New tax on the cards for South Africa
The National Treasury has extended the deadline for public comment on a proposed online gambling tax amid a growing epidemic of gambling in the country.
While the addiction risk regarding gambling is well known, the recent rise of online gambling has meant that it is accessible almost anywhere, at any time, which allows the addiction to grow.
National Treasury also noted that online gambling has been normalised via new commercial associations with sport and cultural activities that are now heavily promoted by gambling companies.
According to statistics from the National Gambling Board, R1.5 trillion was wagered in the South African gambling industry in 2024/25, representing 31.3% year-on-year growth.
Most of the turnover, around 75%, came from betting activities, generating R1.126 trillion. The next-largest share was 19.5% for casinos.
Over the past five financial years, all gambling modes experienced growth. However, betting experienced a massive 390% increase in gross gambling revenue (turnover minus winnings) to R51.97 billion in 2024/2025.
Due to the surge in online gambling and its impact on society, the National Treasury proposed that a 20% tax be applied on gross gambling revenue from online betting, including interactive gambling.
This would be in addition to the provincial taxes already applied. Currently, 11 jurisdictions charge a 20% tax on gross gambling revenue, with an additional 16 charging a higher rate.
The national gambling tax, however, would be in addition to provincial tax rates and would result in a tax rate of between 26% and 29%.
At current levels of gross gambling revenue, the 20% tax on gambling would yield over R10 billion in additional revenue for the national government.
“However, 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,” said the National Treasury.
The new tax would effectively be a “sin” tax on gambling, much like the additional taxes the National Treasury imposes on alcohol and tobacco products.
The deadline for public comments on the proposed new tax has now been moved from 30 January 2026 to 27 February 2026. Comments can be submitted to [email protected].
Mixed views on regulation
The new tax has been welcomed by Rise Mzansi MP Makashule Gana, who has been a prominent critic of South Africa’s gambling addiction.
Gana said that the new tax rightfully proposes significant changes to the tax regime in the gambling industry, an industry that he said has continued to harm and continues to damage lives and livelihoods.
Other organisations have been less supportive of the proposals, including the Free Market Foundation, which said that the move is unconstitutional.
The Free Market Foundation stated that interactive gambling is technically illegal in South Africa, as the Gambling Amendment Act of 2008 was never promulgated.
“Therefore, the proposal of a national tax on it constitutes an inversion of the basic rule of law logic,” said the foundation.
The foundation said that, instead of first addressing whether a regulated interactive market is desirable, Treasury is quietly opting to chase easy revenue. However, Gana questioned the proposal’s naysayers.
“The proposal for tighter regulations and an online gambling tax has galvanised operators and their think tanks, who have made absurd claims that these necessary and urgent interventions are unconstitutional,” said Gana.
“These organisations and people do not care about the lives and livelihoods being negatively affected by this public health crisis. Gambling reforms are an inevitable outcome.”
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