South Africa Proposes 20% Tax on Online Betting Revenue

South Africa's online sports betting industry is entering a critical phase as it faces increased regulatory scrutiny, particularly from the National Treasury's proposed 20% national tax on gross gambling revenue (GGR). This proposal, which closed for public comment in February 2026, aims to raise state revenue and tackle concerns related to problem gambling.

The implications of this tax are profound; it introduces substantial cost pressures for operators and could alter the value of online bets for punters. The gambling sector has seen rapid growth, with GGR rising from approximately R32 billion in 2019/20 to around R75 billion in 2024/25, primarily driven by sports betting.

Factors contributing to this growth include widespread smartphone adoption, live and in-play betting markets, and strong engagement with sports like football, rugby, and cricket. The proposed tax's structure is significant as it applies to GGR rather than profits, potentially squeezing margins for operators, whose sportsbook margins typically range from 5% to 10%.