Treasury Releases Draft Online Gambling Tax Plan, Invites Public Input

“The growth of online gambling also brings challenges, such as problem gambling and social issues, which require continued monitoring and responsive regulation,” Treasury noted.

The National Treasury has called on members of the public, industry stakeholders, and civil society organisations to submit written comments on a newly released draft national online gambling tax discussion paper, signalling the start of a significant policy reform process in South Africa's fast-expanding digital gambling sector.

The proposal comes in response to the sharp rise in online gambling activity, driven by technological advancement, increased internet penetration, and changing consumer behaviour, particularly after the COVID-19 pandemic accelerated the use of mobile betting platforms and interactive gaming.

According to Treasury, the discussion paper evaluates the current regulatory landscape, provides an overview of domestic and global trends, and outlines the rationale for introducing a new 20% national tax on gross gambling revenue (GGR) generated through online betting. This tax would be imposed in addition to existing provincial gambling taxes, creating a dual-layered taxation regime intended to strengthen oversight and raise public revenue.

Why a national online gambling tax is being proposed

In announcing the paper, Treasury emphasised that while online gambling has become more accessible and convenient, it has also brought complex challenges, particularly around consumer protection, addiction, and the associated societal impacts.

"The growth of online gambling also brings challenges, such as problem gambling and social issues, which require continued monitoring and responsive regulation," Treasury noted. Recreational gambling, Treasury stated, typically does not impose burdens on society. However, problem gambling creates negative externalities—from family stress and financial distress to rising debt and related public-health concerns.

The introduction of a national tax is part of a broader strategy to manage the societal costs of addiction, improve regulatory enforcement, and ensure that the gambling industry contributes fairly to public resources. Treasury highlighted that international examples—ranging from the United Kingdom to Australia—show that national taxation frameworks can support stronger governance and enable governments to fund prevention and treatment programmes.

A growing and changing gambling landscape

South Africa's gambling industry has evolved significantly over the past two decades, expanding from traditional casinos, lotteries, and bookmakers to a dynamic digital betting ecosystem. Online sports betting, virtual gaming, and interactive casinos have become mainstream, supported by mobile apps, digital payment systems, and around-the-clock access.

The discussion paper warns that technology-enabled gambling presents several oversight challenges:

• Increased participation due to accessibility

• Cross-border gambling activities through offshore websites

• Difficulty in monitoring digital platforms hosted abroad

• Higher vulnerability among young people, who are increasingly exposed to online betting advertisements

• Limited coordination between provincial licensing authorities when dealing with online operators

Treasury argues that a national online gambling tax could help bolster enforcement, reduce regulatory loopholes, and support the development of a unified national approach to digital gambling.

International comparisons and policy lessons

The discussion document also reviews how other countries tax online gambling. Many jurisdictions apply:

• GGR-based taxes targeting gambling operators

• Player-focused levies on winnings

• Licensing fees for online platforms

• Centralised national regulation to harmonise consumer protection policies

Countries such as the UK, Spain, Denmark, and Australia have shifted towards more unified national tax systems to curb illicit operations and ensure better compliance—an approach Treasury says may hold important lessons for South Africa.

Public consultation process and next steps

The draft national online gambling tax discussion paper is now open for public comment until 30 January 2026, giving stakeholders more than a year to respond. This extended consultation period reflects the complexity of the issue and the anticipated need for feedback from industry players, provincial regulators, social-justice organisations, research institutions, and the public.

The document is available on Treasury's website at www.treasury.gov.za, and comments can be emailed to gamblingtax@treasury.gov.za.

Following the consultation phase, Treasury is expected to refine the proposal and engage further with the National Gambling Board, the nine provinces, and relevant parliamentary committees before drafting potential legislation.

Balancing revenue, regulation, and social impact

The proposal marks a significant moment in South Africa's effort to adapt its gambling policy to digital realities. Treasury emphasised that the primary objective is not only revenue generation, but also the creation of a regulatory environment that protects vulnerable groups, addresses addiction, and ensures that online gambling activity contributes positively to society.

By inviting public input, the government aims to shape a policy framework that balances economic opportunity with social responsibility—acknowledging that the evolution of gambling technology requires equally modern governance tools.