Treasury’s Proposed Online Gambling Tax: Industry Implications and Legal Challenges

Loading player...
South Africa’s gambling industry is facing a potential shake-up as Treasury proposes a new national tax on online gambling revenue. The sector is significant and growing rapidly, with R1.5 trillion wagered in the 2024/25 financial year and gross gambling revenue reaching R74.5 billion, marking a 25.6% increase from the previous year.

Betting dominates the market, accounting for three-quarters of total turnover, followed by casinos, LPMs, and bingo. The proposed tax aims to address what Treasury calls “negative externalities” social costs arising from problem gambling by reflecting these costs in the price of gambling activity.

Wayne Lurie, head of the South African Responsible Online Gambling Association (SAROGA), provides a critical industry perspective. He warns that the proposed tax could shift fiscal power to the national level without revisiting the National Gambling Act or provincial authority. Lurie highlights legal contradictions in taxing interactive gambling that is technically illegal and questions Treasury’s reliance on “negative externalities,” noting the absence of modelling for gambling-related harm or earmarked revenue for treatment and prevention. He cautions that high gross-revenue taxes may be passed on to players, reduce competitiveness for licensed operators, and drive activity offshore.
3 Dec 2025 2PM English South Africa Business News · Investing

Other recent episodes

CAREERS CORNER: Rebuilding job prospects after long-term unemployment

Long-term unemployment remains one of South Africa’s most serious labour market challenges, with millions of people out of work for a year or longer. Extended time away from employment can make it harder for job seekers to re-enter the workforce, but experts say there are ways to rebuild confidence and…
16 Mar 4PM 19 min

When can pension benefits be withheld?

Employers sometimes pursue civil or criminal action against employees accused of fraud or dishonesty, but can pension benefits be withheld while those cases are still pending? The law allows pension funds to withhold benefits in certain circumstances, provided trustees exercise their discretion carefully and fairly. Thato Makoaba, associate at Cliffe…
16 Mar 4PM 12 min

Skills needed to tackle South Africa’s water crisis

South Africa’s growing water crisis is not only about ageing infrastructure but also about the shortage of skilled professionals to manage and maintain critical systems. Training, technical expertise and workforce development are increasingly seen as key to strengthening water security. Dr Mmaphefo Thwala, Water Sector Manager at EWSETA, joins KayaBiz…
16 Mar 4PM 17 min

COSATU calls for urgent fixes to UIF and social grants

South Africa’s labour federation COSATU is warning that urgent action is needed to support struggling workers and businesses. The organisation is calling for improvements to the UIF Temporary Employment Relief Scheme, expansion of the Presidential Employment Stimulus, and adjustments to social grants to keep pace with inflation. COSATU parliamentary co-ordinator…
16 Mar 4PM 14 min

MTN returns to profit after difficult year

Africa’s largest telecoms operator, MTN Group, has staged a remarkable turnaround, reporting a profit of R27.4 billion for 2025 after a loss the previous year driven largely by currency volatility in Nigeria. The group has also surpassed 300 million customers and continues to invest heavily in network expansion and digital…
16 Mar 4PM 13 min