South Africa defers 20% online gambling tax decision to February 2027 Budget

South Africa will not reveal the completed shape of its planned 20% national online gambling tax before the February 2027 Budget, Finance Minister Enoch Godongwana said during the Medium-Term Budget Policy Statement on 21 October. Talks are still under way about how the levy would be designed, how it would connect with rules already in force and what it would mean for the provinces and the regulated market, Godongwana said, according to a Daily Investor report.

National Treasury first floated the idea in November 2025. The plan would impose a 20% national charge on gross gambling revenue earned from online betting and interactive gambling. Treasury has in the past projected that the measure could bring in over R10bn annually for the national government, although officials have stressed that collecting money is not its primary aim.

Christopher Axelson said Treasury views the measure in a similar way to a sin tax. He said the mechanism differs from alcohol and tobacco duties, which are charged per drink or per cigarette, and that companies would be taxed instead. Axelson said a reduction in online gambling because of the tax would be welcomed even if it reduced tax revenue.

Treasury initially invited public submissions until 30 January 2026 and extended the deadline to 27 February after stakeholders requested more time. Much of the criticism has focused on the fact that operators already pay provincial taxes, which average around 6% to 7% depending on the province. The proposed national levy would be added on top of those charges rather than replacing them.

Critics say the plan would weaken the position of licensed operators against rivals and drive part of the player base to offshore sites. The Free Market Foundation called the proposal “a naked revenue grab that threatens the very existence of the legal gambling market” and asked whether it is consistent with South Africa’s constitutional and regulatory setup, under which provinces take the lead in overseeing gambling.

Godongwana’s update made clear that talks will carry on over how the tax would ultimately be shaped, how it would sit alongside provincial rules and what effect it would have on the regulated gambling market, with the final call due next February.