Calls for National Gambling Tax gain momentum as SA confronts betting addiction crisis

A growing chorus of political voices is backing the introduction of a national online gambling tax, arguing that South Africa’s exploding betting industry must contribute more to the fiscus while stronger regulations are put in place to curb addiction.

Rise Mzansi chief organiser Makashule Gana on Monday argued that gambling in South Africa has shifted from a leisure activity to what he described as a socio-economic crisis.

“People are no longer gambling for entertainment,” Gana said during an interview with Kwena Moabelo on Power FM. “They are gambling to escape unemployment, to escape poverty. But the house always wins.”

His remarks come as the National Treasury weighs introducing a 20% national levy on online betting and future interactive gambling activities.

The proposed tax would apply to GGR and be imposed in addition to existing provincial gambling taxes, potentially lifting the combined effective tax burden on operators to between 26% and 29%.

Gana has urged Finance Minister Enoch Godongwana to use the National Budget Review on Wednesday to formally introduce the levy, positioning it as a fiscally and socially responsible alternative to broader tax hikes.

With limited room to raise VAT or personal income tax without intensifying pressure on households, Gana argued that a gambling levy may offer a politically palatable source of additional revenue.

"Because he cannot raise tax and he must close that gap around the personal income tax that was not adjusted for inflation last year, the only new thing that he can introduce in this budget is a national online gambling tax," Gana said.

As the window for public comments closes on Friday, Rise Mzansi on Monday filed its submission to Treasury’s discussion document the proposed National Gambling Tax, arguing that "no country has ever gambled itself to prosperity".

The scale of the industry has sharpened the urgency of the debate. According to the latest figures from the National Gambling Board, total gambling turnover surged to R1.5 trillion in 2024/25, a dramatic jump from R1.43trln the previous year.

Betting accounted for 75% of all wagering activity, driven overwhelmingly by online platforms. Of the R51.97 billion in betting GGR, 85.5% originated from online betting.

Treasury has warned that the current fragmented provincial tax regime — where rates range between 6% and 15% depending on the product — risks creating a “race to the bottom” as operators gravitate toward provinces with the lowest tax burdens.

A uniform national levy, Treasury's discussion paper argues, would stabilise the tax base while supporting stronger regulatory oversight.

At current revenue levels, the proposed levy could generate more than R10 billion annually. However, Treasury has emphasised that revenue is not the primary objective. Instead, it frames the intervention as part of a broader harm-reduction strategy.

Gana has echoed that sentiment, describing gambling addiction as a “mental health issue” with growing social costs. He cited rising reports of indebtedness, family distress and even suicidal ideation among problem gamblers.

One of his central proposals is the introduction of “soft-lock” mechanisms to limit excessive betting. Under this model, operators would be required to verify customers’ income and prevent them from depositing more than they earn. Players who incur rapid losses could be automatically locked out for a cooling-off period to reduce impulsive “chasing” of losses.

“You must know how much your customer earns. And then when you deposit money that's more than their salary, you don't allow them to play. You keep their money,” Gana said.

He also advocated banning gambling via credit cards and overdraft facilities, arguing that wagering borrowed money accelerates financial harm.

“If you gamble on overdraft or credit card, you are gambling money you don’t have,” he said.

Another reform under discussion is the creation of a centralised national database of gamblers, accessible to all licensed operators. The system would track spending across platforms and enforce monthly deposit limits, preventing users from circumventing restrictions by moving between sites.

Licensing reform is also high on the agenda. South Africa’s legislation allows for both national and provincial gambling licences, but in practice, many online operators hold provincial licences while operating nationwide. Gana argues that all online operators should hold national licences approved with the concurrence of a functional national gambling authority.

Gana further called for an immediate crackdown on unlicensed offshore platforms operating from jurisdictions such as Malta and Curaçao but servicing South African players.

Industry stakeholders are expected to resist aspects of the proposals, particularly around stricter affordability checks and deposit limits. Some warn that overregulation could drive consumers toward unlicensed operators.

Beyond taxation and licensing, Gana is pushing for a greater portion of gambling revenue to be ring-fenced for social infrastructure, including rehabilitation programmes and public awareness campaigns. He noted that while operators spend more than R2bn annually on advertising and marketing, funding for responsible gambling initiatives remains comparatively modest.

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