Sun International criticises Treasury's new gambling tax proposal

SUN International on Tuesday slammed a proposed new gambling proposal by Treasury saying gambling will make the industry one of the highest taxed gambling industries in the world and destabilise the legal gambling industry.

- PHILIPPA LARKIN

TREASURY on Tuesday released a discussion paper titled "The Case for a National Online Gambling Tax".

(RAWPIXEL)

It also said customers will shift to offshore platforms and receive less protection, which directly contradicts the proposed regulatory intent.

This after Treasury on Tuesday released a discussion paper titled "The Case for a National Online Gambling Tax", reveals that government is weighing the introduction of a 20% national levy on gross gambling revenue (GGR) from online betting and any future interactive gambling activities.

This would be imposed in addition to existing provincial gambling taxes, potentially lifting the combined tax burden on operators to between 26% and 29%.

The discussion document calls for public comment.

Treasury argues that the rapid expansion of online gambling, now available “anywhere, at any time’, has outpaced South Africa’s regulatory framework, creating gaps that increase the risk of problem gambling, addiction, and associated social costs.