Online gambling tax: what the MTBPS 2026 said and what happens next
Photo: Santeri Viinamäki, CC BY-SA 4.0, via Wikimedia Commons
Not yet. In the medium-term budget policy statement (MTBPS) on 21 October 2026, Finance Minister Enoch Godongwana said consultations on a National Online Gambling Tax are still going on, and the final design will be announced in the February 2027 Budget (MTBPS speech, gov.za; ITWeb).
What did Godongwana say about the online gambling tax?
He said National Treasury published a discussion paper last year proposing a national tax on online gambling, and that the submissions it received "generally recognised the need to address the growth of online gambling and its associated harm" (MTBPS speech).
Treasury is still consulting on three things: how the tax would be designed, how it would link to the existing gambling regulations, and what it would mean for provinces and the gambling market that is already regulated (gov.za).
How much would the tax be?
No rate has been confirmed. The proposal in Treasury's discussion paper is a 20% tax on gross gambling revenue from online betting, on top of the provincial gambling taxes that already apply (BusinessTech). Gross gambling revenue is what operators keep after paying out winnings, not the total amount bet.
Why does Treasury want a national gambling tax?
Online betting has grown fast. According to South African Reserve Bank figures reported by BusinessTech, gross gambling revenue in South Africa rose from R26.3 billion in 2015 to R74.5 billion in 2024 (BusinessTech). Treasury links the proposal to the harm that comes with that growth (MTBPS speech).
Will punters pay the tax directly?
The proposal as reported is a tax on operators' gross gambling revenue, not a new tax on players' winnings (BusinessTech). How operators respond, and the final design, will only be clear once the details are announced in February 2027.
Were any other new taxes announced in the MTBPS?
No. BusinessTech reports that the MTBPS did not announce changes to general taxes or VAT (BusinessTech). Godongwana said gross tax revenue for 2026/27 has been revised up by R17.1 billion compared with the February estimate (MTBPS speech).
What happens next?
Treasury will keep consulting and announce the final design of the tax in the 2027 Budget in February (gov.za). Any new tax would still need legislation before it takes effect.
FAQ
Is there an online gambling tax in South Africa yet?
No. Treasury is still consulting on the National Online Gambling Tax and will announce the final design in the February 2027 Budget.
What rate is proposed for the online gambling tax?
Treasury's discussion paper proposed 20% of gross gambling revenue from online betting, on top of existing provincial taxes. No final rate has been confirmed.
When will the final online gambling tax design be announced?
Finance Minister Enoch Godongwana said it will be announced in the February 2027 Budget.
Did the MTBPS 2026 announce any other new taxes?
No. No changes to general taxes or VAT were announced, and gross tax revenue for 2026/27 was revised up by R17.1 billion.