South Africa Considers a 20 Percent Tax on Online Gambling
South Africa is weighing a 20 percent tax on online gambling, a move that signals growing concern about addiction and financial stress across the country. Online betting has expanded rapidly, with constant advertising, celebrity endorsements, and easy app-based access reshaping how people gamble. What used to require a trip to a casino can now be done on a phone in seconds.
Recent national data shows how deep the problem runs. More than half of working adults gamble, and the lowest-income earners spend about R2,000 a month on betting. According to analysts, around R1.5 trillion moved through gambling platforms in the previous financial year. This scale has pushed government to consider stronger regulation. Treasury estimates a 20 percent levy could generate close to R10 billion. But the goal is less about revenue and more about slowing harmful behaviour.
Anchors Francis Herd and Melissa Tighy highlight the impact on young people. Research suggests that many under 35 gamble regularly, and some lose nearly half their income to online platforms. This trend undermines long-term financial stability. When young people avoid saving, even small amounts, they miss out on future benefits. Instead of building assets, they fall into debt.
One concern is that the new tax will ultimately fall on consumers. Platforms are likely to adjust their payouts, odds, or minimum bets to recover the levy. This means gambling becomes more expensive while the likelihood of winning decreases. For people already trapped in betting habits, losses could rise even faster.
The ease and visibility of gambling also play a major role. Online betting companies sponsor competitions, radio segments, and sports teams. High-profile personalities promote the platforms, creating the sense that gambling is harmless entertainment. In reality, many people are losing significant amounts without noticing the long-term effects. The anchors recall examples from traditional casinos, where people lost household furniture and never returned to reclaim it. Online platforms remove even the physical signs of loss.
Gambling associations promote responsible gambling, but the scale of online betting makes regulation difficult. Casinos can observe behaviour directly. Online platforms cannot see who is losing their salary, pension, or savings. That gap makes oversight harder and increases the need for greater accountability.
The proposed 20 percent tax is one step toward addressing these risks. It signals government’s recognition that addiction is rising, debt is growing, and the poorest households are carrying the biggest burden. The measure also raises questions about consumer protection, advertising practices, and the social cost of easy access to gambling.
If implemented, the levy will form part of a wider debate about how South Africa manages online betting in a digital era. The urgency lies not in raising revenue, but in reducing harm and creating safer financial behaviour for the future.