South Africa Players to Await Until 2027 on Update on Proposed 20% Online Gambling Tax
South Africa National Treasury has confirmed that the final design of the government’s proposed national online gambling tax will be revealed in the 2027 budget, so South Africans will have to wait until February 2027 to learn details.
The tax, which was first put forth by National Treasury in November 2025, would be applied in addition to the current provincial gambling taxes. The proposal’s potential effects on licensed operators and provincial gaming regulations are still up for debate.
In his Medium-Term Budget Policy Statement, Godongwana stated, “Last year, the National Treasury published a discussion paper proposing a National Online Gambling Tax. The submissions received generally recognised the need to address the growth of online gambling and its associated harm. Consultations are ongoing on the proposed tax design, its linkages to the existing regulatory framework, and the implications for provinces and the currently regulated market. An announcement of the final design will be made in the February 2027 Budget.”
Last year, Treasury released a discussion paper that suggested a 20% national tax on the gross proceeds from interactive and online gambling. The current provincial gaming taxes would be bolstered by the proposed tax. According to Treasury’s estimation, it might help alleviate the social suffering caused by compulsive gambling and bring in an additional R10 billion for the state.
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Critics questioned its constitutionality and its effects on provincial regulatory power in January 2026. The South African Responsible Online Gambling Association (SAROGA) and Sun International, among other industry stakeholders, expressed worries that the proposed 20% levy might disadvantage licensed operators and drive players to unregulated offshore platforms.
Godongwana’s October statement reaffirmed that deliberations on the final design of the tax, its relationship to the current regulatory framework, and its consequences for provinces and the regulated market are ongoing, even though the public-comment period has ended.
The proposed 20% rate is not yet official. The terms of the tax are anticipated to be clarified in February 2027. The minister’s statement did not indicate when the tax would go into effect.
