South Africa’s gambling sector is facing intensified regulatory scrutiny as policymakers weigh tighter advertising controls, new fiscal measures and targeted interventions aimed at curbing social harm.
Key Points
New national advertising standards and possible time-based restrictions are expected before July 2026
A proposed 20% national online gambling tax has sparked constitutional and economic debate
Rising addiction calls and cases involving student allowances have intensified focus on social harm
South Africa's gambling sector is facing a wave of regulatory scrutiny, with government bodies, civil society and financial authorities all moving simultaneously to address what critics describe as a deepening social crisis. Three distinct but interconnected developments – new advertising rules, a contested national tax proposal and a crackdown on student fund misuse – are reshaping the policy landscape around one of the country's fastest-growing industries.
The Department of Trade, Industry and Competition has confirmed it is preparing new norms and standards to govern gambling advertising, with regulations expected before July 2026. Director-General Simphiwe Hamilton made the commitment in a formal response to a 2025 memorandum submitted by opposition party Rise Mzansi, which has been among the most vocal advocates for reform.
The announcement reflects mounting concern over the scale and reach of gambling marketing in South Africa. Online betting companies – among them major operators such as Betway and Hollywoodbets – have built extensive brand presences through sports sponsorships, influencer partnerships and digital advertising across platforms including TikTok, Instagram and YouTube.
The National Gambling Board's strategic plan for 2025/26 to 2029/30 specifically targets advertising that reaches minors or that downplays the risks associated with gambling.
Measures under consideration include restricting advertising to certain time slots, limiting sports sponsorship marketing and enforcing stronger responsible gambling messaging.
Hamilton acknowledged, however, that some elements of reform – including taxation – involve concurrent jurisdiction with provinces, complicating a unified national response.
Sitting alongside the advertising discussion is a more contentious fiscal proposal: the National Treasury's plan to impose a 20% tax on gross online gambling revenue at the national level, on top of existing provincial gambling taxes.
Treasury has indicated the measure could raise an estimated R10bn ($625m) annually, framing it primarily as a social harm reduction tool rather than a pure revenue exercise. The public comment period was extended in January 2026, reflecting the weight of the debate.
Critics, however, have raised serious objections. The Free Market Foundation (FMF) has formally called on the Treasury to withdraw the proposal, arguing it is constitutionally problematic and economically counterproductive.
South Africa's gambling regulation operates under a deliberately decentralised framework, with nine Provincial Gambling Boards holding primary authority over licensing and taxation. The FMF contends that a uniform national levy would undermine provincial autonomy and amounts to fiscal centralisation.
There are also concerns that higher taxes on licensed operators could push consumers toward offshore platforms, which, according to industry research cited by the FMF, already account for roughly 62% of online gambling activity.
Online operators already carry a layered tax burden, including provincial levies, VAT and corporate income tax. The FMF's position is that regulatory clarity on the legal status of online casinos should precede any new fiscal framework.
A third front has opened around the misuse of student financial aid. The National Student Financial Aid Scheme (NSFAS) and the National Gambling Board have initiated a joint intervention after investigations revealed that some grant recipients were diverting living stipends to online betting accounts.
The two bodies are working toward a formal memorandum of understanding, with awareness campaigns, financial literacy programmes and on-campus workshops expected to roll out across tertiary institutions during 2026. More comprehensive tracking of allowance spending is anticipated from 2027.
The collaboration also involves discussions with the South African Responsible Gambling Foundation and the SA Bookmakers' Association on technological measures that could restrict betting account creation by identified grant recipients.
The convergence of these three policy threads points to a sector that has grown faster than the regulatory architecture designed to govern it – and a government now under pressure to catch up.
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