On 25 November 2025, the National Treasury published a draft discussion paper on a national online gambling tax for public comment. The gambling industry has evolved over the years from traditional forms of gambling to the greater use of online gambling. This has been influenced by technological advancements and increased access to the internet and electronic communication tools, especially following the COVID-19 pandemic. Gambling is now easily available online and accessible almost anywhere, at any time.
The growth of online gambling also brings challenges, such as problem gambling and social issues, which require continued monitoring and responsive 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 negative externalities, it is in the public interest that such behaviour be regulated or reduced.
The discussion paper therefore provides an overview of the gambling industry in the country, considers the current legislative framework and international practices on the taxation of online gambling and proposes a new national online gambling tax for South Africa.
