Staff Reporter|Published
South Africans will have to wait until February next year to find out exactly how government’s proposed national online gambling tax will work, with National Treasury confirming that the final design will be announced in the 2027 Budget.
Finance Minister Enoch Godongwana provided the update during Wednesday’s Medium-Term Budget Policy Statement, saying consultations were continuing on the proposed tax and its potential impact on the gambling industry and provincial governments.
“The submissions received generally recognised the need to address the growth of online gambling and its associated harm,” Godongwana said.
Proposed tax
Treasury published a discussion paper last year proposing a 20% national tax on gross gambling revenue from online betting and interactive gambling. Gross gambling revenue refers to the money operators retain after paying out winnings to players.
The proposed tax would be additional to existing provincial gambling taxes. Treasury estimated it could generate more than R10 billion in extra revenue for the state, while also helping to address the social harm associated with problem gambling.
However, the proposal has raised concerns within the gambling industry, including warnings that higher taxes could push players towards unlicensed offshore operators.
The final design has yet to be determined, with Treasury still considering how the tax would fit into the existing regulatory framework and what it would mean for provinces and the currently regulated market.
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