South Africa’s proposed 20% online betting tax faces industry pushback from major operators

South Africa’s plan to introduce a 20% national tax on online betting revenue has triggered strong opposition from key industry stakeholders, including the South African Responsible Online Gambling Association and Sun International.

The proposal, announced by the National Treasury on 25 November, forms part of a new discussion paper outlining a national levy on gross gambling revenue generated by online betting, in addition to existing provincial taxes. Officials argue the measure is needed to modernize tax structures, close regulatory gaps between provinces and strengthen public-interest protections in the fast-growing digital gambling market.

Industry groups, however, warn that the tax could destabilize the regulated ecosystem. The South African Responsible Online Gambling Association stated that the additional levy may reduce licensed operators’ competitiveness, increase compliance burdens and incentivize players to migrate to offshore betting platforms where enforcement is limited.

Sun International, one of the country’s largest gaming companies, echoed these concerns, noting that the combined effect of national and provincial taxes could push the total fiscal load to levels unsustainable for the industry. The company emphasized that excessive taxation risks harming investment, job creation and the broader transition toward a regulated digital betting environment.

The National Treasury has opened a public consultation period and will assess responses before finalizing the proposal. Analysts expect significant debate in the coming months as policymakers consider adjustments to avoid market distortions while still ensuring adequate tax collection and regulatory oversight.