Mozambique Casino Tax Revenue Drops 22.5% in First Half of 2025
Mozambique’s gambling sector continues its downward trajectory as government data reveals casino tax collections plummeted by nearly a quarter during the first six months of 2025. The Ministry of Finance reported revenues of just 75.2 million meticals (€1.0 million) from January to June, compared to 226 million meticals (€3.0 million) collected during the same period in 2024.
Government Projections Fall Short for Second Year
The collected amount represents merely 26.3% of the government’s annual target of 500 million meticals (€6.6 million) for casino revenues in 2025. This projection had anticipated a 29% increase from the 387.7 million meticals (€5.1 million) generated throughout 2024. The shortfall continues a pattern established in 2024 when authorities achieved only 31.4% of their projected 1.235 billion meticals (€16.4 million) in gambling tax revenue.
Multiple factors contribute to the sector’s struggles, though officials have not specified exact causes for the decline. Political protests and civil unrest in major cities like Maputo have disrupted tourist flows that casinos depend upon. The ongoing insurgency in Cabo Delgado province further undermines investor confidence across the country’s entertainment and hospitality sectors.
Natural Disasters and Regulatory Framework Present Additional Challenges
The Ministry of Finance’s Fiscal Risks Report for 2025 identifies climate-related threats as potential economic disruptors. The anticipated La Niña phenomenon could reduce national economic growth from 5.1% to 4.4%, with flooding risks threatening agriculture, fisheries, construction, and trade sectors. These disruptions indirectly impact casino operations through reduced disposable income and restricted movement.
Despite representing only 0.1% of total state revenue, casino tax underperformance reflects broader tourism recovery issues. The sector operates under stringent regulations requiring operators to maintain minimum share capital of $2.7 million and invest at least $5.5 million over five years. Tax rates range from 20% to 35% of gross gaming revenue depending on concession length, plus 50% stamp duty on entrance tickets. Previous government announcements highlighted $36 million in private investment for five new casino and slot machine projects across Maputo, Beira, Tete, Nampula, Matola, and Pemba.
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