South Africa extends consultation on proposed online gambling tax
The Draft National Online Gambling Tax Discussion Paper proposes a 20 per cent tax on gross gambling revenue (GGR).
South Africa.- South Africa’s National Treasury has announced an extension of the public consultation period on its proposed national online gambling tax from January 30 to February 27, 2026, providing stakeholders and members of the public with additional time to review and submit comments on the draft policy.
First published on November 25, 2025, the Draft National Online Gambling Tax Discussion Paper proposes a 20 per cent tax on gross gambling revenue (GGR) generated from online and interactive betting. The Treasury says the measure is intended to address the rapid growth of digital betting in South Africa and the social problems associated with gambling, although it would be levied in addition to existing provincial taxes.
The proposal comes amid significant growth in the online gambling market. Government data cited in the discussion paper shows total turnover in South Africa’s gambling sector reached about R1.5trn (€78bn) in the 2024/25 financial year, a 31.3 per cent increase from the previous year, with online betting accounting for around three-quarters of this activity.
Provincial gambling taxes currently range between 6 per cent and 9 per cent, meaning the effective tax burden on online operators could rise to nearly 29 per cent if the national levy is adopted.
Treasury officials say the tax is not solely a revenue-raising measure, noting that while it could generate an estimated R10bn (€524.5m) annually, a primary objective is to discourage problem and pathological gambling and their associated social impacts.
Reactions to the proposal have been mixed. Some lawmakers, including Rise Mzansi MP Makashule Gana, have supported the tax as a necessary intervention to mitigate gambling-related harm, while others have warned that the measure could be legally and economically problematic. Critics, including the Free Market Foundation, argue that interactive online gambling is technically unregulated under outdated 2008 legislation and have questioned the legality of imposing a national tax on such activity.
Industry groups have called for more time to assess the discussion paper’s implications, prompting the extension of the consultation period. Comments on the proposal are being accepted via email at [email protected].
