South Africa’s National Treasury has extended the deadline for public comments for its proposed nationwide online gambling tax. The proposal allows industry stakeholders more time to respond to the draft bill. The consultation, announced in November and originally scheduled to close on January 30, will now run until February 27, 2026. It aims to introduce a 20% tax on gross gambling revenue (GGR) from online activities, in addition to existing provincial gambling taxes.
South Africa Extends Public Consultation Deadline on Gambling Tax Hike: Key Insights
- Authorities have extended the public consultation on a proposed nationwide online gambling tax from January 30 to February 27. The draft bill introduces a 20% tax on iGaming GGR, in addition to the existing taxes.
- The combined national and provincial tax burden would raise the effective rate to between 26% and 29%. The National Treasury framed the levy as a “sin tax”, addressing the wider social costs linked to problem gambling.
- South African lawmakers have been debating regulation and legality, with some political support for stronger intervention, while the opposition argues that online gambling remains illegal under incomplete legislation.
National Treasury Proposes 20% “Sin Tax” on Online Gambling GGR
In an attempt to update South Africa’s gambling legislation, the National Gambling Act 7 of 2004, the National Treasury is proposing a 20% tax rate on gross gambling revenue from online activity. Coupled with provincial taxes, which vary between 6 and 9% depending on the location and vertical, the total tax on online gambling in South Africa will sit between 26 and 29%.
South Africa’s Treasury had announced the need for a national tax bracket in Q4 2025. The deadline for public comments regarding the draft bill was set at January 30. However, in a recent press release from Thursday, January 15, officials extended the deadline until February 27, citing “numerous requests from industry stakeholders”.
Authorities noted that the extension will enable broader input on the tax design and its potential effects. The proposed national tax is projected to raise over ZAR 10 billion (approximately €526 million) per year. However, the Ministry of Finance has emphasised that the main aim of the tax is to ensure accountability among operators, especially given the rise of online gambling.
The ministry observed:
External costs associated with gambling are internalised by those who provide and participate in gambling.
The department has described the proposed levy as a “sin tax”, drawing parallels with existing taxes imposed on products such as alcohol and tobacco. South Africa isn’t the first nation to impose sin taxes on gambling. In December, Australia excluded gambling from research and development tax benefits, along with alcohol and tobacco.
The proposal noted that modern technology has made gambling accessible to all. Since provincial boundaries do not apply to remote casinos, they must be taxed at the national level.
The proposal stated:
Advances in technology have made online gambling more accessible, changing how people gamble and increasing the variety of gambling products available, which gamblers can now access from anywhere, at any time. It transcends the provincial boundaries and cannot be realistically and fully administered at a provincial level.
The proposal would shift the tax burden from individual bettors to gambling companies.
It added:
From a public policy perspective, there should be no problem with recreational gamblers as they do not place any external costs on society. However, to the extent that problem and pathological gambling impose a cost on society (externalities), it is in the public interest that such behaviour be regulated or reduced.
The National Treasury emphasises that the tax is designed to curb gambling addiction and reduce the social and economic harm associated with excessive betting.
Industry Growth Mounts Pressure for Regulatory Reform
The proposal comes amid rapid growth in South Africa’s gambling sector. Despite online sports betting remaining the only legalised form of remote gambling across the nation, the National Gaming Board (NGB) has found that operator GGR has continued to rise year-on-year, largely driven by betting activity, both online and retail.
Operators reported revenue of ZAR 74.5 billion (approximately € 3.91 billion) in the 2024 financial year, up 25.6% Year-over-Year (YoY). Data from the National Gambling Board indicates that total wagers climbed to ZAR 1.5 trillion (roughly €79 billion) during the 2024/25 financial year, reflecting a 31.3% increase compared with the previous year.
Betting now dominates the gambling landscape, accounting for 75% of all gambling activity, with online platforms playing a central role. Revenue generated from betting has surged dramatically, rising by 390% over the past five years to nearly ZAR 52 billion (nearly €2.7 billion).
A 2008 amendment to legalise the online casino sector has yet to be implemented. However, a central online gambling tax may reopen these discussions and introduce long-overdue iGaming reform. The push for increased oversight is partly due to the growing black-market gaming activities in South Africa.
Last month, Lungile Dukwana, the Acting Chief Executive Officer of the NGB, cautioned players against participating in unregulated games of chance online during the festive period. He explained the risks posed by gambling harm, irrespective of age, background or income.
Dukwana noted:
The festive season often brings increased financial pressure and emotional stress, which can escalate risky gambling behaviour. Problem gambling can affect anyone, regardless of age, background, or income level. Early intervention is key to avoiding financial loss, relationship breakdown, or mental-health harm.
Political reactions to the tax hike proposal have been mixed. Makashule Gana, a Member of Parliament, has welcomed the initiative, arguing that gambling is increasingly damaging livelihoods and household incomes and that decisive intervention is necessary.
In contrast, the Free Market Foundation has opposed the hike, arguing that online gambling remains illegal under incomplete legislation from 2008 and therefore should not be taxed. As the consultation period continues, all eyes are now on the future course of online gambling regulations in South Africa.