Treasury's 20% Online Gambling Tax: Impact on SA Betting Sites
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National Treasury has proposed a 20% tax on the gross gambling revenue (GGR) of online gambling operators, a move that could reshape how South African betting sites operate and what bettors experience in terms of bonuses, odds, and payouts.
How the Tax Would Work
The proposed tax targets gross gambling revenue, which is the difference between total wagers placed and winnings paid out. In simpler terms, operators would pay 20% of what they keep after paying winners.
This 20% national tax would sit on top of existing provincial gambling levies, which currently range from 6% to 9% for online betting and 10% to 15% for casino gambling. With VAT, compliance costs, and annual licensing fees already in the mix, the combined tax burden on operators would be substantial.
The Revenue Argument
Treasury estimates the tax could raise up to R10 billion for the state. The proposal was outlined in a discussion paper published on 25 November 2025 and included in the 2026 Budget framework. Public comments were due by 27 February 2026.
The stated objective is not purely revenue-driven. Treasury has framed the tax as a tool to discourage problem and pathological gambling, alongside raising funds for the fiscus.
Industry Opposition
Opposition has been sharp and broad. Wayne Lurie, head of the South African Online Responsible Gambling Association (SAROGA), argues that imposing a national online gambling tax without first passing national online gambling legislation is "a shortcut around the hard questions."
The Free Market Foundation has called on Treasury to drop the proposal entirely, arguing it is unenforceable and constitutionally questionable. Sun International, one of South Africa's largest casino operators, has publicly criticised the plan.
Industry experts warn that the combined tax burden could push marginal operators out of business, drive bettors toward unlicensed offshore platforms, and ultimately reduce rather than increase tax revenue. According to a Forvis Mazars analysis, enforcement would require cooperation from operators, banks, and payment platforms to be effective.
What This Could Mean for Bettors
If implemented, the tax would likely affect bettors in several indirect ways:
- Smaller welcome bonuses: Operators facing higher tax bills may reduce promotional spending
- Tighter odds margins: Bookmakers could widen their margins to maintain profitability
- Fewer promotions: Reload bonuses, free bets, and loyalty programmes could be scaled back
- Market consolidation: Smaller operators may exit, reducing competition and choice
None of this is certain. The proposal is still in discussion phase, and significant political and legal hurdles remain. For now, all the promo codes and bonuses currently listed on MzansiWins remain active and unchanged.
Our Take
Regulating and taxing online gambling fairly is a reasonable policy goal. The concern is getting the balance right. A 20% GGR tax layered on top of existing provincial taxes, without a comprehensive national regulatory framework, risks pushing the market underground rather than bringing it into the light.
We'll update this article as the legislative process continues. In the meantime, you can compare current offers across all 44 licensed South African bookmakers on our betting sites page.