South Africa proposes 20% national tax on online gambling GGR

Online growth pushes a major shift

South Africa’s National Treasury has suggested a 20% national tax on gross gambling revenue. The plan could change how the online gambling sector works, which has expanded quickly since the pandemic. Officials say the new tax may raise about R10bn each year — yet the main aim is to reduce harm linked to risky play.

The Treasury notes that problem gambling can place pressure on society — a pressure the current rules struggle to manage. This concern has added new tension to a sector long split across different provincial systems.

The numbers show strong growth. The National Gambling Board says total turnover in 2024/2025 reached about R1.50tn, up 31.3% from the year before. Betting, including sports and horse racing, made up 75% of that figure. Casinos added 19.5%.

A complex system under stress

Gambling in South Africa is run by nine provincial regulators. Each province has its own rules, its own process, and its own view of online activity. This setup may work for land-based casinos, yet it struggles with online behaviour that crosses borders.

A national tax could fix several gaps. It may create one clear structure, improve reporting, and reduce the chance of provinces competing by offering lower taxes. 

The new levy would lift the effective rate to 26–29% once provincial taxes are added. Officials say many countries with large online markets charge similar or higher levels.

One part stands out — the tax would also apply to online casino gambling, even though it is technically illegal. Two provinces, the Western Cape and Mpumalanga, allow fixed-odds bets on casino-style games, live-dealer tables, and virtual titles. 

A market waiting for clear direction

South Africa has tried before to set national rules. In April 2024, the Democratic Alliance brought a new online gambling bill to parliament, but the process stalled. The new Treasury paper brings the issue back into focus — and increases pressure to act. The proposal includes:

• One national tax for all online operators

• Clearer reporting rules for companies

• A goal to reduce harm linked to risky play

What happens now

The Treasury has opened the proposal for public comment until 30 January. Industry groups, user advocates, and provincial regulators will now respond. The final outcome may change how operators work — and how the state manages a fast-growing digital market.

For now, the sector waits. The stakes appear high — and the debate is far from over.