South Africa Considers “Sin Tax” on Gambling Amid Rising Concerns

31.01.2025

South African political parties are advocating for gambling to be classified under “sin tax” regulations, akin to alcohol and tobacco, following a sharp surge in the industry. In the fiscal year 2023/24, total wagers soared to R1.1 trillion—a 40.2% increase—while gross gambling revenue climbed 25.7% to R59.3 billion.

Gambling as a Means of Survival

A recent Bettabets survey revealed troubling trends: nearly half of gamblers wager to cover essential costs like rent and school fees, while 70% see it as a way to supplement their income rather than for entertainment. Additionally, most winnings are spent immediately, with only 27% allocated for savings or investment.

Rise Mzansi MP Makashule Gana has also pointed to a correlation between government social grants and increased gambling activity. He raised concerns about long queues at betting establishments on grant distribution days, suggesting a possible link between financial aid and gambling dependency.

Push for Legislative Reforms

Gana is urging Parliament to prioritize two bills—the Remote Gambling Bill and the National Gambling Amendment Bill—to address gaps in the current regulatory framework. He argues that the National Gambling Act (NGA) is outdated, particularly in tackling online gambling and advertising.

Among his proposals:

  • Stronger advertising restrictions – Reducing gambling ads on TV, social media, and sports events to protect vulnerable individuals.
  • Higher taxes on operators – Increasing the current 8% gambling tax to fund addiction treatment programs.
  • Public education campaigns – Implementing warning messages in gambling ads, similar to anti-smoking campaigns.

Gana emphasizes the need for oversight, particularly as the National Gambling Board (NGB) has been operating without an official board for over a decade.