The National Treasury\u2019s plan, announced days ago on November 25, seeks to introduce a 20\u202fper\u202fcent national levy on gross gambling revenue<\/strong> (GGR) from online betting and any future interactive gambling activities. This would be imposed in addition<\/strong> to existing provincial gambling taxes, potentially lifting the combined tax burden on operators to between 26\u202fper\u202fcent and 29\u202fper\u202fcent<\/strong>.<\/p>\n\n\n\n Treasury argues that the rapid expansion<\/strong> of online gambling, now available \u201canywhere, at any time\u201d, has outpaced South Africa\u2019s regulatory framework<\/strong>, creating gaps<\/strong> that increase the risk of problem gambling and related social costs. According to the National Gambling Board, online betting now drives around 75\u202fper\u202fcent<\/strong> of all wagering in the country, highlighting the scale of the market and regulatory challenges.<\/p>\n\n\n\n SAROGA\u2019s Wayne Lurie said the National Treasury\u2019s proposal for a new 20-percent national tax on online gambling is \u201cflawed<\/strong>\u201d, according to the Bulletin. The organisation argues the government wants to tax online gambling even though there is still no proper law governing it.<\/p>\n\n\n\n Lurie said: \u201cThe proposal risks legitimising illegal online gambling by taxing an activity<\/strong> that is still unlawful, while offering no guarantee<\/strong> that the new revenue will support harm-reduction efforts.\u201d<\/p>\n\n\n\n Sun International CEO Ulrik Bengtsson<\/strong> warned that the tax would destabilise<\/strong> the legal<\/strong> gambling industry. \u201cIt is a great pity that Treasury did not consult<\/strong> with the industry or relevant regulators as adding additional taxes to gambling will make our industry one of the highest taxed<\/strong> gambling industries in the world,\u201d said Bengtsson, according to IOL.<\/p>\n\n\n\n He added: \u201cThis will be over and above the VAT<\/strong> 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<\/strong>. We are forced to absorb<\/strong> VAT charges so additional taxes on gambling will effectively destabilise the legal gambling industry.\u201d<\/p>\n\n\n\n Bengtsson also highlighted Sun International\u2019s wider economic footprint<\/strong>. According to the company, it employs 7,000 people, invests R1.9bn<\/strong> (\u20ac92.5m) in wages and contributed nearly R400m (\u20ac19.5m) in PAYE during 2024. The group also invested R80m<\/strong> (\u20ac3.9m) in skills development<\/strong> and R28.3m (\u20ac1.38m) in corporate social initiatives, including R18m (\u20ac880k) in <\/strong>education. Sunbet<\/strong>, the group\u2019s online platform, reportedly generated R65\u202fm (\u20ac3.16m) in gaming taxes during the first half of 2025.<\/p>\n\n\n\n He warned that high taxes would drive players to offshore platforms<\/strong>, which do not offer the same consumer<\/strong> protection or contribute to local employment. \u201cAny notion that adding additional taxes will curb gambling is wrong<\/strong>. Increased taxes will only harm<\/strong> the local industry which makes an enormous contribution<\/strong> to South Africa, but it will not touch the offshore operators as their operations fall outside of South Africa\u2019s regulations,\u201d he said.<\/p>\n\n\n\n SAROGA and Sun International are urging Treasury to revisit<\/strong> the proposal and work with industry stakeholders to create a regulatory framework that supports both consumer protection<\/strong> and the viability of the legal gambling industry.<\/p>\n\n\n\n The regulated online sector faces competition from more than 2,000 offshore sites<\/strong>. According to Sun International, R55.1bn (\u20ac2.68bn) flowed out of South Africa in 2023\/24 to offshore platforms, representing about 62\u202fper\u202fcent<\/strong> of online gross gaming revenue.<\/p>\n\n\nTaxes could drive players offshore, warns Sun International<\/strong><\/h2>\n\n\n\n
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