Tax rise possible as South Africa grapples with gambling harm
South Africa’s National Treasury has extended the deadline for public submissions on a proposed national tax targeting online gambling, citing mounting concern over the rapid expansion of the sector and its social impact.
In a statement, Treasury said the widespread availability of online betting has intensified the risk of gambling addiction, with digital platforms, including sports betting sites and online casinos, allowing constant access and increased exposure.
It added that gambling has become increasingly normalised through partnerships with sports and cultural events, backed by aggressive marketing. Examples of this include Betway sponsoring the PSL and HollywoodBets long association with rugby union.
Data from the National Gambling Board shows that R1.5 trillion was wagered across the industry in the 2024/25 financial year, a 31.3% increase year on year. Betting accounted for roughly three-quarters of turnover, while casinos contributed just under 20%.
Treasury has proposed a 20% tax on gross gambling revenue from online betting and interactive gambling, on top of existing provincial levies. The measure could generate more than R10 billion annually, although officials stressed the primary aim is to curb problem gambling rather than boost state revenue.
