Business · South Africa
South Africa’s 20% Online Gambling Tax Faces Criticism
TechCentral · 2026/02/20
Summary
The Free Market Foundation (FMF) has criticized the South African Treasury's plan to introduce a 20% tax on online gambling. The FMF believes this high tax could harm provincial governments by reducing their overall gambling revenue. Additionally, they warn that it might encourage bettors to turn to illegal offshore gambling sites that are not taxed, which would reduce the money flowing into the country’s economy. The FMF's concerns highlight the risk of increased illegal gambling activities if the government sets the tax rate too high. This debate is important because gambling taxes are a key source of income for provinces, which use the funds for public services. However, setting the right tax rate is crucial to balance revenue generation with preventing the growth of unregulated gambling markets.
OnABudget takeaway: For everyday South Africans, a high online gambling tax could mean less money goes to public services, but it might also push people to illegal gambling platforms where they have less protection. Small business owners and investors in legal gambling should watch this closely as changes could affect the industry’s future.