The proposed 20 per cent national levy, outlined in National Treasury\u2019s discussion<\/strong> paper released on November 25, would apply to gross gambling revenue from online betting and future interactive gambling activities<\/strong>.<\/p>\n\n\n\n Whitesman, who is an internationally recognised<\/strong> gambling attorney and founder of Whitesmans Attorneys, said: \u201cThis is one hell of a fight<\/strong>. National Treasury has picked the fight.”<\/p>\n\n\n\n Whitesman warns the tax could push players offshore. “The extra tax would decrease the offerings<\/strong> in a regulated<\/strong> market that are available to players and push those players to the black market<\/strong>. And we\u2019ve seen it all over the world, where gambling taxes have gone up materially<\/strong>.”<\/p>\n\n\n\n Sean Coleman<\/strong>, CEO of SABA, emphasised that taxation must be grounded in legal <\/strong>certainty. He said: \u201cTaxes presuppose legality, and legality demands precision<\/strong> and certainty. The proper regulation of the online gaming industry depends squarely on this. Only once this has been achieved, should taxes follow<\/strong>.\u201d <\/p>\n\n\n\n Coleman called on Treasury to focus on refining a clear framework<\/strong> for interactive gambling and online betting, rather than imposing heavy levies prematurely<\/strong>.<\/p>\n\n\n\n The tax would be imposed in addition to existing provincial gambling taxes, potentially lifting the combined tax burden<\/strong> on operators to between 26\u202fand 29\u202fper\u202fcent.<\/p>\n\n\n\n Treasury says the measure is designed to curb problem gambling, citing the rapid expansion<\/strong> of online betting, which is now accessible<\/strong> \u201canywhere, at any time\u201d and reportedly drives a majority of wagering in the country.<\/p>\n\n\n\n Sun International <\/strong>CEO Ulrik Bengtsson warned that higher taxes would compromise player safety: \u201cThe major consequence will be that customers will receive less protection<\/strong>, which directly contradicts the proposed regulatory intent. Offshore operators do not offer the same level of consumer safety<\/strong>; they pay zero taxes and invest nothing in this country.\u201d <\/p>\n\n\n\n SAROGA similarly criticised the levy as \u201cflawed<\/strong>\u201d cautioning that it risks legitimising illegal gambling while a proper national framework remains unresolved.<\/strong><\/p>\n\n\n\n From Whitesman\u2019s stark warning that this is \u201cone hell of a fight\u201d, to Coleman\u2019s insistence on legal clarity<\/strong> and Bengtsson\u2019s consumer-protection concerns, industry leaders are sending a unified message<\/strong>: rushed, punitive taxation could shrink the regulated market, push players offshore, and leave South African consumers<\/strong> at risk<\/strong>.<\/p>\n\n\nTax is flawed<\/h2>\n\n\n\n
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