South Africa’s proposed 20% online gambling tax triggers fierce backlash from Sun International and SAROGA
Industry leaders warn the levy could destabilise the regulated market and push players to offshore platforms.
South Africa.- A proposed 20 per cent national online betting tax has sparked strong opposition from the South African Responsible Online Gambling Association (SAROGA) and hospitality and gaming group Sun International. They argue the measure could destabilise the regulated gambling sector and push players toward offshore sites.
The National Treasury’s plan, announced days ago on November 25, seeks to introduce a 20 per cent national levy on gross gambling revenue (GGR) from online betting and any future interactive gambling activities. This would be imposed in addition to existing provincial gambling taxes, potentially lifting the combined tax burden on operators to between 26 per cent and 29 per cent.
Treasury argues that the rapid expansion of online gambling, now available “anywhere, at any time”, has outpaced South Africa’s regulatory framework, creating gaps that increase the risk of problem gambling and related social costs. According to the National Gambling Board, online betting now drives around 75 per cent of all wagering in the country, highlighting the scale of the market and regulatory challenges.
SAROGA’s Wayne Lurie said the National Treasury’s proposal for a new 20-percent national tax on online gambling is “flawed”, according to the Bulletin. The organisation argues the government wants to tax online gambling even though there is still no proper law governing it.
Lurie said: “The proposal risks legitimising illegal online gambling by taxing an activity that is still unlawful, while offering no guarantee that the new revenue will support harm-reduction efforts.”
Sun International CEO Ulrik Bengtsson warned that the tax would destabilise the legal gambling industry. “It is a great pity that Treasury did not consult with the industry or relevant regulators as adding additional taxes to gambling will make our industry one of the highest taxed gambling industries in the world,” said Bengtsson, according to IOL.
He added: “This will be over and above the VAT charge that only South Africa applies to gambling. Our offering is not a service where the price can simply be increased and passed back onto the customer. We are forced to absorb VAT charges so additional taxes on gambling will effectively destabilise the legal gambling industry.”
Taxes could drive players offshore, warns Sun International
Bengtsson also highlighted Sun International’s wider economic footprint. According to the company, it employs 7,000 people, invests R1.9bn (€92.5m) in wages and contributed nearly R400m (€19.5m) in PAYE during 2024. The group also invested R80m (€3.9m) in skills development and R28.3m (€1.38m) in corporate social initiatives, including R18m (€880k) in education. Sunbet, the group’s online platform, reportedly generated R65 m (€3.16m) in gaming taxes during the first half of 2025.
He warned that high taxes would drive players to offshore platforms, which do not offer the same consumer protection or contribute to local employment. “Any notion that adding additional taxes will curb gambling is wrong. Increased taxes will only harm the local industry which makes an enormous contribution to South Africa, but it will not touch the offshore operators as their operations fall outside of South Africa’s regulations,” he said.
SAROGA and Sun International are urging Treasury to revisit the proposal and work with industry stakeholders to create a regulatory framework that supports both consumer protection and the viability of the legal gambling industry.
The regulated online sector faces competition from more than 2,000 offshore sites. According to Sun International, R55.1bn (€2.68bn) flowed out of South Africa in 2023/24 to offshore platforms, representing about 62 per cent of online gross gaming revenue.
