The National Treasury has extended the deadline for public comments on a proposed online gambling tax, amid rising concerns over a gambling epidemic in South Africa. While the risks associated with gambling addiction are well-known, the recent surge in online gambling has made it more accessible, allowing addiction to spread rapidly.
The Treasury has noted that online gambling has become normalized through new commercial partnerships with sports and cultural activities that are heavily promoted by gambling companies. According to statistics from the National Gambling Board, R1.5 trillion was wagered in the South African gambling industry during 2024/25, representing a 31.3% year-on-year growth. About 75% of this turnover came from betting activities, generating R1.126 trillion, while casinos accounted for 19.5%.
Over the past five financial years, all forms of gambling have experienced growth. Notably, betting has seen a staggering 390% increase in gross gambling revenue (turnover minus winnings), reaching R51.97 billion for 2024/2025. In response to the surge in online gambling and its societal impacts, the National Treasury has proposed a 20% tax on gross gambling revenue from online betting, including interactive gambling.
This would be in addition to existing provincial taxes. Currently, 11 jurisdictions impose a 20% tax on gross gambling revenue, with 16 others charging a higher rate. The proposed national gambling tax would raise the total tax burden to between 26% and 29%. Based on current levels of gross gambling revenue, this tax could generate over R10 billion in additional revenue for the national government.
However, officials emphasize that the primary aim of this reform is not just to raise revenue but to discourage problem and pathological gambling and its negative effects. The new tax would act as a “sin” tax on gambling, similar to taxes levied on alcohol and tobacco products. Makashule Gana, a Member of Parliament for Rise Mzansi, has welcomed the proposed tax, highlighting its potential to bring significant changes to the gambling industry’s tax regime.
He noted that the industry has caused considerable harm and continues to damage lives and livelihoods. Conversely, some organizations, including the Free Market Foundation, have opposed the proposals, arguing that they are unconstitutional. The Foundation claims that interactive gambling remains technically illegal in South Africa, as the Gambling Amendment Act of 2008 was never enacted. They argue that proposing a national tax on an illegal activity contradicts basic legal principles.
In response to these critics, Gana questioned their motives. “The push for tighter regulations and an online gambling tax has energized operators and their advocates, leading to claims that these essential interventions are unconstitutional,” he stated. “These organizations do not prioritize the lives and livelihoods negatively affected by this public health crisis. Gambling reforms are an inevitable outcome.”
