😱 Gambling tax increase in South Africa🇿🇦: proposed changes could significantly raise operators’ tax burden

😱 Gambling tax increase in South Africa🇿🇦: proposed changes could significantly raise operators’ tax burden

Considering all levies already paid by licensed operators at the regional level, the total tax burden could rise to 39%.

🔣 Details: the current structure includes a provincial tax of 6.5% on online betting gross gaming revenue (GGR), alongside 15% VAT applied to the same base. Even after factoring in recoverable VAT expenses, the effective combined rate is estimated at around 18–19%.

🔣 Potential increase: the overall burden could rise to 38–39% if a national tax of 20% on GGR is introduced. Industry stakeholders have warned that such a level would be disproportionately high and could undermine market sustainability.

🔣 Context: South Africa, the most developed economy on the continent and a Tier 2 market, raised the possibility of increasing the tax in late November 2025, stating that the measure could generate approximately 596 million USD in revenue during the fiscal year.

🔣 Market data: according to the National Gambling Board (NGB), total wagers reached $89 billion in the 2024/2025 fiscal year, marking a 31.3% year-on-year increase. Sports betting accounted for 75% of the total, followed by casinos(19.5%), LPM machines (3.6%) and bingo (1.8%). Growth has also been supported by expanding internet access, with approximately 50 million users in 2025, up from 36.5 million in 2020.

🔣 Social perspective: the Free Market Foundation (FMF) noted that the growth of online gambling is closely linked to the country’s socio-economic pressures, which are driving some individuals to seek alternative sources of income.

🔣 Timeline: public consultations on the proposed tax changes, initially set to close on January 30, were extended until February 27. A seminar involving government officials and industry stakeholders is expected, after which a draft bill will be prepared and advanced through the legislative process.

👉 Legislative background: the National Gambling Amendment Bill (2008) has yet to be enacted, leaving the sector operating within a fragmented and incomplete regulatory framework.

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