South Africa’s online gambling tax plan reaches a critical milestone

South Africa’s online gambling tax proposal remains under discussion, with Finance Minister Enoch Godongwana confirming that government will reveal its final approach in February 2027.

Speaking during the Medium-Term Budget Policy Statement in Parliament on 21 October, Godongwana said consultations were continuing on how the tax would fit alongside existing gambling rules and provincial revenue arrangements.

The proposal is not yet law. National Treasury’s 2025 discussion paper suggested a 20% national levy on gross gambling revenue from online betting and interactive gambling, in addition to existing provincial taxes. Gross gambling revenue is the amount wagered minus winnings paid to players; the proposal is not a confirmed 20% charge on every customer’s stake or payout.

Why the proposal matters

The tax debate comes as online betting grows. According to SARS’ 2026 Budget FAQs, South Africa’s gross gambling revenue reached R74.5 billion in 2024/25, up 25.6% on the previous year. Sports betting revenue grew 390% over five years.

Treasury has said submissions generally recognised the need to address online gambling’s growth and related harm. The February announcement should clarify the proposed design, though it will not necessarily mark the tax’s start date. Any eventual effect on bettors will depend on the final framework and how operators respond.