Gauteng is preparing changes to its gambling laws to regulate online betting and recapture tax revenue currently going to other provinces. A draft amendment is being developed to create a clear provincial framework for digital gambling. Many people who gamble online in South Africa live in Gauteng, yet licences and tax benefits are often issued and collected in other provinces.

Although Gauteng contributes about 35% of South Africa’s GDP, it no longer leads the country in gambling revenue. Provinces such as the Western Cape and Mpumalanga have overtaken it, partly because major online betting platforms hold licences there. This shift has raised concerns among provincial officials about lost revenue and the fairness of the current licensing system.

Under South Africa’s framework, provinces may issue licenses for bookmakers and other gambling activities. Online betting on sports and horse racing is permitted through licensed bookmakers, while interactive online casino gambling remains prohibited under national policy. Despite that prohibition, online gambling has expanded rapidly, driven mainly by mobile betting platforms and aggressive marketing by operators.

In the year to March 2024, South Africans wagered more than R1.14 trillion (€59.9bn). Gross gambling revenue reached R59.3 billion (€3.1bn), with betting accounting for about 60.5% of the total. Much of this activity occurs online, offered by operators licensed in provinces such as the Western Cape and Mpumalanga, allowing them to serve customers nationwide.

The current structure lets gambling happen nationally while tax revenue is collected by the provinces that issue licenses. Provincial governments generate important revenue from gambling taxes, supplementing other sources such as vehicle and liquor licenses. Gauteng’s proposed changes aim to ensure the province captures a fair share of revenue from online gambling by its residents.

Officials also say the amendment is part of broader efforts to curb illegal gambling, strengthen consumer protections, and bring digital betting into a regulated framework that can enforce age verification, anti-money-laundering checks, and responsible-gambling measures. At the national level, comprehensive legislation for remote gambling including proposals such as the Remote Gambling Bill has been under discussion for years.

That bill, if enacted, could centralize regulation and close loopholes that allow license shopping between provinces. For now, however, provinces retain significant control, and Gauteng’s move reflects growing provincial efforts to adapt to the rapid rise of online betting and to safeguard local tax bases and public-policy objectives.