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KwaZulu-Natal holds gambling tax bill hearing as operator warns of closures
The provincial treasury expects the proposed changes to raise R50 million to R100 million a year. Further hearings are scheduled for December.
Lawmakers in South Africa’s KwaZulu-Natal province opened public hearings on a gambling tax bill on 10 November, with an operator warning that the proposed increases could force businesses to close.
The Finance Portfolio Committee held its first hearing in Pietermaritzburg, where KwaZulu-Natal Provincial Treasury deputy director general Neli Shezi presented the measure. Finance MEC Francois Rodgers tabled the bill in June to update the provincial tax system and align it with national legislation, iGaming Business reported.
The bill covers taxes on casino gaming, bingo, bookmaking and horse racing, and would introduce additional levies. Some revenue would support a proposed Gaming and Betting Transformation Fund for emerging operators, while horse racing tax proceeds would be reinvested in the equine industry, particularly traditional racing known as Umtelebhelo.
Goldrush Gaming Group executive Katleho Thejane told the committee that casino and bingo businesses faced pressure from Covid-19’s effects, legal disputes and online gambling competition. He warned that proposed increases of over 300% could shut down the industry, according to local newspaper The Witness, as cited by iGaming Business.
The Witness reported that some operators currently pay about 3% of earnings in tax. Under the proposed framework, operators earning about R200 million ($12 million) annually could face effective rates above 15%.
The provincial treasury projects additional annual revenue of R50 million to R100 million. Thejane argued that closures could instead leave the province with less revenue. Racecourse operator Nqobile Kunene said rural horse racing needed infrastructure, finance and technical skills before new standards and regulations were imposed.
Tim Brauteseth, the Democratic Alliance’s provincial finance spokesperson, supported the bill. The committee has scheduled further hearings in Dundee on 1 December and Richards Bay on 2 December; written submissions are open until 15 January 2027.
Separately, National Treasury has proposed a 20% tax on gross gambling revenue from online betting and interactive gambling operators, in addition to provincial taxes. Finance Minister Enoch Godongwana said consultations were continuing and that the final design would be announced in the February 2027 budget.