as a bounce Online gambling is booming 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, the National Gambling Board, estimates that two-thirds of adults engage in online gambling, a sharp increase from 30% in 2017.
The government has proposed imposing a national 20% tax on online gambling profits, which it says would double the sector's revenues from R4.8 billion currently to R10 billion annually.
According to the National Treasury, the draft bill will be presented to MPs this year and the final tax proposal will be presented 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 Hollywoodbets, one of the country's largest, has not commented publicly on the tax proposal, while New York-listed Betway said it would speak through the industry body, the South African Bookmakers Association.
crisis calls
Crisis calls to the national helpline for gambling addicts have increased by more than two-thirds compared to last year, Sibongile Simelane-Kuntana, executive director of the South African Responsible Gambling Foundation, said in an interview.
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.
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South African speculators placed record R1.5-trillion in bets in the 2024/2025 financial year, data shows National Gambling Board show.
The South African government argued in a November 2025 paper 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 about 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 National 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 and new levy will be 38.5% of profits, from a mix of provincial, value-added and national taxes.
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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, “This would be a counteroffer from our side, addressing the illicit market… and we would all benefit from it.” — Kopano Gumbi and Anait Miridzhanian, (c) 2026 Reuters
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