Gambling tax plan questioned as NGB report shows R84bn revenue
New industry figures have prompted a gambling lawyer to question whether National Treasury's proposed extra 20% online gambling tax would protect jobs, provincial revenue and consumers.
National Treasury’s proposal for an extra 20% tax on online gambling is facing fresh questions after the latest National Gambling Board (NGB) annual report revealed how large the licensed industry has become, The Citizen reported.
Gambling attorney Garron Whitesman, of Whitesmans Attorneys, says the numbers show the government must prove the tax will work as intended without damaging the regulated sector or sending players to illegal websites.
What the NGB report shows
The report covers the 2025-26 financial year and was tabled in October. According to Whitesman, gross gambling revenue (wagers minus winnings paid out) climbed to R84.46 billion, compared with R74.5 billion the year before. Provincial gambling taxes grew to R6.44 billion from R5.8 billion.
Total turnover was about R1.76 trillion, against R1.5 trillion previously. Whitesman warned that turnover counts the full value of all bets, including winnings that are wagered again, so it does not reflect what people actually spend.
The report also lists about 13 328 casino workers and 12 230 people in bookmaking, roughly 25 500 direct jobs. Betting has driven most of the recent growth, while casinos, bingo and limited payout machines have stayed fairly flat.
The tax burden argument
Whitesman says licensed online operators already pay provincial gambling tax of around 6.5% of gross gambling revenue, plus VAT. He puts the combined effective burden at about 18% to 19%. An additional 20% national tax would lift that to roughly 38% to 39%, before company income tax and other business taxes.
He argues this could hurt investment, jobs and the competitiveness of licensed operators, pointing to the Netherlands and the United Kingdom after very high taxes were introduced there. He also says there is a risk that players will shift to offshore sites that pay no South African tax and offer no consumer protection. He also questions the constitutional and legal basis for a national tax, given the existing provincial system.
Problem gambling figures
The report records about R57.4 million paid to the National Responsible Gambling Foundation, which offers free help to people with gambling problems. Its toll-free line received about 1.26 million calls, many of them operational queries. Of 83 541 calls to the counselling line, about 5 443 were treatment-related, and 3 541 people were treated during the year.
Whitesman acknowledged that problem gambling can cause serious financial and social harm. He cautioned, however, that participation levels, call volumes and actual harm are not the same thing. He also said he doubts enough evidence has been offered to show that the tax would raise more revenue or reduce harm.
What this means for readers
- The extra 20% tax is still a proposal from National Treasury, and these views are those of one industry lawyer.
- The debate touches on provincial tax income, thousands of jobs and how players are protected.
- If you or someone you know is struggling with gambling, the National Responsible Gambling Foundation offers free help through its toll-free line.
This story is based on reporting by The Citizen.
