Mozambique Targets 29% Increase in Casino Tax Revenue for 2025 Amid New Gambling Projects
The Mozambican government anticipates collecting 500 million meticais (€6.9 million) in taxes from casinos and gambling activities in 2025. This target represents a 29% increase compared to the previous year, based on official data compiled by Lusa on Thursday.
As outlined in the proposed Economic and Social Plan and State Budget (PESOE) 2025, which was approved on Saturday by members of the Mozambique Liberation Front (Frelimo, in power) and Podemos (the largest opposition party), expected revenues from the Special Tax on Gambling are compared to the 387.7 million meticais (€5.4 million) collected last year and €370.3 million (€5.1 million) in 2023.
The government has projected revenues of nearly 1.235 billion meticais (€17.2 million) in 2024, but has only achieved about a third (31.4%) of this target, a goal it also failed to meet in 2023.
According to the same document, the state’s estimated tax revenues for this year amount to 385.872 billion meticais (€5.372 billion), representing a 10% increase over 2024.
Five “private sector-driven projects” in the gambling sector generated investments of $36 million (€34 million), announced on August 8 by the then President of the Republic, Filipe Nyusi. These projects are “of particular importance in the tourism chain,” including casino and slot machine concessions in Maputo, Beira, Tete, Nampula, Matola, and Pemba.
Information from the National Directorate of Games of Chance or Gambling of Mozambique states that the awarding of casino concessions requires the concessionaire’s commercial company to have a share capital of at least nearly $2.7 million (€2.4 million) and an investment of at least $5.5 million (€4.9 million) within five years.
For the operational phase of games of chance, concessionaires must pay the Mozambican state a Special Tax on Gambling, levied on gross gambling revenue, with rates of 20% for concessions up to 14 years, 25% for 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 states 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.
