The National Treasury has invited the public to comment on a draft national online gambling tax discussion paper, which proposes a new tax structure in response to the rise of online betting across South Africa.

According to the South African Government News Agency, the proposal introduces a 20% tax on gross gambling revenue generated from online betting, including interactive gambling. This tax would be applied in addition to existing provincial gambling taxes.

Treasury said the discussion paper outlines the current state of the gambling industry, examines the legislative framework and international practices, and presents options for implementing a national online gambling tax.

Over the years, gambling habits have shifted significantly from traditional physical venues to digital platforms.

Technological developments, increased internet access, and accelerated online adoption following the Covid-19 pandemic have made gambling more widely accessible at any time and from almost any location.

While online gambling continues to grow, the Treasury noted that it also brings social challenges, including problem gambling. These issues, it said, require ongoing monitoring and effective regulation.

“From a public policy perspective, there should be no problem with recreational gamblers as they do not place any external costs on society.

“However, to the extent that problem gambling imposes a cost on society, it is in the public interest that such behaviour be regulated or reduced,” the Treasury’s statement read.

The draft discussion paper is available on the National Treasury website, and the public is encouraged to submit written comments by the close of business on January 30.

Written submissions can be sent to gamblingtax@treasury.gov.za
Source: South African Government News Agency (SAnews.gov.za)