Is gambling tax hike about morals or money

2026-03-03 - 05:23

When it comes to “holier than thou” statements to justify a controversial action or policy, politicians normally win, hands down. But, we would think National Treasury has entered that conversation with its apparently selfless position on whether to increase taxes on gambling. It’s no secret that Treasury – through the SA Revenue Service – is looking into all the little nooks and crannies in search of extra rands and cents which will improve the numbers in the annual budget. That will earn it pats on the back from its political masters – and enable them to crow a bit, as Finance Minister Enoch Godongwana did last week at a slightly improving economy and balance sheet. But if you thought that would be the motivation, you would be wrong. ALSO READ: National gambling tax: Overburdening legal operators or a cure for social ills? Raising levies on gambling revenue is definitely not about increasing the government’s take, swears Treasury. This is motivated by the fine desire to protect South Africans – from themselves, possibly. “The main aim of a market-based tax intervention by government is to reflect the social costs that the gambler imposes on others in the price of gambling,” said a discussion paper put out by Treasury. “A tax could be considered to correct for the social externalities imposed by the gambler,” it added. Given that the estimated gambling pot in this country exceeds R1.5 trillion annually, tax revenue – from a suggested additional 20% on top of existing licensing fees – would certainly be nothing to be sneezed at. ALSO READ: SA has a gambling problem but little is being done to regulate it However, Treasury also has a point when it says gambling addiction has huge “negative physical, psychological and social consequences”. It argues that tax money could be used to rehabilitate gambling addicts and for education programmes to prevent people becoming hooked. Critics, however, say more taxation could drive gambling underground, making matters worse. Increased revenue or increased societal damage? It’s a roll of the dice.