KwaZulu-Natal lawmakers opened public hearings on a bill that would raise gaming and betting taxes by over 300%. Goldrush Gaming Group warned that parts of the industry could shut down if it is approved.
KwaZulu-Natal gaming tax overhaul was presented on 10 November to a full Finance Portfolio Committee. The bill targets casino gaming, bingo, bookmaking and horse racing, with new levies. Goldrush Gaming Group says increases of over 300% could close the sector. The provincial treasury expects an extra R50–100 million a year.
- The 300% Tax Increase Proposal
- Why Operators Fear Closure
- National 20% Online Gambling Tax
- What Comes After the First Hearing
KwaZulu-Natal lawmakers opened public hearings on the Gaming and Betting Tax Bill, 2026 on 10 November in Pietermaritzburg. Neli Shezi, the deputy director general at the provincial treasury, presented it to a chamber filled to capacity. Francois Rodgers, the province’s finance minister, tabled the bill in June with a stated goal of modernising the tax framework and aligning it with national legislation.
The bill taxes casino gaming, bingo, bookmaking and horse racing, and introduces new levies. Revenue stays in KwaZulu-Natal, where part of it would fund a Gaming and Betting Transformation Fund for emerging operators. Horse racing proceeds would go back into the equine industry, with traditional Umtelebhelo racing singled out for reinvestment.
The 300% Increase Could Close the Sector
Goldrush Gaming Group executive Katleho Thejane told the committee that bingo and casino operators were already squeezed by the effects of Covid-19, unresolved legal disputes and competition from online gambling. He argued the industry has no room to absorb another tax shock.
Thejane put the number bluntly: increases of over 300% could shut the sector down. Some operators currently pay around 3% of earnings in tax. Those earning roughly R200 million, about $12 million, could face effective rates above 15% under the proposed framework. He told the committee the province could lose every rand by approving it.
Following this warning, Thejane said branches are already closing. Nqobile Kunene, a racecourse operator from eThekwini, argued that rural horse racing has higher standards but lacks the infrastructure, finance and technical skills to keep them. She asked the committee to fix that gap before raising the bar.
AGBrief covers South African gaming developments as the province moves through the consultation.
A National Tax Could Follow KwaZulu-Natal
The provincial debate comes as National Treasury proposed a 20% tax on gross gambling revenue from online betting and interactive gambling operators, on top of KwaZulu-Natal existing provincial taxes. Enoch Godongwana, the national finance minister, announced the proposal in his medium-term budget statement on 21 October, saying consultations are still under way on the implications for provinces and the regulated market.
Godongwana said a final design will appear in the February 2027 budget. That timing matters for KwaZulu-Natal, where operators now face two tax questions at once. The province has been arguing about a 300% increase while the national government tests whether a 20% online levy is viable at all.
What Comes After the First Hearing
Committee chair Mthandeni Dlungwana said the first hearing drew significant public interest. Further hearings will be held in Dundee on 1 December and Richards Bay on 2 December. Written comments remain open until 15 January 2027.
Tim Brauteseth, the finance spokesperson for the Democratic Alliance, backed the bill. He said the changes would stop potential revenue from being lost through loopholes or misinterpretation. As a result, the province has framed the tax as a compliance problem before it has framed it as a revenue problem.
iGaming Business has been covering South African operators as provincial and national tax rules collide.
Frequently Asked Questions
When did KwaZulu-Natal begin hearing on the gaming tax bill?
The Finance Portfolio Committee held the first public hearing on 10 November in Pietermaritzburg. Finance MEC Francois Rodgers tabled the KwaZulu-Natal bill in June. Further hearings are scheduled for Dundee and Richards Bay in December, with comments open until 15 January 2027.
What does the proposed tax increase cover?
The bill taxes casino gaming, bingo, bookmaking and horse racing, and adds new levies. Revenue would stay in the province, with part funding a Gaming and Betting Transformation Fund. Horse racing proceeds would support traditional Umtelebhelo racing.
Why do operators say the industry could close?
Katleho Thejane of Goldrush Gaming Group says operators are already hit by Covid-19, legal disputes and online competition. Increases of over 300% could raise effective KwaZulu-Natal rates above 15% for mid-sized players. He said some branches are closing as the province speaks.
How much extra revenue does the province expect?
The provincial treasury expects the changes to raise R50 million to R100 million a year. Goldrush Gaming Group argues that is an overestimate. Thejane warned the province could lose every cent by approving a framework that pushes operators into closure.
Will there be a national online gambling tax?
National Treasury has proposed a 20% tax on gross gambling revenue from online betting and interactive gambling, on top of provincial taxes. Finance Minister Enoch Godongwana said a final design will be announced in the February 2027 budget, with consultations still ongoing.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
