As the speed in online gambling Momentum is growing across Africa, with governments raising taxes to curb the risks of addiction and replenish depleted government coffers. In South Africa, by far its biggest market, the industry is pushing back.
Gambling, once a niche activity, has spread across the continent as a result of readily available online betting accounts. South Africa's gambling industry regulator, National Gambling BoardIt is estimated that two-thirds of adults engage in online gambling, a sharp increase from 30% in 2017.
The government has put forward a national proposal 20% tax on profits from online gamblingWhich it says will see the sector's revenue double from the current R4.8 billion to R10 billion annually.
According to the Treasury, the draft bill will be presented to legislators this year, with the final tax proposal to be introduced in February 2027. Several political parties represented in Parliament have expressed support for the tax.
Betting companies are lobbying hard against it, arguing that the tax will not curb problem gambling but will instead push it into underground sites, which they say will grow without the added burden of the levy.
Local gambling firm Hollywood Bets, one of the country's largest, has not commented publicly on the tax proposal, while NYSE-listed Betway said it would speak through the industry body, the South African Bookmakers Association.
'Trying to put yourself at stake for prosperity'
Call the National Helpline for Crisis gambling addict That's an increase of more than two-thirds in the past year, said Sibongile Simelane-Kuntana, executive director of the South African Responsible Gambling Foundation.
The foundation serves as a national crisis center for problem gamblers and treated more than 4,600 people suffering from addiction last year, up from 2,600 in 2024.
Simelane-Kuntana says most South Africans play out of frustration rather than entertainment. “We are trying to position ourselves for prosperity,” he said.
Reuters spoke to two self-professed gambling addicts in South Africa, who did not want to be named because of the stigma attached to the issue. both said economic hardship He was pushed towards gambling.
Southern African countries Malawi and Zimbabwe introduced similar tax increases on gambling profits this year.
In Senegal, a gambler who identified himself only by the initials IA said he was gambling again after a five-year hiatus. “When people ask me where my money goes, I can't tell and I have to lie,” he said. “It hurts me. How can I not tell the truth?”
The 37-year-old Senegalese man, who lives in the capital Dakar, started playing in 2017, initially betting 300 CFA francs (about R9) per week on sports bets while working as a cashier at a gambling company. When he began working as a manager, he said he began stealing from cash registers and losing thousands of francs in bets. He lost his job, but says he returned the money and initiated legal action.
Three months ago, IA started playing again after hearing his neighbor mention a new app for placing instant bets. In the familiar yo-yo of the struggling addict, he or she is downloading and deleting apps again and again.
The gambling industry is pushing back
National Gambling Board data shows South African punters placed a record R1.5-trillion in bets in the 2024/25 financial year. In a November 2025 paper, the government argued that the proposed tax would reduce the prevalence of online gambling activity and discourage problem gambling.
But in a formal submission to the Treasury, the South African Bookmakers Association, which represents a quarter of the country's 400 bookmakers, said it would be more effective to crack down on illegal gambling sites.
Gambling taxes are currently set by provincial authorities and average between 6% and 9%. The Treasury said the new national tax would increase overall tax rates by 29%.
South African Bookmakers Association CEO Sean Coleman argues that the total tax from a mix of provincial, value-added and national taxes and the new levy will be 38.5% of profits.
The association is presenting the case to the government that its proposal would drive players to illegal sites, as legally registered companies may be more expensive and winnings less attractive to players.
Coleman said, “That would be a counterproposal from our side: Go and address the illicit market … and we'll all reap the benefits.”
Meanwhile, debt-ridden Senegal announced additional gambling taxation in its economic recovery plan last year.
Seydina Mohamed Moustapha Gueye, head of the Senegalese association that organizes support group meetings for betting addicts, expressed doubt that the tax would help if “there is no policy to support these players suffering from addiction”.
Lonez, the gambling-regulating authority, did not respond to a request for comment.
reuters