South Africa’s 20% Gambling Tax Sparks Industry Pushback

South Africa’s proposed online gambling tax is facing growing concern, as National Treasury moves to introduce a 20% levy that could push total operator taxes close to 30%.

The proposal targets the country’s fast-growing betting sector, but industry players warn it could reshape the market in ways that go beyond regulation.

What is the new gambling tax

The proposal introduces a 20% national tax on gross gambling revenue for online betting, sports betting and interactive gambling operators.

This would apply on top of existing provincial taxes, which currently range between 6% and 9%.

If implemented, the total tax burden could rise to between 26% and 29%.

Why the tax is being introduced

The South African National Treasury outlined the plan in a 2025 discussion paper.

The tax is positioned as a measure to reduce gambling-related harm and address what it describes as rising levels of “pathological gambling”.

The online sector has grown rapidly, accounting for more than 85% of total betting gross gambling revenue in the 2024 to 2025 period.

This growth has prompted increased regulatory attention.

Industry pushback grows

Concerns are building across the gambling industry, with operators warning that the proposed tax could place significant pressure on margins and long-term sustainability.

Some stakeholders argue that the higher tax burden may discourage compliance and drive activity toward unregulated platforms.

There are also concerns that smaller operators could struggle to absorb the increased costs, potentially reducing competition in the market.

Impact on operators and the market

The proposed tax could have several effects:

• Increased operating costs
• Reduced profitability
• Higher barriers to entry
• Potential price changes for consumers

While the intention is to improve regulation and reduce social harm, the financial impact on the sector is expected to be substantial.

Public participation and next steps

The proposal was opened for public comment, with submissions closing on 27 February 2026.

Feedback from industry stakeholders is expected to influence the final structure of the tax.

Why this matters

This proposal could significantly change how online gambling operates in South Africa.

It signals a shift toward tighter control of the digital betting economy and raises questions about how regulation and growth will be balanced going forward.

FAQs

What is the new gambling tax in South Africa

The proposed tax is a 20% levy on gross gambling revenue for online betting and interactive gambling operators.

How will the gambling tax affect operators

It could increase total tax costs to nearly 30%, reducing margins and affecting pricing and competition.

When will the gambling tax be implemented

The proposal is still under review, with public comments submitted in early 2026 and further decisions expected from National Treasury.

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