South Africa’s gambling industry is facing what could be one of the biggest tax increases in its history.
In November 2025, the National Treasury published a 24-page discussion paper proposing a new online betting tax of 20% on gross gambling revenue. If implemented, the government says the measure would reduce problem gambling and more than double tax revenue from the sector, from the current 4.8 billion Rand to 10 billion Rand a year.
While public consultations on the proposed tax ended in February 2026, the bill is expected in parliament later this year, with a final proposal likely to arrive in February 2027. But before lawmakers draft the bill, it’s worth understanding what prompted the Treasury to act in the first place.
A market that is growing too fast to ignore
The online gambling market in South Africa has expanded significantly over the past few years. In the 2024/25 financial year, SA players bet R1.5 trillion, a whopping 31.3% increase on the previous year. South Africa’s National Gambling Board attributes this huge growth to faster internet speeds, increased smartphone betting and 24/7 availability.
Moreover, online gambling alone contributes almost 75% of betting revenue, further confirming that this activity that was once limited to physical facilities has decisively moved online.
Consumer preferences also further reflect this change. Players are increasingly looking for platforms that offer fast ZAR friendly transactions, generous bonuses and a wide selection of games. Features that are visible through South You can find African casinos at Casino.com. This rapid increase in online gambling and betting activities has outstripped SA’s policy and regulatory frameworks.
The current tax model allows provincial gaming boards to license and tax online bookmakers and their land-based counterparts. Interactive gambling, which includes online casino-style games, remains illegal National Gambling Act of 2008 amending the Act, intended for decorating this niche, was never put into operation.
As a result, South Africa’s uneven gambling regulations, along with different provincial tax rates, have created an environment where legislation has struggled to keep pace with the social costs of digital gaming.
The proposed national tax targets regulatory loopholes
With a patchwork of provincial oversight and outdated legislation, SA’s growing online gambling market has largely outstripped the rules governing it. However, the Finance Ministry’s proposed tax aims to change that.
The government recommends a national tax of 20% on gross gambling income from both online betting and interactive gambling. First of all, the proposal extends to interactive gambling even where it remains technically illegal, a tacit acknowledgment that the activity takes place regardless of its legal status.
In terms of compliance, the discussion paper proposes that local online betting operators register with the South African Revenue Service (SARS) using the same information already provided to provincial gaming boards for provincial tax purposes. In this way, the government would effectively impose the proposed tax on gross gambling revenues generated specifically by online betting and interactive gambling services.
The proposal represents the most coordinated attempt yet to bring South Africa’s fragmented online gambling tax framework into line with the reality of a market that has grown far beyond what existing legislation envisioned. But whether the numbers make sense to both operators and consumers is a separate question. What the industry is already clamoring for.
“Sheer revenue-grabbing,” say industry critics
Bookmakers and other stakeholders are lobbying hard against the proposed national tax, arguing it would do more harm than good. Instead of curbing gambling, they say it would cede market share to unregulated operators, ultimately reducing the revenue the government aims to collect.
The Free Market Foundation specifically described the new national tax as “sheer revenue grabbing that threatens the very existence of the legal gambling market.“It also suggests the move would be unconstitutional. According to its detailed submissions, the organization says imposing a national tax on an activity currently regulated by provincial licensing frameworks represents a centralization of power. This in turn flies in the face of the country’s established division of regulatory bodies.
Figures add fuel to that argument. Licensed SA operators already pay VAT and provincial gambling levies ranging between 6% and 9%, depending on the province and vertical offered. Stacking the proposed 20% tax would effectively increase the combined tax rate to 26%-29%. Such figures, critics say, could make licensed operators uncompetitive with offshore platforms that pay no South African tax at all.
The research he cites South African Bookmakers Association (SABA) CEO, Sean Coleman, reveals more than 2,084 unregulated bookies targeted SA players in 2024/25 alone. On top of that, 27% of South Africans interacted with illegal gambling platforms during the same period, allowing such operators to account for 62% of all online gambling activity in the country.
The case for regulation above income
The argument gaining traction among industry voices is simple: Taxing a broken market doesn’t fix it. Existing rules did not deter the 27% of South Africans who gambled on illegal platforms in 2024/2025, and increasing compliance costs for licensed operators will not change that. If anything, it makes the unregulated alternative more attractive.
Critics argue that the more pressing issue is enforcement. Illegal platforms operate without any consumer protection. A more logical starting point is to bring this activity into a properly regulated framework, instead of burdening operators who already comply with more taxes. Consequently, the revenue issue mostly resolves itself once the market is properly regulated.
