South Africa’s National Treasury has unveiled a proposal that could significantly alter the country’s online gambling landscape. The government is seeking public feedback on the draft of a 20% national tax on gross gambling revenue (GGR) from online betting and interactive gambling. With the online gambling sector booming, this tax is part of the government’s broader plan to address the rise in problem gambling, while also increasing tax revenues.
The National Tax and Its Objectives
In the discussion paper, the Treasury has highlighted the dual goals of the proposed tax: generating additional revenue for the government and curbing the social issues arising from the rise in online gambling. The Treasury emphasized that “recreational gamblers do not place any external costs on society,” but “problem and pathological gambling impose a cost,” justifying the regulation. The goal of this tax, it stated, is to tackle those negative social consequences, which have been growing at an alarming rate with the surge in online gambling.
This 20% national levy would be in addition to the existing provincial gambling taxes, bringing the total tax burden on online gambling to between 26% and 29%. According to Treasury projections, the tax could generate upwards of R10 billion annually by 2029, helping to offset the societal costs linked to gambling addiction and other related issues.
The Impact of Online Gambling’s Growth
South Africa has witnessed significant changes in its gambling landscape, largely due to the rapid rise in online gambling. Technological advancements and widespread internet access, especially after the COVID-19 pandemic, have made gambling more accessible than ever before. The National Treasury noted that “gambling is now easily available online and accessible almost anywhere and at any time.”
The National Gambling Board (NGB) has also reported impressive growth in the gambling sector, with total turnover in 2024/2025 reaching an astonishing R1.5 trillion, up 31.3% from the previous year. Online sports betting and the National Lottery have proven especially popular, accounting for a large share of this growth. However, the rapid expansion of the sector has not come without its challenges.
The NGB revealed that illegal gambling now makes up around 62% of the country’s total gambling activity, with many unlicensed offshore operators skirting local laws and evading taxes. This is proving to be a significant challenge for regulators trying to keep up with the cross-border nature of online gambling.
Outdated Gambling Legislation and the Need for Reform
South Africa’s gambling laws, which stem from the National Gambling Act of 2004, have struggled to keep up with the modern, tech-driven gambling world. While some provinces, like the Western Cape and Mpumalanga, have adapted by offering online gambling licenses, many other regions have been unable to regulate this growing sector effectively.
To address these gaps and create a more unified regulatory environment, the Treasury’s proposed national tax aims to simplify and standardize the tax structure. This would prevent individual provinces from undercutting each other with lower tax rates to attract online operators. By consolidating the tax burden at the national level, the government hopes to better address the challenges posed by the booming online gambling market.
The Treasury has also looked at international best practices, noting that many countries with large online gambling markets, including several European nations and Australia, have implemented similar or even higher tax rates. These countries often use the tax revenue to fund addiction treatment programs and implement stricter gambling regulations. South Africa plans to follow suit, using the revenue from the national tax to fund programs aimed at mitigating the harms caused by problem gambling.
However, the Treasury has warned that a tax rate set too high could drive gamblers toward illegal, unregulated platforms, which would only worsen the social issues the tax is intended to address.
Public Consultation Process
The Treasury has made the draft proposal available for public comment, encouraging stakeholders to submit their feedback. The consultation period will end on January 30, 2026, and the government will consider these views before moving forward with the proposed tax. This public consultation is crucial in ensuring that the tax structure is fair and that its benefits are maximized while minimizing the negative impact on consumers.
Source:
South Africa proposes 20% national tax on online gambling amid growth, news.worldcasinodirectory.com, November 27, 2025
