South Africa’s National Treasury has released a discussion paper outlining plans to introduce a nationwide levy on online gambling activity. The proposal aims to mitigate the social costs of problem gambling while creating a more cohesive regulatory structure for a rapidly expanding market. According to Treasury officials, the country’s existing provincial licensing system is no longer adequate for governing online operations, which increasingly transcend regional boundaries.
The growth of online gambling has been significant, with betting accounting for 75% of the gambling sector’s turnover in the 2024/2025 financial year. Overall, the industry generated approximately R1.50tn in turnover, representing annual growth of more than 31%. The Treasury argues that implementing a national tax would streamline administration, enhance compliance, and prevent provinces from competing through differing tax policies.
If enacted, the 20% GGR tax would be applied alongside existing provincial taxes, creating an effective rate between 26% and 29%. This aligns with international markets where online gambling is heavily regulated and taxed at comparable or higher levels. The levy would also apply to operators offering online casino-style games, despite the activity’s technically illegal status, as some provinces currently license fixed odds and live-dealer formats under betting regulations.
The proposal arrives as lawmakers continue to debate broader reforms to the online gambling sector. A previous legislative initiative introduced in 2024 has yet to make meaningful progress. With the Treasury now opening its discussion paper for stakeholder comments until 30 January, operators, regulators, and industry associations are preparing to engage in a critical policy review that could reshape South Africa’s digital gambling landscape for years to come.
