South Africa's Betting Revenue Rose 390% in Four Years. Now a Tax Is Coming

South Africans now bet at a scale few predicted five years ago. Betting revenue has almost quintupled, and online access is a big reason why. As a result, Treasury wants a share. Here is what the numbers show and what happens next.

What the 390% figure measures

Treasury's discussion paper tracks betting GGR, the money operators keep after paying out winnings. It rose from about R10.6 billion in 2020/21 to R51.97 billion in 2024/25. That is a 390% increase.

The Solidarity Research Institute (SRI) used the same figure in its October report. However, the official data covers all betting, not only online play. For comparison, casino revenue grew just 83% over the same period.

A R1.5 trillion market

According to the SRI, South Africans wagered about R1.5 trillion in 2024/25. Nearly three-quarters of that happened online. That is not what players lost, because the same money can be bet many times. After winnings, operators kept R74.5 billion in GGR, up 25.6% on the year before.

What the proposed tax looks like

Treasury published its discussion paper in November 2025. It proposes a 20% national tax on GGR from online betting, on top of provincial taxes. Treasury says the combined rate would be 26% to 29%. It expects to raise more than R10 billion a year.

However, Treasury says revenue is not the main aim. It says the tax is meant to:

"discourage problem and pathological gambling and their ill effects."

What was announced this week

Public comment closed on 27 February 2026. On 21 October, finance minister Enoch Godongwana used his Medium Term Budget Policy Statement to set the next step. Treasury will outline the final design in the Budget Speech in February 2027.

He added that consultations are ongoing. They cover the tax design, its links to current rules and the effect on provinces. Therefore, nothing is final yet.

 The legal wrinkle

The National Gambling Board says interactive online gambling is illegal, except for licensed online sports betting. Licensed bookmakers argue that they do not offer interactive gambling. The regulator disagrees with some of their casino-style products.

Treasury admits that interactive gambling is still unlawful, yet it proposes taxing the revenue. Industry body SAROGA says this would pull illegal operators into the tax net. Treasury has also warned that a badly set tax could push players towards illegal sites.

Why the growth worries critics

The SRI report links the boom to mobile phones and heavy advertising. Its author, Theuns du Buisson, warns of serious financial harm. Early findings suggest some gamblers take out risky loans or use social grants to play.

The timing is sensitive. The regulator warned in August after unemployment rose to 33.6%. Retail chiefs, including Shoprite's Pieter Engelbrecht, say gambling pulls money from household essentials.

Academics at the University of Cape Town back the tax. However, they say it needs stronger compliance to raise the expected revenue.

What happens next

Nothing changes for players yet. Licensed online sports betting remains legal, and online casino games remain prohibited. The next clear date is the February 2027 Budget. After that, Treasury must still turn its design into law.

Until then, the 390% figure will keep driving the debate. It also shows why the government wants a bigger share.