino operators need a minimum share capital of €2.4m and must invest at least €4.9m over five years.
On top of that, they must cough up a Special Tax on Gambling, applied to gross gaming revenue on a sliding scale:
- 20 per cent for concessions under 14 years
- up to 35 per cent for those lasting 25 to 30 years
Add a Stamp Duty equal to half the price of each casino entry ticket, and the stakes get even higher. But there’s a silver lining: gambling operators are exempt from profit taxes and any gaming-specific imports come duty-free – a clear incentive for foreign and local investors alike.
With a new forecast and projects in play, Mozambique’s gambling industry may finally be dealt a winning hand.
