South Africa’s National Treasury is considering a major policy shift that would introduce a 20% national tax on online and interactive gambling, responding to mounting social concerns and unprecedented wagering volumes driven by digital betting platforms.
Recent data shows that gambling activity in the country has escalated sharply. A previous IOL report revealed that South Africans placed over R1.1 trillion in online bets during the 2024/25 financial year, driven by the explosive growth of mobile betting apps that have made gambling accessible around the clock.
Figures from the National Gambling Board (NGB) paint an even broader picture, indicating that more than R1.5 trillion was spent across all gambling segments—an increase of roughly R400 billion in just one year.
A Tax That Could Push Total Gambling Levies Near 30%
Details published in a new Treasury discussion paper outline that the proposed national tax would apply on top of existing provincial gambling duties, potentially pushing the effective tax burden on online operators and bettors to between 26% and 29%.
According to Treasury, “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 document estimates that the levy could deliver more than R10 billion in additional revenue for the national fiscus at current market levels, although government stresses that revenue generation is not the primary goal.
Instead, the proposal is framed as a public protection measure aimed at reducing problem gambling, addiction, and associated social harm:
“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.”
An Outdated Legal Landscape
Legal experts say the move highlights deeper structural issues in South Africa’s gambling laws. Zamankwali Njobe, law lecturer and PhD candidate at UKZN, notes that the country’s regulatory framework has failed to keep pace with technological change.
She explains that:
- South Africa’s legislation is still anchored in the National Gambling Act of 2004, drafted before smartphones existed
- Attempts at reform through the 2008 National Gambling Amendment Act have been stalled in Parliament for more than a decade
- The result is a regulatory vacuum, where licensed domestic operators face strict rules while offshore platforms continue to attract South African users with little oversight
What Happens Next?
The proposal is still in its consultation phase, and Treasury is expected to gather stakeholder input before any legislative process begins.
If adopted, the tax would represent the most significant overhaul of South Africa’s gambling policy in nearly twenty years—and could reshape the economics of online wagering in a market where digital betting has become deeply embedded in everyday behaviour.
