South Africa’s government has proposed a 20% national tax on gross gambling revenue (GGR) from online betting. This is raising concerns among industry stakeholders about the impact on licensed operators. Combined with existing provincial levies and 15% VAT, the effective tax rate could reach 38–39%. This could potentially make South Africa one of the world’s highest-taxed online betting markets.
Sean Coleman, CEO of the South African Bookmakers Association (SABA), warned that the move overlooks the cumulative effect of VAT and regional taxes. He also says there is no clear allocation for harm reduction. Furthermore, he added that the levy could drive players to offshore, unregulated platforms. This could undermine consumer protection and public revenue.
The National Gambling Board (NGB) reports 1.5 trillion ZAR ($89 billion) was wagered in 2024/25. In addition, online betting accounted for 75% of total activity. Stakeholders argue that a tax applied directly to operators, without addressing problem gambling, could stifle competitiveness. Moreover, it could destabilize the licensed market.
The Treasury claims the levy aims to curb problem gambling, not raise revenue. However, critics, including the Free Market Foundation, call it a “weakly motivated tax grab.” They say it is likely to be unenforceable and harmful to legal operators.
SABA and legal experts urge authorities to reconsider the approach. Instead, they say focus should be on strengthening regulation, targeting illegal offshore operators, and funding concrete harm reduction initiatives.
