South Africa’s Proposed Online Gambling Tax Awaits Final Decision in 2027 Budget
SOUTH AFRICA– South Africa’s proposed national tax on online gambling remains under review, with the government expected to reveal the final framework in the February 2027 Budget, according to Finance Minister Enoch Godongwana.
The proposal, first published by the National Treasury in November 2025, would introduce a 20 percent tax on gross gambling revenue (GGR) generated from online betting and interactive gambling activities. The levy would be applied in addition to existing provincial gambling taxes, raising questions about its impact on licensed operators and the current regulatory structure.
In his Medium-Term Budget Policy Statement on October 21, 2026, Godongwana said consultations on the tax proposal are continuing. He noted that submissions received in response to Treasury’s discussion paper broadly acknowledged the need to address the rapid growth of online gambling and its associated social harms.
According to the minister, ongoing discussions are focused on the tax’s design, its relationship with South Africa’s existing gambling regulations, and its potential implications for provincial governments and the regulated gambling market. A final announcement is expected when the 2027 national budget is presented.
The original discussion paper proposed a 20 percent tax on online gambling revenue, including interactive gaming products. Treasury noted that current provincial taxes on online betting generally range between 6 and 7 percent, depending on the jurisdiction. Based on its estimates, the proposed national levy could generate more than R10bn (US$610m) in additional annual revenue.
The proposal has attracted criticism from both legal experts and industry stakeholders. Opponents have questioned whether the tax aligns with South Africa’s constitutional framework and warned that an additional national levy could place licensed operators at a competitive disadvantage. Industry groups, including Sun International and the South African Responsible Online Gambling Association (SAROGA), have argued that higher taxation could encourage consumers to migrate to unregulated offshore gambling platforms.
In response to stakeholder feedback, Treasury extended the public consultation period in early 2026 to allow for additional submissions. Although that process has now closed, consultations on the policy’s final structure continue.
For now, the proposed 20 percent rate remains under consideration and has not been formally adopted. Further details, including any implementation timeline, are expected to be clarified in the February 2027 Budget announcement.
