Storm brewing over South Africa’s new 20% tax
South Africa is considering a 20% national tax on gross gambling revenue (GGR) amid significant growth in online betting, with public responses incredibly varied.
The new 20% levy, which targets online, interactive, and sports betting, aims to generate over R10 billion annually for the state while also addressing the social risks associated with growing gambling addictions.
In response to questions from RISE Mzansi MP Makashule Gana, Finance Minister Enoch Godongwana said that there are divergent views on the appropriate tax rate.
The Minister said that the state received submissions from individuals, industry stakeholders, civil society, political organisations, and other government entities.
He said that several themes have emerged, including differences over the tax rate, ranging from too low to too high.
While there are concerns over the social and public‑health impacts of online gambling, there are also fears that higher tax burdens could expand the illegal/offshore market.
He added that several submissions raise legal and constitutional concerns regarding regulatory sequencing and provincial authority.
There are also concerns about enforcement, administrative feasibility, and fiscal implications for both the national and provincial spheres, as well as suggestions to earmark the revenues from the proposed tax.
Although these themes provide an early indication of areas emerging from the public submissions on the proposal, a full and final assessment will only be possible when all submissions have been processed.
While the public comment period closed on 27 February 2026, the Minister said that the National Treasury will convene a stakeholder workshop with those who submitted comments.
After that, a revised proposal is expected to be incorporated into draft legislation to be published in 2026 for further consultation.
The Minister said that tax proposals of this nature are usually made in the February Budget, meaning that any proposals from this process would likely be formally announced in the 2027 National Budget.
Proliferation of gambling in South Africa
Gana has been a noted critic of the proliferation of gambling services in South Africa, which disproportionately affects the poorest.
His political party recently called on the Minister of Trade, Industry and Competition, Parks Tau, and Provincial Licensing Authorities to place an immediate moratorium on the licensing of online bookmakers.
This was after Tau revealed in a separate written parliamentary question to Gana that South Africa now has over 400 registered bookmakers.
This figure is double that of Australia, which has 200, and over five times that of Brazil, which has 81. RISE Mzansi said that South Africa lacks stringent licensing requirements.
The number of registered bookmakers has also skyrocketed this decade, rising from 288 in 2020 to 402 in 2025, aligning with the post-pandemic boom in online betting.
“The growth in registered bookmakers, the majority of which very likely operate online, far exceeds the mere 10% overall increase in gambling licenses in South Africa over the same time period,” said RISE.
Mpumalanga, the Eastern Cape, North West, and the Free State now also have more than twice as many registered bookmakers as five years ago.
The party said this is a major concern, especially as the country lacks a national license for online gambling, and provincial authorities are ill-equipped to handle nationwide operations.
“It is not hard to see that we have too many bookmakers and that the growth of bookmakers, particularly those offering online betting services, is out of control,” the party said.
“There are several vital interventions that the Minister must adopt to address this situation, including mandating that all online bookmakers must be licensed nationally.”
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