South Africa’s National Treasury is proposing a 20% tax on gross gambling revenue from online betting, a move aimed at slowing the rapidly expanding digital gambling industry and reducing its social fallout.
In a discussion paper released on Tuesday, the Treasury said the explosive rise in online wagering—fueled by widespread smartphone use and worsening economic conditions—has intensified concerns about addiction, financial distress, and other social harms. While the tax could bring in an estimated R10 billion annually, officials stressed that its primary purpose is to discourage problem and pathological gambling.
The scale of the industry’s growth has been dramatic. Data from the National Gambling Board shows that R1.5 trillion was wagered across South Africa in the 2024–25 financial year, an increase of nearly one-third from the previous year. Gambling participation has also climbed sharply, reaching 65.7% in 2023—more than double the rate recorded in 2017. The biggest drivers of this surge are online sports betting and the National Lottery.
Young adults between 25 and 34 make up the largest share of gamblers, while Mpumalanga, the Western Cape, and Gauteng together account for more than 80% of all gambling turnover.
The Treasury noted that the proposed tax aligns with international practice. The United Kingdom, for example, applies a 21% levy on remote gaming, while New Zealand imposes a 12% duty on offshore online gambling profits.
Other regulatory steps are also under consideration. A key proposal would require online betting operators to register directly with the South African Revenue Service and submit data that is currently provided only to provincial gambling boards. The Treasury says this could streamline oversight and improve tax collection in an industry that has outpaced existing regulation.
The discussion paper marks the government’s latest attempt to adapt to a fast-growing sector that is reshaping South Africa’s gambling landscape—and raising urgent questions about how to balance economic benefits with social protection.