Treasury targets SA’s online betting boom with major tax shake-up
The National Treasury is moving to introduce a 20% tax on all online and interactive gambling in South Africa
Image: IOL Graphics
The National Treasury is moving to introduce a 20% tax on all online and interactive gambling in South Africa, a move aimed at curbing problem gambling while boosting public revenue.
IOL previously reported that South Africans wagered R1.1 trillion on betting activities during the 2024/25 financial year, fuelled largely by the rise of mobile betting apps that have turned gambling into a daily habit for millions.
According to the National Gambling Board (NGB), gambling in the country is on the rise, with over R1.5 trillion spent across all gambling activities, a staggering R400 billion increase from the previous year alone.
The proposal was outlined in a discussion paper published on Tuesday, which suggests the tax would be in addition to existing provincial gambling levies, potentially raising the total tax burden on online bettors to nearly 30%.
"Due to the surge in online gambling and its impact on society, it is proposed that a 20 per cent tax is applied on gross gambling revenue from online betting, including interactive gambling, which would be in addition to the currently applied provincial taxes".
"The national gambling tax would, however, be in addition to the provincial tax rates and would lead to a tax rate of between 26 per cent and 29 per cent".
The paper also revealed that the 20% levy could generate over R10 billion in additional revenue for the national government.
"At the current levels of gross gambling revenue, the 20 per cent tax on gambling would translate into over R10 billion in additional revenue for the national government. However, the main objective of the reform would not be to raise further revenue, but rather to discourage problem and pathological gambling and their ill effects".
Zamankwali Njobe, law lecturer and PhD candidate at UKZN, previously said that South Africa’s legal framework for online gambling is outdated and fragmented.
"The country’s laws—rooted in the National Gambling Act of 2004—were written before the rise of smartphones. Attempts to modernise, such as the National Gambling Amendment Act of 2008, have stalled in Parliament for over a decade. The result is a regulatory grey zone: local apps face strict oversight, while unlicensed offshore apps operate freely".
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mthobisi.nozulela@iol.co.za