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National Treasury: Online Gambling – discussion paper
- 27 January 2026
- Tax
- South African Accounting Academy
Summary:
National Treasury has published a discussion paper, setting out the case for a national online gambling tax – ultimately proposing a 20% tax on revenue from online betting.
Article:
The original deadline for comments was 30 January 2026, and has now been extended to 27 February 2026.
The South African gambling sector is a diverse and regulated industry, which includes casinos (i.e. tables and slots); betting on horse racing, sport and other contingencies (offered by bookmakers and totalisators, on and of course); Limited Payout Machines (LPMs); and bingo (traditional and Electronic Bingo Terminals (EBTs)).
While the addiction risk regarding gambling is well known, the recent rise of online gambling has meant that it is accessible almost anywhere, at any time, which allows the addiction to grow.
National Treasury also noted that online gambling has been normalised via new commercial associations with sport and cultural activities that are now heavily promoted by gambling companies.
According to statistics from the National Gambling Board, R1.5 trillion was wagered in the South African gambling industry in 2024/25, representing 31.3% year-on-year growth. Most of the turnover, around 75%, came from betting activities, generating R1.126 trillion. The next-largest share was 19.5% for casinos. Over the past 5 financial years, all gambling modes experienced growth. However, betting experienced a massive 390% increase in gross gambling revenue (turnover minus winnings) to R51.97 billion in 2024/2025.
Due to the surge in online gambling and its impact on society, the National Treasury proposed that a 20% tax be applied on gross gambling revenue from online betting, including interactive gambling.
At current levels of gross gambling revenue, the 20% tax on gambling would yield over R10 billion in additional revenue for the national government.
National Treasury said that 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.
The new tax would effectively be a “sin” tax on gambling, much like the additional taxes the National Treasury imposes on alcohol and tobacco products.
The National Gambling Act 2004 establishes certain uniform norms and standards applicable to national and provincial regulation and licensing of certain gambling activities.
The National Gambling Amendment Act 2008 was introduced which would have provided a legal basis for the regulation and control of all gambling activities in the country. It further broadened the scope by providing for interactive gambling under the licensing regime and the introduction of subordinate legislation. It also would have allowed people to participate in betting and wagering by means of electronic communication. It provided for implementing regulations was legislated but has not yet been implemented.
Click here to download the 24-page document:
Relevance to Auditors, Independent Reviewers & Accountants:
- The National Gambling Act (and Amendment Act) is yet another piece of legislation that your relevant national and provincial departmental clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor and independent reviewer, you need to consider and assess compliance of entities and individuals with the National Gambling Act.
- Practitioners should be aware of the latest guidance that has been published by National Treasury.
Relevance to Your clients:
- All entities and individuals must comply with the National Gambling Act (and Amendment Act).
- All relevant entities and individuals should be aware of the latest guidance that has been published by National Treasury.