SA considers 20 % online betting tax amid gambling boom

South Africa is weighing the introduction of a 20 % national tax on online betting and interactive gambling as digital wagering surges to unprecedented levels. The National Treasury’s draft discussion paper proposes that the levy be applied to gross gambling revenue from licensed operators, adding to existing provincial taxes and potentially bringing the combined burden on operators close to 30 %.

The proposal comes as online betting overtakes traditional casinos as the country’s dominant gambling channel, with turnover in the sector reaching R1.5 trillion in 2024/25. Treasury argues the measure is designed not primarily to raise revenue but to account for the social harms linked to online gambling, including addiction, debt and family strain, and to fund social‑intervention programmes to mitigate these consequences.

Supporters say the tax is a necessary step in addressing the rapid expansion of digital gambling and the risks it poses. Lawmakers have welcomed the initiative but caution that it should be part of a broader strategy, including stricter enforcement against illegal offshore operators, tighter advertising regulations, limits on influencer marketing, and nationwide awareness campaigns about responsible gambling.

Industry analysts and civil‑society voices, however, warn that the high tax rate could backfire. Punters may migrate to unregulated offshore platforms, reducing oversight, weakening player protections, and ultimately undermining both the Treasury’s social‑harm objectives and potential revenue gains.

As public submissions remain open until 30 January 2026, South Africa faces a critical decision on how to balance economic opportunity, consumer protection, and regulation in a digital betting landscape where accessibility has never been highe