South Africa Moves to Tax Gambling

The South African government is exploring the implementation of a national tax on gambling to mitigate the growing social costs associated with the sector.

A discussion paper released by the National Treasury argues that gambling, especially online betting, has become increasingly accessible and widespread, causing significant social and economic harm.

According to the latest data, South Africa’s gambling industry saw a turnover of over R1.5 trillion in the 2024/2025 financial year, with 75%, coming from the betting sector.

Experts warn of the negative social impact of gambling, including financial stress, family breakdowns, and mental health problems.

The Common Sense has previously reported on how this evil pastime wrecks the living standards of the poor and was a factor in the African National Congress losing its majority in last year’s election. This newspaper has also previously reported on calls for the industry to be taxed in order to mitigate the damage it causes to society.

The proposed tax, set at 20% on gross gambling revenue, would apply to all forms of gambling, including online betting and interactive gambling. The aim is not only to raise additional government revenue but also to curb excessive gambling and mitigate its social costs. This tax would be imposed on top of existing provincial taxes, with the government anticipating over R10 billion in additional revenue.

The South African proposal aligns with global trends of taxing online gambling activities to protect consumers and raise funds for social welfare.

International examples from Britain, New Zealand, Kenya, and Australia serve as models for the proposed new tax.

As gambling becomes more digital and less confined to physical venues, the Treasury emphasises the need for a unified national tax to replace inconsistent provincial regulations.

The Treasury’s proposal is expected to face significant opposition from gambling operators.

However, given the damage gambling has done to individuals, families, and broader society the Treasury’s move is likely to be welcomed by political parties, activists, and the broader public.