New national tax coming to South Africa in 2027

South Africa is preparing to introduce a proposed national online gambling tax, with Finance Minister Enoch Godongwana confirming that the final design will be announced in the February 2027 Budget.

The proposed tax aims to address the rapid growth of online gambling and its associated social harm while potentially generating billions of rands in additional revenue for the government. However, the measure is not yet law, and important details remain under discussion.

The National Treasury proposed a 20% tax on gross gambling revenue generated by online gambling, including online betting and interactive gambling, in a discussion paper published in November 2025.

Gross gambling revenue generally refers to the money gambling operators retain after paying out winnings, rather than the total amount wagered by customers.

The proposed national tax would be imposed on top of existing provincial gambling taxes. This means gambling operators could face a higher overall tax burden if the proposal is implemented as originally outlined. The final structure, however, could change following consultations.

According to reporting by Daily Investor, Treasury estimated that the proposed measure could generate approximately R10 billion in additional annual revenue. The government has also presented the tax as a way to discourage harmful gambling behaviour, rather than simply as a means of raising money.

Online betting has grown significantly in South Africa, with digital platforms making gambling increasingly accessible to consumers.

The government wants to respond to concerns about gambling-related harm while ensuring that the industry contributes more towards public finances.

During the Medium-Term Budget Policy Statement on 21 October 2026, Godongwana said consultations were continuing on the tax’s design, its relationship with the existing regulatory framework, and its implications for provincial governments and the regulated gambling market.

The minister confirmed that the final design would be announced in the February 2027 Budget.

Although the proposed tax is aimed at gambling operators, its eventual impact on consumers remains uncertain.

Companies could respond to higher taxes in different ways, including adjusting betting odds, reducing promotions or changing other aspects of their services. Whether any of these changes occur will depend on the final tax structure and how operators respond.

The gambling industry has also raised concerns that a higher tax burden could push some consumers towards unlicensed offshore gambling websites. Such a shift could make it harder for regulators to protect consumers and enforce existing gambling laws.

These concerns are among the issues that policymakers will need to consider when finalising the proposal.

The National Treasury is continuing consultations on the proposed national online gambling tax. The government has not yet confirmed a final rate, implementation date or detailed collection mechanism.

The February 2027 Budget is therefore the next major milestone for the proposal. Until the government finalises the design and the necessary legal steps are completed, the proposed 20% levy should not be treated as an existing tax.

If implemented, the measure would add a national layer of taxation to an industry already subject to provincial levies, potentially changing the cost of operating online gambling businesses in South Africa.

For now, gambling operators, provincial authorities and consumers will have to wait for the government’s final announcement before the full financial implications become clear.

Sources: New national tax coming to South Africa in 2027 – Daily Investor

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