Treasury's gamble gone wrong

REVENUE: PROPOSED 20% ONLINE BETTING TAX STIRS CONTROVERSY AND BACKLASH

- Amanda Visser

PROPOSAL. At current levels, a tax would deliver more than R10 billion to the national government – but ‘the main objective is discourage problem gambling’.

(Picture: AdobeStock)

The potential introduction of a 20% national tax on the gross gambling revenue of all forms of online gambling may very well violate the constitution.

Commentators are also of the view that it undermines democratic practice due to the lack of meaningful consultation with those who will be affected.

The Free Market Foundation calls the proposal "a naked revenue grab that threatens the very existence of the legal gambling market".

Revenue from legal gambling is widely regarded as a far safer alternative than the technically illegal, unregulated activity of interactive gambling.

Ayanda Zulu, political studies graduate from the University of Pretoria and an intern at the Free Market Foundation, says in a published article the "bizarre proposal" should not see the light of day.

In terms of the National Gambling Act, gambling regulation is effectively a provincial competence. While the national government plays a role in oversight and coordination, the provinces retain primary authority over regulatory responsibilities.