South Africa’s National Treasury recently released a discussion paper proposing a 20 per cent national tax on gross gambling revenue (GGR) from online betting and future interactive gambling activities. The levy would apply alongside existing provincial gambling taxes, potentially lifting operators’ effective tax burden to between 26 per cent and 29% per cent.
The move comes amid rapid expansion of online gambling, which Treasury says has surpassed the scope of South Africa’s regulatory framework and heightened risks around problem gambling and unlicensed offshore operators. National Gambling Board data indicates gambling turnover reached R1.5 trillion in 2024/25, with betting accounting for 75 per cent of activity. Online channels generated 85.5% of the R51.97bn in betting GGR.
Sun International has raised concerns that additional taxation could undermine the domestic industry’s competitiveness. The company argues that higher taxes cannot be passed directly to consumers due to VAT treatment unique to South Africa’s gambling sector, increasing pressure on licensed operators’ margins. Sun International says elevated tax rates may reduce investment capacity for new technology, products and staffing, making it harder for local operators to compete with offshore platforms.
Sun International highlighted its economic contribution during 2024, including employment of 7,000 people, R1.9bn in salaries, nearly R400m in PAYE and around R80m in skills development and training. The group reported that SunBet generated R65 million in gaming taxes in the first half of 2025. The company says a sustainable and predictable regulatory framework would strengthen its ability to invest domestically while reducing offshore leakage.
The Treasury discussion document is open for public comment and is expected to inform broader reforms aimed at establishing a national regulatory approach to online gambling.
The post South Africa weighs online gambling tax as Sun International warns of impact appeared first on G3 Newswire.
South Africa’s National Treasury recently released a discussion paper proposing a 20 per cent national tax on gross gambling revenue (GGR) from online betting and future interactive gambling activities. The levy would apply alongside existing provincial gambling taxes, potentially lifting operators’ effective tax burden to between 26 per cent and 29% per cent. The move…
The post South Africa weighs online gambling tax as Sun International warns of impact appeared first on G3 Newswire.