New gambling figures put National Treasury’s proposed 20% tax under scrutiny
Record gambling turnover of R1.76 trillion raises concerns that a proposed 20% national tax could push the effective tax burden to nearly 40% of GGR.Summary
The National Gambling Board’s latest annual report shows South Africa’s licensed gambling industry generated gross gambling revenue (GGR) of R84.46 billion and provincial gambling taxes of R6.44 billion, with total turnover reaching R1.76 trillion. Gambling law expert Garron Whitesman warns that National Treasury’s proposed additional 20% national tax on online gambling could raise the combined effective tax burden (including provincial taxes and VAT) to around 38-39% of GGR, threatening investment, jobs and competitiveness. The industry already supports about 25,500 direct jobs in casinos and bookmaking. Whitesman also cautions that higher taxes could drive consumers to illegal offshore platforms, eroding provincial revenues and undermining consumer protection, and questions whether the proposal’s revenue and harm-reduction objectives have been adequately evidenced.
(Source：The Citizen)