Tanzania taxes internet casinos at 25% of gross gaming revenue (GGR), according to the Tanzania Revenue Authority. South Africa has no lawful online casino market, so it has no online casino GGR tax: interactive gambling is unlawful, provinces tax licensed gambling, and a proposed 20% national online gambling tax is still being designed. The two countries are not like-for-like.
Quick answer: what are the rates?
| South Africa | Tanzania | |
|---|---|---|
| Is online casino lawful? | No. Interactive gambling is unlawful under the National Gambling Act, 2004, except as authorised by law. Online sports betting through licensed bookmakers is separate. | Yes, under a Gaming Board of Tanzania licence. |
| GGR tax on online casino | None, because there is no lawful licensed online casino. A national tax of 20% on online and interactive gambling GGR has been proposed, not enacted. | 25% of GGR (TRA rate table). |
| Land-based casino | Taxed by provinces. Treasury reports an average of 10% to 15% of GGR; for example, Gauteng taxes casino GGR at 9% and the Western Cape uses a progressive scale of 8% to 19%. | 18% of GGR (TRA rate table). |
| Status of change | Final design of the national tax to be announced in the February 2027 Budget. | A proposed 5% excise on stakes was withdrawn before the Finance Act 2026. |
Do not combine the figures: Tanzania's 25% applies to online casino and online sports betting alike, while South Africa's proposed 20% would apply to a different, currently unlicensed category on top of provincial taxes.
South Africa: what the law says
Online casinos are not lawful
National Treasury's discussion paper on a national gambling tax (25 November 2025) explains that the National Gambling Act, 2004 made interactive gambling unlawful except as authorised, that the National Gambling Amendment Act, 2008 would have regulated it but has not been implemented, and that provincial taxes mostly cover on-premises gambling, including online betting through a licensed bookmaker. The legal position of online casino games is therefore simple: they are not lawfully licensed, so there is no lawful online casino GGR tax base. Our legality guide covers the position in more detail.
The proposed national tax
The same paper proposes a national tax of 20% on the GGR of online betting and interactive gambling operators, charged in addition to provincial taxes. It says the combined rate would be between 26% and 29% and estimates more than R10 billion a year in revenue for national government. GGR is stakes less winnings paid to players. The Minister of Finance said in the Medium-Term Budget Policy Statement on 21 October 2026 that consultations continue and that the final design will be announced in the February 2027 Budget, as we reported in our coverage of the delay. A proposal is not a tax rate: nothing is payable until legislation is enacted.
Provincial taxes
Gambling is mainly a provincial matter, and each province sets its rates through regulations. The same Treasury paper says provincial taxes are based on gross gambling revenue (gross wagers less gross pay-outs). It reports that casinos are generally taxed at an average of 10% to 15% of GGR and online bookmakers at an average of 6% to 7%. As examples, it lists Gauteng at 9% of GGR for casinos and 6.5% of gross betting revenue for bookmakers, plus a 1% Sports Development Fund levy, and the Western Cape at a progressive 8% to 19% for casinos, depending on taxable revenue. These are Treasury's reported figures, and the averages come from law-firm guides it cites, so check the regulations of the province you are interested in. Treasury's combined range of 26% to 29% for online betting is the proposed 20% plus the provincial component.
Pending legislation
A private member's Remote Gambling Bill (B11-2024) has been before Parliament. Reports differ on its status and details, including a reported 25% GGR tax, and we did not verify them against the bill's current text. Treat it as unsettled.
Tanzania: what the law and the Revenue Authority say
The TRA gaming tax page says gaming tax is charged on activities including casinos, sports betting and lotteries, and gives this rate table:
| Activity | Tax on GGR | Tax on winnings from 1 July 2026 |
|---|---|---|
| Land-based casino | 18% | 15% |
| Online or internet casino | 25% | 15% |
| Sports betting | 25% | 15% |
| Virtual games | 10% | 15% |
| National lottery | 20% | 15% |
The GGR column is from the TRA page. The winnings column is not. The TRA page still lists 13% for land-based casino winnings and 12% for sports betting, which were the 2025 rates. Here is how we reached 15%, from the Acts themselves:
- Section 34(1) of the Gaming Act sets gaming tax on winnings at 15%.
- Section 34(2) used to give land-based casinos and sports betting lower rates. The Finance Act 2025 set them at 13% and 12%.
- Section 16 of the Finance Act, 2026, in force from 1 July 2026, deletes section 34(2). The lower rates are gone, and the general 15% rate applies.
The same section adds a rule on where part of the money goes. Of the amount collected from land-based casinos, 7% is shared 70% to the AIDS Trust Fund and 30% to the Universal Health Insurance Fund. For sports betting the share is 13%. This sets the use of the money. It is not an extra rate for operators. Two cautions remain. The TRA page has no date, so check the current table with the TRA. It also says land-based and internet casinos file returns weekly, while its table shows internet casino returns as monthly.
The stake duty that was withdrawn
In June 2026, the government proposed a 5% excise duty on betting stakes. After consultations with the Parliamentary Budget Committee between 14 and 24 June, it withdrew the duty. The Finance Act, 2026 text we read contains no stake duty, which is consistent with the withdrawal. We covered the episode in our Tanzania stake-tax report.
Keep the different taxes separate
| Item | What it is | Applies to casinos? |
|---|---|---|
| GGR tax | Tax on revenue after winnings are paid out. | Yes in Tanzania (25% online, 18% land-based). South Africa: proposed only for online. |
| Tax on net winnings | Charged on player winnings, with the operator withholding it. | Yes in Tanzania: 15% from 1 July 2026 under the Gaming Act and the Finance Act, 2026. |
| Corporate income tax | Tax on company profit. | Separate regime in each country. We did not review it. |
| VAT | Sales tax on supplies. | Treatment of gambling supplies differs. We did not verify it. |
| Licence fees | Fees to regulators for licences. | Separate from tax. Tanzania licences are issued yearly by the Gaming Board. |
This article does not give corporate income tax, VAT or licence-fee amounts, because we did not verify them from primary sources. Confirm them with the revenue authority or an adviser.
Where casino tax treatment differs from other gambling
In Tanzania, the rate depends on the activity: 25% for internet casino, 25% for sports betting, 18% for land-based casino and 10% for virtual games, per the TRA table. In South Africa, the proposed 20% national tax would apply to online betting and interactive gambling operators; today's provincial taxes mainly cover licensed on-premises gambling and online betting through licensed bookmakers. Never apply one rate to a different category.
What this means for casino operators
- South Africa: there is no lawful route for an online casino today. Model any future market on the proposal's 26% to 29% combined burden only as a scenario, and watch the February 2027 Budget.
- Tanzania: plan on 25% of GGR for online casino and 15% withheld on winnings, and confirm with the TRA whether your returns are weekly or monthly.
- Both: keep GGR definitions, bonus treatment and deductions under written review, because the sources we found do not set out deductions in detail.
What to watch in 2027
- South Africa, February 2027 Budget: Treasury says the final design of the national online gambling tax will be announced then. Until legislation passes, nothing is payable. Model it only as a scenario.
- Tanzania, mid-2027: the winnings tax and the revenue earmarking changed on 1 July 2026. A Finance Act normally takes effect each 1 July, so check the 2027/28 Finance Bill when the budget is tabled.
- Any new stake-based duty: the 2026 attempt was withdrawn within weeks, so watch for it returning.
What is unresolved
- Whether internet casino returns are filed weekly or monthly.
- Provincial rates beyond the Gauteng and Western Cape examples Treasury lists.
- The final design, base and start date of South Africa's proposed national tax, and the status of the Remote Gambling Bill.
- Corporate income tax, VAT and licence-fee treatment in both countries.
Take specialist legal and tax advice before you decide.
Frequently asked questions
What is the GGR tax on online casinos in Tanzania?
The TRA lists 25% of gross gaming revenue for online or internet casinos.
Is there a GGR tax on online casinos in South Africa?
No, because online casino gambling is unlawful and unlicensed. A 20% national tax on online and interactive gambling GGR has been proposed but not enacted.
Is South Africa's 20% tax in force?
No. The Minister of Finance said the final design will be announced in the February 2027 Budget.
Did Tanzania introduce a 5% tax on bets?
It was proposed in June 2026 and withdrawn after consultations, so it is not in force.
Information, not legal or tax advice. Rates change; confirm with the revenue authority or a qualified adviser. 18+ only. Gamble responsibly.
