South Africa is moving toward introducing a new tax on gambling revenue, a proposal that has sparked widespread debate across the country as online betting continues to expand at a rapid pace.
The National Treasury is considering a 20% levy on gross gambling revenue (GGR), particularly targeting online and sports betting platforms. The measure is expected to generate more than R10 billion annually, while also addressing mounting concerns about gambling addiction and its broader social impact.
Finance Minister Enoch Godongwana confirmed that feedback from the public consultation process has revealed sharply divided opinions. Submissions were received from individuals, industry stakeholders, civil society groups, and political organisations, highlighting disagreements over whether the proposed rate is too high or too low.
Conflicting priorities: revenue vs regulation
Supporters of the tax argue that stronger fiscal measures are necessary to manage the social costs associated with gambling, particularly as online platforms make betting more accessible than ever before. Concerns around addiction and financial distress have increasingly come into focus in recent years.
However, critics warn that imposing a higher tax burden could drive users toward unregulated or offshore gambling operators, weakening oversight and reducing potential tax collection. Others have raised legal concerns, including questions around constitutional authority and the division of regulatory powers between national and provincial governments.
In addition to legal complexities, practical challenges such as enforcement capacity, administrative feasibility, and the distribution of tax revenue between different levels of government have also been highlighted.
The public comment period for the proposal closed on 27 February 2026, but the Treasury has indicated that further engagement will follow. A stakeholder workshop is expected to take place before a revised version of the proposal is incorporated into draft legislation later this year. Any final policy decision is likely to be announced as part of the 2027 National Budget.
Rapid growth of gambling sector raises concerns
The debate comes against the backdrop of significant expansion in South Africa’s gambling industry. Makashule Gana, a Member of Parliament from RISE Mzansi, has been particularly vocal about the pace of growth, arguing that it disproportionately affects lower-income communities.
Recent parliamentary disclosures revealed that the number of registered bookmakers in South Africa has exceeded 400, a figure notably higher than in countries such as Australia and Brazil. The number has increased sharply from 288 in 2020 to over 400 in 2025, reflecting a post-pandemic boom in online betting.
Gana and his party have called for stricter regulatory intervention, including a temporary halt on issuing new online bookmaker licenses. They have also urged the government to introduce a national licensing framework, noting that current provincial systems are not equipped to regulate operators that function across multiple regions.
In provinces such as Mpumalanga, the Eastern Cape, North West, and the Free State, the number of bookmakers has more than doubled over the past five years, further intensifying concerns about regulatory gaps.
As policymakers weigh the potential benefits and risks of the proposed tax, the broader challenge remains how to balance economic opportunity with effective oversight in a rapidly evolving digital gambling landscape.
Source: South African National Treasury / Parliamentary responses
