South Africans could see a new national tax on online gambling following a proposal by National Treasury aimed at addressing the sector’s rapid growth and its social impact. Finance Minister Enoch Godongwana confirmed in the 2026 Medium-Term Budget Policy Statement that the final design of the proposed National Online Gambling Tax will be announced in the February 2027 Budget. Consultations on how the measure will work are still underway.
The proposal follows a discussion paper published by National Treasury in 2025, which suggested a 20% tax on gross gambling revenue generated by online betting and interactive gambling. According to Daily Investor, Treasury estimated that the proposed measure could generate about R10 billion in additional revenue for the state. However, the primary objective is to address the social harm associated with increased online gambling rather than simply raise money.
National Treasury has described the proposal as similar to a “sin tax”, with the levy intended to discourage harmful gambling behaviour by taxing operators rather than individual bets. The proposed national levy would be introduced alongside existing provincial gambling taxes, which operators currently pay under provincial regulations. The proposal has faced opposition from gambling companies and tax professionals, who have warned that higher costs could push some players towards unlicensed offshore gambling platforms.
Questions also remain about how the tax would be collected, whether it would apply to operators at a standard rate and how it would interact with existing gambling regulations. Forvis Mazars tax specialist Devakalyani Moodley told Daily Investor that implementation could be complicated, with the final approach still requiring clarity.
National Treasury said consultations are continuing on the tax’s design, its relationship with the existing regulatory framework and its potential implications for provinces and the regulated gambling industry. The revenue collected would go into the National Revenue Fund and be allocated through the national budget. Potential areas of public spending include healthcare, policing, education and infrastructure.
The tax is not yet in force, and the February 2027 Budget announcement is expected to provide further details on its final structure. No implementation date has been confirmed.
Leave a Reply