Online Reporter
Business Reporter
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has announced a dramatic increase in the tax rates for the country’s burgeoning betting and gambling sector, escalating the primary Bookmakers Tax from 3 percent to 20 percent of gross revenues.Presented as part of the 2026 National Budget, the sweeping measures that take effect from January 1, 2026 are intended to tackle widespread tax evasion and curb the rising tide of “betting-related vices” in the country.
The proposed tax hike applies to all licensed bookmakers, lotteries, and casino operators, representing a 17 percentage point jump on their gross takings.
In an equally stringent move, the withholding tax on the winnings of individual punters is set to more than double, rising sharply from 10 percent to 25 percent.
Minister Ncube told Parliament that the industry, which includes sports betting and casino gaming, has expanded rapidly, noting an annual revenue increase of between 8 and 10 percent from 2023 to 2024.
However, the Minister stressed that this growth has been accompanied by severe social consequences, including “addiction, indebtedness, suicide and loss of productive hours,” stating that these issues have “outpaced the existing regulatory controls.”
He also claimed that “widespread profit-shifting practices and under-declaration of revenues” have resulted in the rapidly expanding sector being significantly under-taxed.
To promote fairness, the new 20 percent levy on operators’ gross revenues will be treated as a final tax, meaning companies will be exempt from paying Corporate Income Tax.
The move mirrors global trends.
The UK taxes remote gaming at 21 percent of gross profit and is consolidating remote levies and New Zealand introduced a 12 percent offshore duty on online gambling profits.
