More industry leaders join the fight against South Africa’s proposed 20% online gambling tax
Legal expert backed by associations warn tax could shrink regulated market and push players offshore.
South Africa.- Resistance to South Africa’s proposed 20 per cent online gambling tax is escalating, with legal heavyweight Garron Whitesman and the South African Bookmakers’ Association (SABA) taking a leading stand. This follows previous opposition from Sun International and the South African Responsible Online Gambling Association (SAROGA), highlighting growing industry concern.
The proposed 20 per cent national levy, outlined in National Treasury’s discussion paper released on November 25, would apply to gross gambling revenue from online betting and future interactive gambling activities.
Whitesman, who is an internationally recognised gambling attorney and founder of Whitesmans Attorneys, said: “This is one hell of a fight. National Treasury has picked the fight.”
Whitesman warns the tax could push players offshore. “The extra tax would decrease the offerings in a regulated market that are available to players and push those players to the black market. And we’ve seen it all over the world, where gambling taxes have gone up materially.”
Sean Coleman, CEO of SABA, emphasised that taxation must be grounded in legal certainty. He said: “Taxes presuppose legality, and legality demands precision and certainty. The proper regulation of the online gaming industry depends squarely on this. Only once this has been achieved, should taxes follow.”
Coleman called on Treasury to focus on refining a clear framework for interactive gambling and online betting, rather than imposing heavy levies prematurely.
The tax would be imposed in addition to existing provincial gambling taxes, potentially lifting the combined tax burden on operators to between 26 and 29 per cent.
Treasury says the measure is designed to curb problem gambling, citing the rapid expansion of online betting, which is now accessible “anywhere, at any time” and reportedly drives a majority of wagering in the country.
Tax is flawed
Sun International CEO Ulrik Bengtsson warned that higher taxes would compromise player safety: “The major consequence will be that customers will receive less protection, which directly contradicts the proposed regulatory intent. Offshore operators do not offer the same level of consumer safety; they pay zero taxes and invest nothing in this country.”
SAROGA similarly criticised the levy as “flawed” cautioning that it risks legitimising illegal gambling while a proper national framework remains unresolved.
From Whitesman’s stark warning that this is “one hell of a fight”, to Coleman’s insistence on legal clarity and Bengtsson’s consumer-protection concerns, industry leaders are sending a unified message: rushed, punitive taxation could shrink the regulated market, push players offshore, and leave South African consumers at risk.
