Treasury’s Proposed Online Gambling Tax: Industry Implications and Legal Challenges

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South Africa’s gambling industry is facing a potential shake-up as Treasury proposes a new national tax on online gambling revenue. The sector is significant and growing rapidly, with R1.5 trillion wagered in the 2024/25 financial year and gross gambling revenue reaching R74.5 billion, marking a 25.6% increase from the previous year.

Betting dominates the market, accounting for three-quarters of total turnover, followed by casinos, LPMs, and bingo. The proposed tax aims to address what Treasury calls “negative externalities” social costs arising from problem gambling by reflecting these costs in the price of gambling activity.

Wayne Lurie, head of the South African Responsible Online Gambling Association (SAROGA), provides a critical industry perspective. He warns that the proposed tax could shift fiscal power to the national level without revisiting the National Gambling Act or provincial authority. Lurie highlights legal contradictions in taxing interactive gambling that is technically illegal and questions Treasury’s reliance on “negative externalities,” noting the absence of modelling for gambling-related harm or earmarked revenue for treatment and prevention. He cautions that high gross-revenue taxes may be passed on to players, reduce competitiveness for licensed operators, and drive activity offshore.
3 Dec 2PM English South Africa Business News · Investing

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