South Africa’s proposed national gambling levy could bring in new revenue for the state, but tax specialists warn it may also hurt compliant operators and drive gamblers to offshore platforms. Reports say the proposal centres on a 20% tax on gross gambling revenue at a time when online betting is expanding rapidly.

The warning comes as official data shows gambling and betting have grown sharply in recent years, with betting now the biggest engine of sector growth. Stats SA said gross gambling revenue rose to R59.3 billion in the 2023/24 financial year, led by betting rather than casinos.

Proposed tax could raise costs for licensed firms

The South Africa gambling tax proposal would sit on top of provincial gambling duties already charged across the country. Betting operators currently face provincial tax rates of about 6% to 9%, while casinos face about 10% to 15%, meaning a new national levy could materially increase the burden on legal businesses.

National Treasury’s discussion paper broadly aligns with that range. It says casinos are generally taxed at between 10% and 15% of gross gambling revenue, while the online betting industry is taxed at around 6% to 7% on winning bets or net gaming revenue.

Forvis Mazars specialists Devakalyani Moodley and Althea Soobyah warned that a standard GGR tax may duplicate provincial taxes and deepen regulatory complexity. They also cautioned that a withholding-tax model would be harder to enforce, especially where offshore operators or cryptocurrencies are involved.

Fast market growth adds pressure to regulate

The South Africa gambling tax debate comes as betting expands quickly. Stats SA said gross gambling revenue climbed 25.7% year on year to R59.3 billion in 2023/24, and that betting drove the jump while casino growth stayed flat.

At the same time, the legal framework remains unsettled. The National Gambling Board’s 2024/25 annual report says there is “no firm policy position” at national level on interactive gambling and notes an increase in illegal online gambling, much of it linked to offshore operators.

The 2024 Remote Gambling Bill seeks to create a national framework for licensing and regulating remote gambling, protecting minors and vulnerable people, and curbing crime and money laundering. Its explanatory memorandum says the lack of regulation has led to revenue and jobs being lost to other gambling jurisdictions.

Responses and enforcement concerns

Supporters of new gambling taxes see them as a way to expand revenue and address social harm linked to addiction and financial distress. However, experts warn that if the South Africa gambling tax becomes too heavy, players and operators may shift to unlicensed offshore sites instead.

That concern matches official enforcement warnings. The National Gambling Board says illegal online gambling has increased and that stronger enforcement, website blocking and a clearer legal framework are needed.