National Treasury gives stakeholders extra time to respond as the government weighs new levy on digital betting revenue amid rapid market growth
South Africa’s National Treasury has extended the public consultation period on its proposed nationwide 20% tax on online gambling gross revenue, providing stakeholders additional time to review and comment on one of the most consequential fiscal proposals affecting the country’s digital gaming sector. Originally scheduled to close on 30 January 2026, the consultation period will now run until 27 February 2026 following formal requests from industry groups and other interested parties seeking more time to assess the potential impact of the measure.
The extension was confirmed in an official notice from Treasury, which stated, “Having due consideration for the requests for extension, National Treasury hereby extends the deadline for public comments on the discussion paper to close of business on 27 February 2026.” The decision reflects the government’s commitment to ensuring that operators, provincial authorities, and civil society organisations have adequate opportunity to provide detailed input before the proposed levy is finalised.
The discussion paper outlines the government’s rationale for the proposed tax. Treasury highlights the rapid growth of online gambling in South Africa and its social implications, stating that the 20% tax would apply to gross gambling revenue from interactive gambling and online betting platforms. This levy would be in addition to existing provincial taxes, which currently range from six to nine percent, potentially bringing the effective tax burden on online operators to between 26% and 29%.
While the projected revenue from the new tax could reach around R10 billion ($580 million) annually, Treasury emphasises that revenue generation is not the primary objective. Instead, the policy aims to mitigate the social harms associated with problem and pathological gambling. According to data from the National Gambling Board, the South African gambling industry recorded a total turnover of approximately R1.5 trillion in the 2024/2025 financial year, marking a 31.3% increase from the previous year. Betting activities, including sports and horse racing, accounted for 75% of turnover, while casinos contributed 19.5%.
Industry stakeholders have cautioned that layering a national tax on top of provincial levies may impose significant financial strain on operators. Nevertheless, the extension provides an important window for comprehensive feedback, allowing the government to refine its proposal and strike a balance between fiscal objectives, responsible gambling, and the sustainable growth of South Africa’s online gaming sector.
The consultation process represents a key step toward modernising South Africa’s gambling tax framework in the digital era, addressing both social responsibility concerns and the need for equitable and predictable revenue collection.
