NGB annual report figures fuel debate over Treasury's proposed 20% online gambling tax
A South African gambling lawyer, Garron Whitesman, says the proposed extra 20% national tax on online gambling could take licensed operators' combined tax burden to roughly 38 to 39% of gross gambling revenue, citing figures from the National Gambling Board's 2025/26 annual report. The tax is still only a proposal, with the final design due in the February 2027 Budget.
The tax would hit licensed, provincially regulated online bookmakers, not the offshore casinos most South African players use for casino games. Even so, how it ends up shaped will affect how competitive licensed operators are, how much money goes to provinces and responsible gambling programmes, and whether Treasury and the National Gambling Board take a firmer line on unlicensed sites. The debate is also a reminder that online casino games remain outside the licensed regime, so players should check the NGB verified operators list and our casino reviews rather than assume a site is licensed here.
What was said and where it comes from
On 30 October 2026, The Citizen reported comments from Garron Whitesman of Whitesmans Attorneys on the National Gambling Board (NGB) annual report for 2025/26, which was tabled in October. His argument is that the report shows a large, growing licensed industry, so government should prove that an extra national tax will meet its aims before it goes ahead.
These are one lawyer's calculations and opinions, reported by a newspaper. We have not checked them against the annual report itself, so treat the arithmetic as his reading of the numbers rather than an official estimate.
The numbers quoted
- Gross gambling revenue (GGR) rose from R74.5 billion to R84.46 billion over the year.
- Provincial gambling taxes rose from about R5.8 billion to R6.44 billion.
- Total turnover was about R1.76 trillion, up from R1.5 trillion. Whitesman stressed that turnover counts winnings that are bet again, so it is not what players actually spend.
- About 13,328 people work in casinos and 12,230 in bookmaking, around 25,500 direct jobs.
- Contributions of about R57.4 million went to the National Responsible Gambling Foundation, whose counselling line took 83,541 calls, of which about 5,443 were treatment related. The Foundation treated 3,541 people.
He also said growth has been driven mainly by betting and bookmaking, while casino, bingo and limited payout machine revenue has stayed fairly flat.
The 38 to 39% claim
Whitesman says licensed online betting operators already pay provincial gambling tax of around 6.5% of GGR, plus VAT that adds roughly 12 to 13%, which together is about 18 to 19%. Adding the proposed 20% national tax would bring that to about 38 to 39%, before corporate income tax and other business taxes. He pointed to the Netherlands and the United Kingdom as places where very high tax levels have been followed by pressure on investment and jobs.
Treasury's own framing is different: the discussion paper aimed to raise revenue and address gambling harm. Whitesman questions whether enough evidence has been shown that either goal will be met, and says the legal basis for a national tax on top of provincial taxation needs close scrutiny.
What it means for South African players
For now, nothing changes at the till or on your account. The tax would be charged on operators, not on players. The practical risk Whitesman raises is displacement: if licensed operators become less competitive, more customers may drift to offshore sites that pay no South African gambling tax and sit outside local consumer protection.
That is already the reality for online casino games, which no South African operator is licensed to offer. Our FICA verification guide explains what to expect when you sign up anywhere.
What to watch next
Finance minister Enoch Godongwana said in the 21 October Medium-Term Budget Policy Statement that consultations on the design are continuing. The final design is expected in the February 2027 Budget. Watch for the rate, whether the base covers casino-style games, and how revenue would be shared with provinces. Our earlier brief on the Treasury statement covers that announcement.