Storm brewing over South Africa’s new 20% tax
A proposed 20% national tax on gross gambling revenue (GGR) is stirring strong debate across South Africa, as government looks to tap into the rapid growth of online betting.
The proposal—being considered by the National Treasury—targets online, interactive, and sports betting operators. It could generate more than R10 billion annually, while also aiming to curb the social harms linked to rising gambling addiction.
Finance Minister Enoch Godongwana confirmed that public submissions reveal sharply divided views. Some stakeholders argue the 20% rate is too high and risks pushing bettors toward illegal or offshore platforms, while others believe it is too low to meaningfully address social and public-health concerns.
There are also deeper issues at play. Submissions raised concerns about:
- Whether national government has the authority versus provinces
- How such a tax would be enforced
- Administrative complexity
- Whether the revenue should be ring-fenced for social programmes
A full assessment is still pending, but the next step is a stakeholder workshop before a revised proposal is drafted into legislation later in 2026. If it proceeds, it would likely only be formally introduced in the 2027 national budget cycle.
Explosive growth in gambling
The debate comes amid a surge in betting activity. Makashule Gana has been particularly vocal, warning that the expansion of gambling disproportionately affects lower-income communities.
His party has even called on Trade and Industry Minister Parks Tau to impose a moratorium on new online bookmaker licences.
The numbers highlight why:
- Over 400 registered bookmakers in South Africa
- Up from 288 in 2020
- More than double Australia and far above Brazil
Much of this growth has been driven by online betting since the pandemic, with provinces struggling to regulate platforms that operate nationally.
The bigger picture
At its core, the proposed tax sits at the intersection of two competing priorities:
- Revenue generation: capturing a fast-growing digital industry
- Social protection: limiting addiction and financial harm
Push the tax too high, and illegal markets may thrive. Keep it too low, and critics argue it fails to address the real societal cost.
For now, the proposal remains under consultation—but it’s clear that whatever emerges will reshape South Africa’s gambling landscape in a significant way.
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