KwaZulu-Natal opens hearings on gaming and betting tax overhaul
KwaZulu-Natal lawmakers have begun public hearings on a bill that would raise gaming and betting taxes in the South African province, with one operator warning that parts of the industry could close.
The provincial legislature’s Finance Portfolio Committee held the first hearing on the KwaZulu-Natal Gaming and Betting Tax Bill, 2026, in Pietermaritzburg on 10 November. Neli Shezi, deputy director general at the KwaZulu-Natal Provincial Treasury, presented the bill to a chamber filled to capacity.
Finance MEC Francois Rodgers, the province’s finance minister, tabled the bill in June. It would modernise the province’s tax framework for the sector and bring it into line with national legislation.
The bill sets taxes on casino gaming, bingo, bookmaking and horse racing and adds new levies. Revenue would go to the province, with part of it funding a proposed Gaming and Betting Transformation Fund to help emerging operators.
Horse racing tax revenue would be reinvested in the equine industry, particularly traditional horse racing, known as Umtelebhelo.
Operators warn of closures
Katleho Thejane, an executive at Goldrush Gaming Group, told the committee that bingo and casino operators were already under strain from the effects of Covid-19, legal disputes and competition from online gambling.
“The industry is currently under tremendous pressure. If the proposed tax increases of over 300% are approved, the industry could shut down,” he said, according to The Witness, a local newspaper.
The newspaper reported that some operators pay about 3% of their earnings in tax, while those earning about R200 million ($12 million) a year could face effective rates above 15% under the new framework.
The provincial treasury expects the changes to raise R50 million to R100 million a year. Thejane said the province risked losing revenue instead.
“The provincial government could end up not getting a cent because of the proposed increases. As we speak, some branches are closing,” he said.
Nqobile Kunene, a racecourse operator from eThekwini, said rural horse racing supported higher standards but lacked infrastructure, finance and technical skills. “Let’s deal with that before setting new standards and regulations,” she said.
Tim Brauteseth, finance spokesperson in the province for the Democratic Alliance, which belongs to the provincial governing coalition, backed the bill. He said it would make sure “potential revenue is not lost through loopholes or misinterpretation”.
Committee chair Mthandeni Dlungwana said the first hearing had drawn significant public interest. Further hearings will take place in Dundee on 1 December and Richards Bay on 2 December, and written comments are open until 15 January 2027.
Treasury proposes 20% tax on online gambling
The provincial debate comes as operators face a possible national tax. National Treasury has proposed a 20% tax on the gross gambling revenue of online betting and interactive gambling operators, on top of existing provincial taxes.
Finance Minister Enoch Godongwana said in his medium-term budget statement on 21 October that consultations were continuing, including on “the implications for provinces and the currently regulated market”.
“An announcement of the final design will be made in the February 2027 budget,” he said.