South Africa Extends Public Consultation on Proposed 20% Online Gambling Tax

South Africa’s National Treasury has extended the deadline for public submissions on its proposal to introduce a 20% national tax on online and interactive gambling revenue, granting stakeholders an additional month to comment before Finance Minister Enoch Godongwana presents the 2026 Budget.

The move follows requests from interested parties for more time to assess and respond to the proposal.

Treasury initially invited public comment after releasing a draft discussion paper on 25 November 2025, setting an original submission deadline of 30 January 2026. That deadline has now been pushed back to 27 February 2026. Notably, Godongwana is scheduled to deliver the National Budget Speech on 25 February 2026, meaning the consultation period will extend beyond budget day itself.

The proposed measure would apply to gross gambling revenue (GGR) generated from online betting and interactive gambling activities. Treasury has estimated that the tax could generate approximately R10 billion per year and would be imposed in addition to the gambling taxes already levied at provincial level.

While the potential revenue is substantial, Treasury has stressed that the proposal is not intended solely as a revenue-raising exercise. In its discussion paper and accompanying briefings, the department has argued that the primary objective is not just to collect additional funds, but to curb the social harm associated with the rapid growth of online gambling.

Treasury has linked the proposed tax directly to the swift expansion of digital gambling platforms and the risks they pose, particularly in an economy where individuals may be more inclined to pursue quick financial gains. According to the department, increased participation in online gambling can exacerbate financial stress and contribute to broader social damage if left unchecked.

The decision to extend the consultation period comes at a time when political parties in Parliament are sharpening their positions on potential new taxes. During debates surrounding the Mid-Term Budget Policy Statement, several parties indicated they would oppose measures that place a direct burden on households. At the same time, some Members of Parliament have argued that the online gambling sector, which is experiencing rapid growth and high transaction volumes, should shoulder a greater share of the tax burden.

Rise Mzansi MP Makashule Gana has publicly supported the proposal and rejected claims from segments of the gambling industry that a national gambling tax would be unconstitutional. “We will not rest as Rise Mzansi until there are proper gambling reforms that protect lives and livelihoods because no nation has ever gambled itself to prosperity.”

Treasury has acknowledged that resistance from the industry is inevitable. A 20% national levy would represent one of the most far-reaching changes to South Africa’s online betting tax regime in recent years. The department’s position, however, is that the online gambling sector has expanded rapidly and generated sufficient social consequences to justify decisive government intervention, even in the face of industry opposition.

For now, the proposal remains at the draft stage, with the revised consultation deadline set for 27 February 2026. Although the Budget Speech on 25 February will draw significant attention, the more consequential debate may follow, as Treasury considers whether to proceed with the full 20% levy, adjust the rate, phase in the tax, or substantially revise the proposal in response to legal arguments and industry feedback.

By fLEXI tEAM