South Africa’s proposed 20% online gambling tax awaits February 2027 update

Consultations continue on how the proposed tax would interact with provincial regulation and affect South Africa’s regulated gambling market.

Key takeaways:

• South Africa expects to announce the final details of its proposed National Online Gambling Tax in the February 2027 Budget.
• National Treasury proposed a 20 per cent national tax on gross gambling revenue from online betting, including interactive gambling, in November 2025.
• Treasury estimated that the proposal could generate more than R10bn in additional annual revenue for the national government.
• Treasury has framed the proposal primarily as a measure to address online gambling growth and associated harm.
• Consultations continue on the proposal’s relationship with provincial regulation and its implications for the regulated market. The proposed 20 per cent rate remains unconfirmed.

South Africa.- South Africa’s proposed National Online Gambling Tax could introduce a 20 per cent national levy on gross gambling revenue (GGR) from online betting, including interactive gambling. Finance Minister Enoch Godongwana confirmed on October 21, 2026, that the final details are expected to be announced in the February 2027 Budget. First proposed by National Treasury in November 2025, the tax would apply in addition to existing provincial gambling taxes. Questions remain over how the proposal could affect licensed operators and provincial gambling regulation.

In his Medium-Term Budget Policy Statement, Godongwana said: “Last year, National Treasury published a discussion paper proposing a National Online Gambling Tax. The submissions received generally recognised the need to address the growth of online gambling and its associated harm. Consultations are ongoing on the proposed tax design, its linkages to the existing regulatory framework, and the implications for provinces and the currently regulated market. An announcement of the final design will be made in the February 2027 Budget.”

The November 2025 discussion paper also outlined how the proposed 20 per cent tax would apply to online betting, including interactive gambling. It states that existing provincial taxes on online betting average approximately 6–7 per cent of winning bets or net gaming revenue, depending on the province. Treasury estimated that the proposed national tax could generate more than R10bn (US$610m) in additional annual revenue for the national government.

Treasury framed the proposed tax primarily as a way to address gambling-related harm rather than simply raise revenue. In a report published on October 21, 2026, Daily Investor quoted Treasury’s Christopher Axelson describing the levy as closer to a “sin tax”. He said Treasury would welcome a reduction in online gambling, even if it resulted in lower tax revenue. Axelson explained that, unlike taxes on alcohol or tobacco that are levied per drink or cigarette, the proposed gambling tax would apply to companies.

The proposal has faced industry and legal opposition. In January 2026, critics questioned its constitutionality and potential impact on provincial regulatory authority. Industry stakeholders, including Sun International and South African Responsible Online Gambling Association (SAROGA), raised concerns that the proposed 20 per cent levy could disadvantage licensed operators and push players towards unregulated offshore platforms. These remain stakeholder concerns rather than established outcomes. Treasury subsequently extended the public-comment deadline from January 30 to February 27, 2026.

Although the public-comment period has closed, Godongwana’s October statement confirmed that consultations on the tax’s final design, its relationship with the existing regulatory framework and its implications for provinces and the regulated market are continuing. The proposed 20 per cent rate has not been confirmed as final. The February 2027 Budget is expected to clarify the tax’s details; the minister’s statement did not specify when it would take effect.

Frequently asked questions (FAQs)

• What is South Africa’s proposed online gambling tax? It is a proposed national tax on gross gambling revenue from online betting, including interactive gambling, in addition to existing provincial taxes.
• How much is South Africa’s proposed online gambling tax? National Treasury proposed a 20 per cent tax on gross gambling revenue. The rate has not been confirmed as final.
• When will South Africa announce the final online gambling tax details? Finance Minister Enoch Godongwana said the final details would be announced in the February 2027 Budget.
• Why is South Africa proposing an online gambling tax? Treasury has framed the proposal primarily as a way to address online gambling growth and associated harm, rather than simply to raise revenue.