National Treasury Proposes 20% Tax on Online Gambling Revenue

Posted 27 January 2026 Written by Acts Online
Category Tax

Brought to you by SA Accounting Academy: National Treasury has published a discussion paper outlining a proposed national tax on online gambling revenue to address the rapid growth of the sector and its social impacts.

In terms of the regulatory framework established by the National Gambling Act, No. 7 of 2004, the National Treasury is seeking to introduce a 20% tax on gross gambling revenue (GGR) derived from online betting, including interactive gambling. GGR is calculated as total turnover minus winnings paid out to players. This proposal follows data from the National Gambling Board showing that R1.5 trillion was wagered in the South African gambling industry in 2024/25, with betting activities accounting for R1.126 trillion of that turnover.

The proposed reform is framed as a “sin tax” intended to discourage problem gambling. Treasury noted that while the National Gambling Amendment Act, No. 10 of 2008 provided a legal basis for the regulation of interactive gambling and electronic communication wagering, many of its provisions have not yet been fully implemented. The new tax is projected to yield over R10 billion in additional revenue for the national government based on current GGR levels.

Key Statistics and Legislative Context

  • The betting sector experienced a 390% increase in gross gambling revenue to R51.97 billion in the 2024/25 financial year.
  • Betting activities now represent approximately 75% of total gambling turnover in South Africa.
  • The National Gambling Act, No. 7 of 2004 currently sets uniform norms and standards for provincial and national regulation, which this proposal seeks to augment through national taxation.

The original deadline for public comments was 30 January 2026, but this has been extended. Stakeholders now have until 27 February 2026 to submit representations on the proposed tax structure and its implementation.

Click here to download the Discussion Paper — National Gambling Tax.

What this means for you, your business, or your clients

  • For yourself: Professional advisors must stay apprised of the evolving “sin tax” landscape and the potential for new national levies to be introduced outside of traditional excise duties.
  • For your business: Accounting and tax practices serving the fintech or gaming sectors should prepare for enhanced reporting requirements and the integration of GGR-based tax calculations into compliance workflows.
  • For your clients: Online betting operators and interactive gambling platforms must evaluate the impact of a 20% GGR tax on their margins and consider submitting comments to National Treasury before the 27 February 2026 deadline.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-online-gambling-discussion-paper

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