Treasury proposes 20% national sin tax on online gambling

Government weighing a national levy on gross gambling revenue from online betting and gambling

- SIPHELELE DLUDLA

TREASURY discussion paper titled “The Case for a National Online Gambling Tax” and released on Tuesday, 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.

(SUPPLIED)

SOUTH Africa is considering one of its most significant gambling policy shifts in decades, with the National Treasury proposing a new national tax on online and interactive gambling amid explosive growth in the digital betting industry and rising concerns about social harm.

If adopted, the national tax would mark the most far-reaching reform of South Africa's gambling tax framework since the mid-1990s.

Treasury discussion paper titled "The Case for a National Online Gambling Tax" and released on Tuesday, 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%.

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.

According to the National Gambling Board's latest data, gambling turnover soared to R1.5 trillion in 2024/25, up 31% from the R1.43trln generated during the previous financial year. Betting accounted for a staggering 75% of all wagering, driven overwhelmingly by online platforms. Of the R51.97 billion in betting GGR, 85.5% came from online betting.

Physical casinos - once the dominant force in the gambling market - have declined sharply, slipping from a 39% market share in 2020/21 to just 22% today.