Proposed Gambling Tax in South Africa Could Push Burden to Operators
South Africa’s proposed 20% national online gambling tax has raised concerns regarding the overall cost it will impact licensed operators. Experts in gambling laws warn that the fee might increase the effective burden to about 40% of gross gaming revenue (GGR) when combined with provincial taxes and VAT.
The new figures highlight the need for the government to demonstrate that the proposed tax will accomplish its stated objectives without damaging the regulated industry or pushing customers to illicit gambling platforms, according to gambling law expert Garron Whitesman of Whitesmans Attorneys.
According to his estimations, the total burden might amount to 38–39% of GGR. When VAT is taken into account, Wayne Lurie of Lurie Inc. Attorneys estimates it to be about 40%. Lurie leads the Safe and Responsible Online Gambling Association (SAROGA) as its CEO. Both have requested that the proposal be reviewed.
These changes come after Treasury proposed a 20% National Online Gambling Tax, which it believes may increase annual revenue by almost R10 billion (US$610 million) and they would apply to GGR from online betting, including interactive gambling.
Read Also: Africa iGaming in September 2026: Blask recap
The scope of the regulated industry is emphasised in the National Gambling Board’s (NGB) 2025–2026 annual report. The industry-wide taxes and levies climbed from R5.81 billion (US$350 million) to R6.45 billion (US$388 million), while the total GGR increased from R74.5 billion (US$4.49 billion) to R84.46 billion (US$5.09 billion). The turnover increased from R1.5 trillion (US$90.3 billion) to R1.76 trillion (US$106 billion). These figures include the entire regulated gambling sector, not just online gambling.
The proposed tax is not yet enacted. The discussion paper was released by the National Treasury in November 2025, and the public comment period ended in February 2026.
However, in his Medium-Term Budget Policy Statement on 21st October, 2026, Finance Minister Enoch Godongwana stated that discussions over the tax design, its relationship to the current regulatory system and its implications for provinces and the regulated market were still ongoing. In the February 2027 budget, the final design is expected.
