The National Treasury has extended the deadline for public comment on its proposed online gambling tax, amid growing concern over what it describes as an epidemic of gambling addiction in South Africa.
The closing date for submissions has been moved from 30 January 2026 to 27 February 2026, allowing stakeholders and members of the public additional time to respond to the proposal.
Comments can be submitted via email to gamblingtax@treasury.gov.za.
Rising Concern Over Online Gambling
While the risks associated with gambling addiction are well documented, Treasury noted that the rapid growth of online gambling has significantly worsened the problem.
Unlike traditional gambling, online platforms are accessible anywhere and at any time, making addiction harder to control.
Treasury also raised concern about the normalisation of gambling, pointing to its increasing association with sports sponsorships and cultural activities, which are heavily marketed by gambling companies.
Industry Growth Figures
According to the National Gambling Board, a total of R1.5 trillion was wagered in South Africa’s gambling industry during the 2024/25 financial year, representing 31.3% year-on-year growth.
Betting activities accounted for approximately 75% of total turnover, generating R1.126 trillion, while casinos contributed 19.5% of the total.
Over the past five years, all gambling modes recorded growth.
However, betting showed the most dramatic increase, with gross gambling revenue – turnover minus winnings – rising by 390% to R51.97 billion in 2024/25.
Proposed ‘Sin Tax’ on Online Gambling
In response to the surge in online betting and its social consequences, Treasury has proposed a 20% tax on gross gambling revenue from online betting, including interactive gambling.
The proposed national tax would be in addition to existing provincial taxes, resulting in a combined effective tax rate of between 26% and 29%.
Treasury noted that internationally, 11 jurisdictions already levy a 20% tax on gross gambling revenue, while 16 others charge even higher rates.
At current revenue levels, the proposed tax could generate more than R10 billion annually for the national government.
However, Treasury stressed that revenue generation is not the primary objective.
“The main objective of the reform would not be to raise further revenue, but rather to discourage problem and pathological gambling and their ill effects,” Treasury said.
The tax would function as a “sin tax”, similar to those imposed on alcohol and tobacco products, aimed at curbing harmful behaviour.
Treasury has urged the public, industry stakeholders and civil society organisations to make submissions before the revised deadline, noting that public input will play a key role in shaping the final policy outcome.
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