Treasury’s online gambling tax risks driving players underground
A proposed online gambling tax in South Africa may push players to unregulated offshore platforms, harming the legal market and reducing tax revenue.Summary
The Free Market Foundation warns that National Treasury’s proposed 20% tax on online gambling ventures will likely drive consumers to unregulated, offshore platforms, resulting in job losses and decreased tax receipts for the government. The FMF argues this policy undermines provincial authority and burdens legal operators. Industry experts, including the South African Bookmakers’ Association and the International Federation of Horseracing Authorities, concur, citing a rise in illegal operators and the potential for consumers to migrate to unregulated sites offering better odds. Concerns are also raised about the enforceability of taxing offshore platforms without proper infrastructure. While National Treasury anticipates over R10 billion in additional revenue, the FMF believes the priority is revenue generation rather than addressing the legal status of offshore casinos. Evidence from the UK, where similar tax increases led to job losses and a shift to the black market, further supports these concerns.
(Source：Itweb)