Guide
Gambling tax in South Africa: do you pay tax on betting winnings?
Casual betting winnings are generally treated as windfalls, the 15% withholding tax was never introduced, and the tax that does exist falls on operators.
For most people, gambling tax in South Africa is not something they pay directly: tax advisers generally treat winnings from occasional betting and the Lotto as windfalls rather than income, so they are not taxed. The tax that does exist is levied on bookmakers and other operators, on the money they keep. Professional gamblers are the main exception, and because no ruling from SARS covers every case, it is worth checking your own situation with a tax practitioner.
Are betting winnings taxable for ordinary players?
Deloitte's tax team wrote in February 2025 that occasional gamblers' winnings are exempt from income tax because they are classified as windfall gains, while people who gamble as a business are taxed on their profits. TaxTim gives similar guidance and adds a practical point: casual and Lotto winnings are not taxable, but they should still be declared on your return as non-taxable income.
The idea behind this is that income tax applies to amounts earned from work, trade or investment. A one-off win on the Durban July or a lucky accumulator is not earned in that sense. That changes once betting becomes your livelihood: regular, organised, profit-seeking activity starts to look like a trade, and the profits can then be taxed like any other business income.
There is also a capital gains angle. The Eighth Schedule to the Income Tax Act disregards capital gains from "any form of gambling, game or competition" in paragraph 60(1). Paragraph 60(2) contains exceptions, which are believed to concern foreign or unlawful gambling; this page does not rely on them, and anyone in that position should take advice.
What about the 15% tax on winnings over R25,000?
You may have seen claims that winnings above R25,000 are taxed at 15%. That was a proposal in the 2011 Budget for a withholding tax on gambling winnings. According to Deloitte it was never implemented. Sites that still describe it as current are out of date.
The tax operators pay
Instead of taxing players, South Africa taxes gambling businesses. Each province levies tax on gross gambling revenue, which is the amount operators keep after paying out winnings. Rates for online betting are reported at roughly 6% to 9% of gross gambling revenue depending on the province. Rates for individual provinces should be checked with the relevant provincial board.
A national 20% online gambling tax has also been proposed by National Treasury. It would sit on top of provincial tax and be paid by operators on their revenue; it does not apply to your personal winnings. At the Medium-Term Budget Policy Statement on 21 October 2026, the Finance Minister said consultations are continuing and that the final design will come with the February 2027 Budget. Until then it is a proposal only.
Gambling tax in South Africa at a glance
| Situation | General position |
|---|---|
| Occasional sports bet or horse racing win | Generally treated as a windfall, not taxed; declare as non-taxable income |
| National Lottery prize | Generally not taxed as income; declare as non-taxable |
| Professional or full-time gambler | Profits can be taxed as business income |
| 15% withholding tax over R25,000 | Proposed in 2011, never implemented |
| Provincial gambling tax | Paid by operators on gross gambling revenue |
| Proposed 20% national online tax | Not law; would be paid by operators |
Practical points for your tax return
- Keep records. Your bookmaker's bet history and withdrawal statements show where money in your bank account came from. That helps if SARS ever asks about large deposits.
- Declare large wins. Listing a win as non-taxable income costs nothing and avoids questions later.
- Watch the source of funds. Licensed bookmakers are accountable institutions under the Financial Intelligence Centre Act, so they may ask where your deposits come from. This is FICA compliance, not a tax.
- Get advice if betting is regular. If you rely on betting income, a registered tax practitioner can tell you whether it counts as a trade.
Licensed bookmakers and offshore sites
Provincial tax, FICA checks and consumer protection apply only to bookmakers licensed by a provincial gambling board. Offshore casino-style sites are not licensed in South Africa, and paragraph 60(2) suggests gains from unlawful gambling may be treated differently. Our list of licensed betting sites explains how to check a licence, and how we rate betting sites shows why the licence carries the most weight in our scores.
Winnings, losses and staying in control
Because winnings are generally not taxed, it is easy to forget that losses are not deductible either for a casual player. The money you lose is simply gone. Betting is for adults aged 18 and over only, and if it is costing more than you planned, our responsible gambling page lists confidential support. Our other betting guides cover bet slips, odds and strategy myths.
Questions and answers
Do I pay tax on Betway or Hollywoodbets winnings?
For a casual player, winnings are generally treated as windfall gains and not taxed, and no withholding tax on winnings is in force. Professional gamblers may be taxed on profits.
Is the 15% gambling tax on wins over R25,000 real?
No. It was proposed in the 2011 Budget but never implemented.
Do I have to declare Lotto winnings to SARS?
Tax guidance suggests declaring them as non-taxable income. It does not create tax, but it explains the money in your account.
Will the proposed 20% online gambling tax affect my winnings?
As proposed, it would be paid by operators on their gross gambling revenue, not by players. The final design is expected in the February 2027 Budget.
Can I deduct gambling losses from my tax?
Not as a casual player. Only someone taxed as a professional gambler would be looking at profits and losses as business figures, and that needs advice from a tax practitioner.