South Africa Leaves 20% Gambling Tax Open Until February

Godongwana raised the issue during his Medium-Term Budget Policy Statement. The October speech offered no revised rate. Consultations on the impact on provinces and the regulated gambling market are still underway.

"An announcement of the final design will be made in the February 2027 Budget," the minister told Parliament.

Treasury Has Yet to Set the Final Rate

The 20% proposal dates back to November 25, 2025. National Treasury wants to collect the tax from online betting and interactive gambling operators, using gross gambling revenue (GGR) rather than betting turnover. GGR is calculated by subtracting winnings paid to players from the total amount wagered.

The first consultation deadline was January 30, 2026. Treasury later moved it to February 27. At the time, draft legislation was expected later in the year.

The South African Revenue Service’s 2026 budget guidance confirms that the proposal has not become law. The October statement puts the next announcement in February, without naming an implementation date.

R20M Extra Tax on R100M Annual GGR

For an online bookmaker with annual GGR of R100 million (about $6.11 million), the proposed 20% tax would amount to an additional R20 million (about $1.22 million) per year. At that GGR level, 15M calculates that each percentage point of the tax rate would represent R1 million (about $61,000) in annual tax.

The dollar figures use the European Central Bank’s October 21, 2026 exchange rates. The calculation assumes a full year at the same GGR and excludes provincial taxes, other liabilities and operating expenses.

Provincial Taxes Would Stay

South Africa is also preparing changes to gambling legislation and advertising controls. Those were covered in 15M’s earlier report on the regulatory reform.

The November 2025 proposal was for an additional national tax. South Africa’s provinces already collect gambling taxes, and Treasury has not proposed replacing them. How the new charge will work with provincial rules and existing licences remains under discussion.