CAPE TOWN - South Africans who gamble online could soon see changes as government explores the proposal of a national online gambling tax.
However, authorities have not yet signed on the dotted line yet.
Finance Minister Enoch Godongwana said consultations are underway around this proposal; including the proposed tax design, its linkages to the existing regulatory framework and the implications for provinces and the currently regulated market.
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Godongwana, who delivered the Medium-Term Budget Policy Statement in Parliament on Wednesday, said the final design will be made in the February 2027 Budget.
“The submissions received generally recognised the need to address the growth of online gambling and its associated harm,” he said.
The proposal follows a discussion paper published by National Treasury last year.
The discussion paper stated that, due to the surge in online gambling and its impact on society, Treasury proposed that a 20% tax be applied to gross gambling revenue from online betting, including interactive gambling.
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Meanwhile, Treasury has reported a stronger-than-expected revenue outlook for the current financial year, 2026/2027.
According to Godongwana, gross tax revenue for this year has been revised upwards by R17.1 billion compared with the February estimate.
The increase is largely due to higher collections from corporate tax, dividends tax and VAT.
Additionally, a larger portion of this improvement was attributed to higher commodity prices,.
Treasury said overall, gross tax revenue is projected to increase from R2.14 trillion this year to R2.53 trillion in 2029/30.