South Africa is considering imposing a 20% tax on online gambling to curb its rapid growth and address related social harms.
“Due to the surge in online gambling and its impact on society, it is proposed that a 20% tax is applied on gross gambling revenue from online betting, including interactive gambling” the National Treasury said in its discussion paper published on Tuesday.
While the proposed tax could generate about 10 billion rand ($580 million) in additional revenue, its main purpose is to “discourage problem and pathological gambling and their ill effects,” the Treasury said.
The proposal seeks to address the steep rise in online gambling in South Africa.
