Treasury’s plan for a 20% federal levy on online gambling revenue aims to modernise the legal framework, curb social harms, and address growing black-market activity
South Africa’s National Treasury has extended the public consultation period on its proposal to introduce a nationwide tax on online gambling, giving industry stakeholders additional time to respond to what could become one of the most significant regulatory changes to the country’s gaming sector in decades. Initially launched in November and scheduled to close on 30 January, the consultation deadline has now been pushed back to 27 February, reflecting the scale of interest and the complexity of the issues under consideration.
At the centre of the proposal is the introduction of a 20% tax on gross gambling revenue (GGR) generated from online activity. The measure is intended to modernise South Africa’s gambling framework, which is still largely governed by the National Gambling Act of 2004, a law drafted long before the explosive growth of digital and mobile betting. When combined with existing provincial gambling taxes, which typically range from 6% to 9% depending on the jurisdiction and vertical, the effective tax burden on online operators could rise to between 26% and 29%.
While the Ministry of Finance estimates that the new regime could generate more than R10 billion (£456 million) annually for the state, officials have stressed that revenue collection is not the sole objective. Instead, the policy is framed as a tool to ensure that the social and economic costs associated with gambling, particularly problem and pathological gambling, are borne by both operators and participants. Treasury has argued that the borderless nature of online gambling makes provincial-level regulation insufficient, necessitating a coordinated national approach.
In its consultation paper, the government noted that technological advances have transformed gambling into an always-on, location-independent activity, increasing product variety and accessibility. From a public policy standpoint, the document stated that while recreational gambling does not impose wider societal costs, excessive and harmful gambling does create externalities that justify stronger regulation and fiscal intervention.
The consultation comes against a backdrop of continued growth in South Africa’s regulated betting market. Although online sports betting remains the only fully legal form of remote gambling, the National Gambling Board has reported steady year-on-year increases in GGR, driven by both digital and land-based wagering. In the 2024 financial year, operators generated R74.5 billion in revenue, a 25.6% increase, with total player wagers exceeding R1.5 trillion.
Observers suggest that the introduction of a national iGaming tax could also reopen the long-stalled debate on the legalisation of online casino games. A 2008 legislative amendment envisaged such reform, but it has yet to be implemented. A clearer and more unified fiscal and regulatory framework may provide the impetus needed to advance broader iGaming legislation.
At the same time, authorities are intensifying efforts to combat illegal online gambling. The National Gambling Board and the Department of Trade, Industry and Competition have both warned of rising black-market activity, particularly during high-risk periods such as the festive season, and are working on renewed strategies to strengthen enforcement, curb unlawful advertising, and protect vulnerable consumers.
