Online gambling tax: final design due in the February 2027 Budget

Finance Minister Enoch Godongwana says the final design of the proposed national online gambling tax will be announced in the February 2027 Budget. Consultations on the 20% proposal are still under way.

By Sipho Khumalo, published 2026-10-23. Fact-checked by Nomvula Dube.

Finance Minister Enoch Godongwana told Parliament on Wednesday 21 October that the final design of the proposed national online gambling tax will be announced in the February 2027 Budget, ITWeb reported. He made the statement while presenting the Medium Term Budget Policy Statement (MTBPS).

"Consultations are ongoing on the proposed tax design, its linkages to the existing regulatory framework, and the implications for provinces and the currently regulated market," he said, as quoted by MyBroadband. He added that submissions "generally recognised the need to address the growth of online gambling and its associated harm", eNCA reported.

Where the proposal stands

StageDetail
Discussion paperPublished by National Treasury in November 2025
Proposed rate20% of gross gambling revenue from online betting and interactive gambling
Public commentClosed on 27 February 2026, followed by stakeholder workshops
Final designFebruary 2027 Budget

The dates and rate are from MyBroadband and eNCA. We covered the original proposal in our earlier article on the 20% tax.

The money involved

Gross gambling revenue is the amount bet minus winnings paid out. Licensed bookmakers already pay VAT and provincial gambling taxes of about 18% to 19% of that revenue, and the new tax would come on top, according to ITWeb. Treasury estimates the extra tax would raise more than R10 billion for national government. The online gambling industry has argued the proposal is unconstitutional and would push players and operators towards offshore sites, ITWeb added.

What it means for you

Nothing changes for players yet. The tax, if it comes, is levied on operators, not on your winnings. What is unknown is how operators would respond to a higher tax bill, for example through smaller promotions. We will update this page when the Budget is tabled in February. In the meantime, stick to operators licensed by a provincial board and keep your deposit limits in place.