South African Treasury Department Proposes 20% Online Gambling Tax

South Africa’s National Treasury has released a draft proposal that would introduce a 20% national tax on online gambling revenue. The proposal forms part of a broader review of how online gambling is regulated and taxed in the country, as authorities try to keep up with the rapid growth of online betting in South Africa. Treasury has opened the proposal to the public for comment. They say they aim to prevent social harm linked to online gambling while increasing government revenue. If implemented, the tax would be in addition to existing provincial gambling taxes.

What the Treasury is proposing

According to the draft discussion paper, the National Treasury is considering a 20% tax on gross gambling revenue generated from online gambling. The proposal is intended to create a nationally consistent approach to taxing online gambling, which currently falls under the provincial departments.
Treasury says the cause is the rapid growth of online gambling, particularly online sports betting, as the main reason behind the proposal. Officials say the tax could help address regulatory gaps while ensuring the state receives revenue from this fast growing sector.

The proposed online gambling tax is intended to address gaps in the current framework and respond to the rapid growth of online gambling.
— South Africa’s National Treasury

What it could mean for players

While the proposed tax would be levied on operators rather than directly on players, there are concerns about how increased costs could land up costing the players in the long run. Higher operating costs may affect odds, casino bonuses and promotions, depending on how operators respond.
Treasury has stated that one goal of the proposal is to reduce gambling-related harm. However, critics argue that excessive taxation could push players toward unregulated offshore gambling sites that are not subject to South African consumer protection rules.

Public consultation and next steps

National Treasury has invited public submissions on the draft proposal as part of its consultation process. Feedback from industry bodies, civil society organisations, and the public will be considered before any final decision is made. At this stage, it is just a proposal and not a confirmed policy change. Any new tax would need to progress through further review and legislative processes before coming into effect.

Why this matters now

Online gambling continues to grow rapidly in South Africa, making taxation and regulation an increasingly important policy issue. The Treasury’s proposal shows a more active approach to addressing online gambling at a national level.
For players and operators, the consultation period will be very important in terms of shaping how online gambling will be regulated and taxed in the years ahead.