The 2026 National Budget has reignited a fierce policy battle over the future of gambling regulation in South Africa, with the National Treasury’s proposal for a 20% national online gambling tax drawing both praise and criticism.
RISE Mzansi said the tax is overdue but warns it must be complemented by tougher rules, equitable revenue sharing, and aggressive action against illegal operators or risk becoming yet another missed opportunity to curb the country’s gambling crisis.
This follows the National Treasury’s publication of a draft national online gambling tax discussion paper in November 2025, with the public comment period having closed on February 27, signalling the government’s consideration of a new national levy on online betting.
RISE Mzansi National Assembly Whip Makashule Gana said South Africa is currently facing a gambling crisis. While the proposed national online gambling tax is a crucial first step, he stressed that it must be accompanied by structural reforms to protect vulnerable communities and strengthen provincial oversight.
“To ensure the new tax regime delivers both social and economic benefits, we have submitted key recommendations to the National Treasury. These include revenue sharing with provincial governments so that provinces, which often bear the social costs of problem gambling, have adequate resources to respond.”
He also recommended a provincial tax floor of 8% to prevent a “race to the bottom” in tax rates, suggesting a slight adjustment of the national online gambling tax from 20% to 17% to create a fair and uniform framework across the country.
However, Gana warned that the tax alone would not be enough to curb the harms of online gambling. He called for mandatory national licensing for all online operators, pointing out that “under the current system, bookmakers can ‘pick and choose’ their provincial regulator, creating loopholes and uneven oversight.” A national licensing mandate, he said, would give authorities like the National Gambling Board a comprehensive view of operations and ensure uniform compliance across the country.
Gana also stressed the importance of using the revenue for social good.
“The National Treasury estimates that a 20% tax could generate roughly R10 billion. RISE Mzansi proposes that these funds be ringfenced to support social infrastructure, rehabilitation programmes, education, and the work of the South African Responsible Gambling Foundation. Revenue from gambling must serve the people, not just the industry,” he adedd.
Gana stressed that the new tax must be paired with aggressive action against illegal operators, including stronger enforcement by banks, requiring ISPs to block unlicensed gambling sites, and engaging search engines like Google Africa to remove illicit platforms.
“RISE Mzansi is committed to a South Africa where the health and financial stability of our people take priority over the unchecked growth of the gambling industry,” he said.
The growing crisis is not only a policy issue but a human one. The Star previously reported that NSFAS and the National Gambling Board have joined forces to tackle the alarming rise in student gambling.
Acting NSFAS CEO Waseem Carrim warned that diverting study allowances to betting puts students’ academic futures and financial wellbeing at serious risk.
The initiative focuses on safeguarding public education funds while promoting responsible financial decision-making, using campus workshops, early intervention, and awareness campaigns to ensure that education funds support learning, not gambling.
The Star
masabata.mkwananzi@inl.co.za
