South Africa is discussing a proposal from the National Treasury to introduce a 20% national GGR tax on online betting and interactive gambling. The new levy would be added on top of existing provincial taxes and is raising concerns within the regulated market.
Market Snapshot
🔵 Total betting volume in the 2024−2025 fiscal year reached $ 87 billion (+30% YoY)
🔵 Lotteries and online sports betting are the most popular verticals
🔵 The majority of players are aged 25−34
🔵 90% of South Africans have participated in gambling
🔵 Young South Africans spend on average 41% of their income on betting — more than on food
Key Points
🔴 The new 20% tax is expected to generate around $ 580 million in additional revenue
🔴 The main goal of the initiative is to "curb problem and pathological gambling and its negative consequences"
🔴 The total tax burden for online operators would approach 30%
🔴 There is still no unified online gambling law; regulation remains fragmented
Legal Risks
🔵 Interactive gambling is still illegal under current legislation, yet its revenues are proposed to be included in the tax base
🔵 The Constitution assigns key authority to the provinces, and introducing a central tax could violate this principle
🔵 The existing distribution of powers between provinces (licensing, oversight, local taxes) may be weakened
Market Concerns
🔴 No assessment of social harm or transparent methodology behind the tax rate
🔴 Tax revenues are not earmarked for addiction treatment, research, or stronger oversight
🔴 High tax rates combined with weak enforcement increase the risk of player migration to offshore operators
Conclusion
Experts agree that regulation should come before additional taxation. The market needs harmonized rules, a clear legal framework, and economically justified decisions — otherwise, the 20% online tax may reshape the industry in favor of illegal operators.
🔵 Total betting volume in the 2024−2025 fiscal year reached $ 87 billion (+30% YoY)
🔵 Lotteries and online sports betting are the most popular verticals
🔵 The majority of players are aged 25−34
🔵 90% of South Africans have participated in gambling
🔵 Young South Africans spend on average 41% of their income on betting — more than on food
Key Points
🔴 The new 20% tax is expected to generate around $ 580 million in additional revenue
🔴 The main goal of the initiative is to "curb problem and pathological gambling and its negative consequences"
🔴 The total tax burden for online operators would approach 30%
🔴 There is still no unified online gambling law; regulation remains fragmented
Legal Risks
🔵 Interactive gambling is still illegal under current legislation, yet its revenues are proposed to be included in the tax base
🔵 The Constitution assigns key authority to the provinces, and introducing a central tax could violate this principle
🔵 The existing distribution of powers between provinces (licensing, oversight, local taxes) may be weakened
Market Concerns
🔴 No assessment of social harm or transparent methodology behind the tax rate
🔴 Tax revenues are not earmarked for addiction treatment, research, or stronger oversight
🔴 High tax rates combined with weak enforcement increase the risk of player migration to offshore operators
Conclusion
Experts agree that regulation should come before additional taxation. The market needs harmonized rules, a clear legal framework, and economically justified decisions — otherwise, the 20% online tax may reshape the industry in favor of illegal operators.