Pretoria: The National Treasury has issued a call for public input on a draft discussion paper proposing a new national online gambling tax. The paper suggests implementing a 20% tax on gross gambling revenue from online betting, which would be in addition to the existing provincial taxes.
According to South African Government News Agency, the draft paper provides an overview of the country's gambling industry, evaluates the current legislative framework, and examines international practices regarding the taxation of online gambling. The proposal aims to address the significant growth in online gambling and its societal impact by introducing a new tax structure.
The gambling sector has significantly shifted from traditional methods to online platforms, driven by technological advancements and increased internet access, particularly following the COVID-19 pandemic. This evolution has made gambling more accessible, raising concerns about problem gambling and related social issues that demand ongoing monitoring and regulation.
The National Treasury emphasized that while recreational gambling does not impose societal costs, problem gambling generates negative externalities that necessitate regulation or reduction in the public interest. The draft discussion paper has been made available on the National Treasury's website, and the public is invited to submit written comments via email to [email protected] by the end of business on January 30, 2026.