Governments across Africa are stepping up efforts to rein in rampant online gambling by imposing higher taxes, citing a surge in addiction and related social harms. But the gambling industry warns that steep levies may do more harm than good, potentially pushing players toward illegal platforms and undermining regulated markets.

The move reflects growing concern about the rapid expansion of online betting on the continent, particularly in South Africa, where authorities say a significant portion of the adult population now engages in online gambling a dramatic rise from previous years.

Tax Hikes to Combat Addiction and Boost Revenues

In South Africa, the government has proposed a national 20% tax on gambling profits from online betting, a move Treasury officials say will double tax revenues from the sector to around 10 billion rand ($607 million) annually. The draft legislation is expected to be presented to lawmakers later this year, with final consideration anticipated in early 2027.

Officials argue the tax is not only about revenue it aims to discourage problem gambling, which has surged alongside the digital accessibility of betting platforms. The National Gambling Board estimates that up to two-thirds of adults now place online bets, a sharp jump from about 30 % less than a decade ago.

Similar tax increases targeting gambling profits have been introduced this year in countries including Malawi, Zimbabwe and Senegal as policymakers grapple with the social and economic fallout of widespread betting.

Soaring Addiction Cases and Social Costs

A key driver for policy change has been the rapid rise in gambling addiction. In South Africa, the Responsible Gambling Foundation reported a surge in distress calls to its helpline and treated more than 4,600 addiction cases in 2025 a marked increase from 2,600 the previous year. Many affected individuals point to economic desperation as a key motivator.

“We’re trying to gamble ourselves to prosperity,” said Sibongile Simelane‑Quntana, executive director of the foundation, highlighting the link between economic insecurity and excessive gambling.

Personal stories mirror the statistics. In Senegal, where tougher gambling levies have also been adopted, one man described relapsing into betting through a new mobile app, despite previously fighting addiction.

Industry Fights Back, Warns of Unintended Consequences

Gambling operators, however, have pushed back strongly against new taxes. Industry groups, including the South African Bookmakers’ Association, argue that high tax rates which could push total levies, including provincial and value‑added taxes, to nearly 38.5 % of profits will hurt legitimate operators and encourage a shift to illegal or offshore betting sites.

“Illegal sites could proliferate without the extra burden of levies,” warned Sean Coleman, CEO of the association, in a formal submission to the treasury. The industry says cracking down on unregulated platforms would be a more effective way to protect consumers.

Critics also note that taxation alone won’t solve deeper social issues. In Senegal, advocates for addiction support argue that without targeted treatment programs and safeguards, taxes could unfairly penalise vulnerable users without addressing the root causes of gambling harm.

Debate Over Regulation and Public Health

The debate over gambling taxation has also spilled into broader policy discussions. In South Africa, lawmakers have debated tighter regulations and broader strategies to protect vulnerable citizens from gambling-related harms, including restrictions on advertising and limits on aggressive marketing that targets youth and economically vulnerable groups.

Experts and civil society representatives argue that holistic approaches are needed combining taxation, education, treatment services and stronger regulatory oversight to mitigate the social and economic costs of widespread gambling addiction.

Looking Ahead

As African states roll out new gambling tax regimes, the tension between public health objectives and industry concerns is likely to play out across legislative arenas. Governments insist higher taxes are necessary to fund addiction support and reduce social harm, while operators caution that poorly calibrated tax policy could fuel illicit markets and weaken regulated sectors.

With online gambling continuing its rapid expansion and addiction statistics climbing, many observers say the continent faces a critical juncture: balancing economic opportunity with responsible, inclusive public policy that protects societies from the darker side of the digital betting boom.

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