Online gambling tax: Treasury reveals when South Africans will know the final plan
National Treasury will reveal the final design of its proposed national online gambling tax in February 2027, as consultations continue over how the levy will work.
South Africans will not receive details regarding the implementation of the proposed national online gambling tax until February next year, as confirmed by the National Treasury. Finance Minister Enoch Godongwana announced this during the Medium-Term Budget Policy Statement on Wednesday, stating that consultations are ongoing for the proposed tax and its potential effects on the gambling sector and provincial governments.
The received feedback generally recognized the necessity to tackle the increase in online gambling and its related issues. Last year, Treasury released a discussion paper suggesting a 20% national tax on gross gambling revenue from online betting and interactive gambling. This tax would be in addition to the existing provincial gambling taxes.
Treasury projected that the proposed tax could generate over R10 billion in additional revenue for the state, and also contribute towards addressing the social harm associated with problem gambling. However, the proposal has sparked concerns within the gambling industry, with warnings that higher taxes could drive players towards unlicensed offshore operators.
The final design of the tax plan is still to be determined, with Treasury contemplating how the tax would integrate into the existing regulatory framework and its implications for provinces and the currently regulated market.
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