South Africans React to National Treasury's Proposed 20% Tax on Online Gambling
- The National Treasury has released a discussion paper proposing a 20% tax on online gambling
- The department states that this measure is intended to address the growing negative effects of gambling on society
- South Africans have reacted strongly to this proposal, with supporters acknowledging the social harms while opponents argue that it unfairly imposes another tax on ordinary citizens
Source: Getty Images
JOHANNESBURG- The Department of National Treasury released its discussion paper on Tuesday, 25 November 2025, in which it proposed a 20% tax on online and interactive gambling.
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Treasury explained that the surge in online gambling and its visible impact on society necessitate the proposed tax.
National Treasury addresses the harm done by gambling on society.
The paper discusses the rapid rise of online gambling and the societal harms associated with it.The evolving nature of online gambling, especially with the use of smartphones, has made it accessible anytime and anywhere. The department emphasizes that this presents a significant societal problem, particularly given South Africa's high unemployment rate and the increased financial strain it places on vulnerable individuals.
"From a public policy perspective, there should be no issue with recreational gamblers, as they do not impose any external costs on society. However, to the extent that problematic gambling creates societal costs (negative externalities), it is in the public interest to regulate and mitigate such behavior," the paper reads.
The paper has been released for public comment, and citizens have until 30 January 2026, to send their feedback via email.
The rise of online gambling in South Africa
Source: Getty Images
Online gambling is a booming industry in South Africa, accounting for more than R59 billion in gross gaming revenues. It has experienced explosive growth over the past five years, with the COVID-19 pandemic drawing new players to online betting. Statistics SA reported that gambling in South Africa has increased by 65% compared to 2017, with the Free State, Northern Cape, and KwaZulu-Natal provinces reporting the highest gambling activity. Many users admit to gambling beyond recreational purposes, often driven by financial strain.
South Africans shared varied reactions to the proposed tax
@TomHarry1878 said:
"Gambling on banking apps, too, must be stopped. The banks make a killing on it, but at a high societal cost"
@TaisaPT commented:
"A total gambling ban is NOT unreasonable, right..."
@lungsta_mk stated:
Online gambling has gone out of hand, but this approach is ineffective... the house will pass this down to the desperate gambler, and no gambling will be curbed.Do people smoke and drink less as sin taxes increase every year?"
@BMashabane said:
"The reason is the high unemployment rate. Let people gamble freely so they can put bread on the table, or rather, create job opportunities. Imposing tax is not a solution, but it puts strain on people who are already suffering."
@Karabo_Mokgoko commented:
"There’s a show about confronting family members who are addicted to gambling. That is an indicator that it’s becoming a big problem."
Popular media personality shared his struggles with a gambling addiction
In related news, popular South African media personality Sol Phenduka recently opened up about the impact of gambling on his life. He shared his struggles with gambling addiction, almost losing everything before seeking rehabilitation. He advised those who choose to gamble to do so responsibly.
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Source: Briefly News
