South African Gambling Groups Oppose Proposed 20 Percent Online Tax
A proposed 20% national online betting tax sparked opposition from the South African Responsible Online Gambling Association and Sun International. The organizations argue the measure could destabilize the regulated gambling sector and push players toward offshore sites. National Treasury announced the plan on November 25 seeking to introduce a 20% national levy on gross gambling revenue from online betting.
Tax Would Stack on Provincial Levies
The tax would be imposed in addition to existing provincial gambling taxes, potentially lifting the combined burden on operators to between 26% and 29%. Treasury argues rapid expansion of online gambling has outpaced South Africa’s regulatory framework creating gaps, increasing problem gambling risk. The National Gambling Board reports online betting drives around 75% of all wagering in the country.
SAROGA’s Wayne Lurie stated the National Treasury’s proposal for a new 20% national tax on online gambling is flawed. The organization argues the government wants to tax online gambling even though there is no proper law governing it. Lurie stated the proposal risks legitimizing illegal online gambling by taxing an activity that is still unlawful.
Industry Warns of Economic Impact
Sun International CEO Ulrik Bengtsson warned the tax would destabilize the legal gambling industry. He stated it is a pity Treasury did not consult with the industry or relevant regulators. Adding additional taxes to gambling will make the industry one of the highest taxed gambling industries in the world.
Sun International employs 7,000 people and invested $92.5 million in wages, contributing nearly $19.5 million in PAYE during 2024. The group invested $3.9 million in skills development and $1.38 million in corporate social initiatives. Sunbet reportedly generated $3.16 million in gaming taxes during the first half of 2025.
Bengtsson warned high taxes would drive players to offshore platforms which do not offer consumer protection or contribute to local employment. According to Sun International, $2.68 billion flowed out of South Africa in 2023/24 to offshore platforms. This represents about 62% of online gross gaming revenue, with the regulated sector facing competition from more than 2,000 offshore sites.
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