South Africa delays decision on proposed 20% online gambling tax
South Africa’s National Treasury has pushed back a final decision on its proposed 20% national online gambling tax until February 2027, extending uncertainty for licensed betting sites already facing substantial provincial and national taxes.
Finance Minister Enoch Godongwana confirmed the revised timetable in his Medium-Term Budget Policy Statement on October 21, nearly a year after Treasury first outlined plans to introduce an additional tax on online gambling revenue.
The proposal, published in November 2025, would impose a 20% national tax on gross gambling revenue (GGR), calculated as wagers received minus winnings paid to customers. The levy would apply in addition to existing provincial gambling taxes and VAT obligations.
Treasury estimates the measure could generate more than R10 billion annually while helping address gambling-related harm.
However, the proposal has encountered opposition from South Africa’s regulated gambling industry, with concerns about increased operating costs, reduced competitiveness and the potential migration of customers to unlicensed offshore gambling websites.
Godongwana confirmed that several issues remain unresolved following public consultation, which closed in February 2026.
“Consultations are ongoing on the proposed tax design, its linkages to the existing regulatory framework, and the implications for provinces and the currently regulated market,” he said.
“An announcement of the final design will be made in the February 2027 Budget.”
The delay reflects the complexity of introducing a national gambling tax alongside South Africa’s existing provincial licensing and taxation framework.
The South African Bookmakers’ Association has previously warned that licensed operators already face combined VAT and provincial gambling taxes averaging approximately 18% to 19% of GGR.
Adding another 20% levy could significantly reduce operating margins, potentially affecting bookmaker profitability, investment and employment.
Industry representatives have also questioned whether higher taxes would achieve the government’s harm-reduction objectives if customers instead move to offshore betting operators outside South Africa’s regulatory framework.
February’s announcement will not automatically introduce the tax. Any new national levy would still require legislation and parliamentary approval before taking effect.
