The Western Cape Gambling and Racing Act <\/strong>and the Eastern Cape Gambling Act<\/strong> regulate casino operations<\/strong>, including the calculation of adjusted gross revenue for taxation. Both Acts are designed to ensure that all amounts wagered or credited in casino play, including non-cashable loyalty rewards, are properly reported and taxed<\/strong>.<\/p>\n\n\n\n The case involved two major casino operators<\/strong>, one in each province, who had sought to exclude freeplay credits<\/strong> from their AGR for tax purposes. The judgment, delivered on August 29, 2025, provides clarity for casinos in both provinces on how these “loyalty credits are treated for taxation<\/strong>, according to the Constitutional Court of South Africa, case number ZACC 18 of 2025″, published on the Southern African Legal Information Institute (SAFLII) website.<\/p>\n\n\n\n Provincial gambling boards<\/strong> argued that all credited amounts, including non-cashable freeplay, should be included in AGR as taxable revenue. The dispute centred on the statutory interpretation of provincial gambling acts, not constitutional issues.<\/p>\n\n\n\n Justice Jody Kollapen<\/strong>, delivering the judgment, emphasised that the case was strictly a matter of statutory interpretation affecting only the narrow interests<\/strong> of the parties involved.<\/p>\n\n\n\n SAFLII said: “The Court confirmed that freeplay credits are part of AGR, dismissed applications<\/strong> to exclude them and ordered the applicants to pay the respondents\u2019 costs, including the costs of two counsel.”<\/p>\n\n\n\n The Court added that the case \u201cdid not present issues of broader public or constitutional significance\u201d as the ruling applies directly to the parties involved but sets guidance<\/strong> for other casino operators<\/strong>. The Court also dismissed applications<\/strong> for leave to appeal.<\/p>\n\n\n\n The ruling is seen as precedent-setting for South Africa\u2019s gambling industry<\/strong>, giving operators a clear framework for handling non-cashable loyalty credits. This reduces disputes over revenue reporting, ensures compliance<\/strong> with provincial regulations and could lead to an increase in taxable revenue for casinos and the government, making the financial implications more tangible.<\/p>\n\n\n\n By confirming that freeplay credits are taxable, the Constitutional Court has clarified<\/strong> a previously uncertain area<\/strong> of South African gambling law and ensured that casino operators accurately report revenue for taxation purposes.<\/p>\n\n\nFreeplay credits deemed taxable<\/h2>\n\n\n\n
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