Cape Town – National Treasury’s proposed 20% tax on online gambling is facing mounting opposition from industry representatives and legal experts, who warn that the additional levy could threaten licensed betting businesses, undermine employment and drive gamblers towards unregulated offshore platforms.
The proposal, which would impose a national tax on gross gambling revenue (GGR) on top of existing provincial taxes, is intended to curb the rapid growth of online gambling while generating an estimated R10 billion in additional annual revenue for the government.
According to Daily Investor, gambling law expert Wayne Lurie of Lurie Inc Attorneys estimates that the combined tax burden could reach between 26% and 29% of GGR, rising to approximately 40% when VAT is included.
Lurie warned that the impact on operators’ profitability, investment and employment needed to be considered.
“Any assessment of the proposed tax must consider the cumulative burden on licensed operators, rather than looking at the national tax in isolation,” he said.
Gross gambling revenue
The concerns are reinforced by figures published by the National Gambling Board, showing that gross gambling revenue increased from R74.5 billion to approximately R84.6 billion in the 2025/26 financial year, while total gambling turnover reached R1.76 trillion.
The Citizen reported that the industry employs approximately 25,500 people directly across casinos and bookmakers, raising concerns about the potential consequences of additional taxation on jobs and investment.
There are also fears that higher taxes could make locally licensed operators less competitive, encouraging consumers to turn to offshore platforms that fall outside South Africa’s regulatory and consumer protection systems.
The Free Market Foundation previously called for the proposal to be withdrawn, warning that the government could struggle to enforce the tax against offshore operators.
Growing online gambling
“The assumption that it would be possible to enforce a tax on offshore platforms despite the absence of any mechanism or enforcement infrastructure is fundamentally flawed,” FMF policy officer Ayanda Zulu told EWN.
However, Treasury maintains that the proposed levy is intended to address the social consequences of growing online gambling activity, rather than simply increase government revenue.
Finance Minister Enoch Godongwana confirmed in October’s Medium-Term Budget Policy Statement that consultations were continuing on the tax’s design, its relationship with existing gambling regulations and its implications for provincial governments.
“The submissions received generally recognised the need to address the growth of online gambling and its associated harm,” he said, according to eNCA.
The final design of the proposed tax is expected to be announced in the February 2027 Budget, with the debate increasingly centred on whether government can curb gambling-related harm without damaging the regulated industry.
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Compiled by Betha Madhomu
