KZN hearings on gaming tax overhaul

iGaming Business reported that lawmakers in South Africa’s KwaZulu-Natal (KZN) province have begun public hearings on a bill to overhaul gaming and betting taxes. The process, now underway, has drawn strong views from operators, racing stakeholders and politicians as the province weighs higher rates and new levies across casinos, bingo, bookmaking and horse racing.

What happened

The KwaZulu-Natal Provincial Legislature’s Finance Portfolio Committee held the first hearing on the KwaZulu-Natal Gaming and Betting Tax Bill, 2026, in Pietermaritzburg on 10 November. The chamber was full as Neli Shezi, deputy director general at the KwaZulu-Natal Provincial Treasury, presented the bill. The province’s finance minister, Finance MEC Francois Rodgers, had tabled the legislation in June.

The bill seeks to modernise KZN’s tax framework and align it with national legislation. It would set taxes on casino gaming, bingo, bookmaking and horse racing, introduce new levies, and channel revenue to the province. Part of the take would fund a proposed Gaming and Betting Transformation Fund aimed at emerging operators. Horse racing tax proceeds would be reinvested in the equine industry, with a particular focus on traditional horse racing known as Umtelebhelo.

Operators warned that the increases could be destabilising. Katleho Thejane of Goldrush Gaming Group told lawmakers that bingo and casino venues are already under strain from Covid-19 impacts, legal disputes and online competition. He said proposed increases of “over 300%” could lead to closures. According to local newspaper The Witness, some operators currently pay around 3% of earnings in tax, while those with about R200 million (approximately $12 million) in annual earnings could see effective rates above 15% under the new framework. The provincial treasury expects the changes to raise between R50 million and R100 million a year, but Thejane argued the province risks losing revenue if businesses shut, noting that some branches are already closing.

From the racing side, Nqobile Kunene of eThekwini said rural horse racing supports higher standards but lacks infrastructure, finance and technical skills, and called for those gaps to be addressed before new rules are set. Tim Brauteseth, finance spokesperson in the province for the Democratic Alliance, which is part of the governing coalition, backed the bill, saying it would reduce the risk of revenue being lost through loopholes or misinterpretation.

Committee chair Mthandeni Dlungwana said the first hearing drew significant public interest. Further hearings are scheduled for Dundee on 1 December and Richards Bay on 2 December, with written comments open until 15 January 2027.

The provincial debate comes alongside a potential national change. National Treasury has proposed a 20% tax on the gross gambling revenue of online betting and interactive gambling operators, in addition to existing provincial taxes. Finance Minister Enoch Godongwana said in his 21 October medium-term budget statement that consultations are ongoing, including on implications for provinces and the regulated market, with the final design to be announced in the February 2027 budget.

Why it matters

For the South African market, the bill signals a firmer stance on gambling taxation at provincial level, coupled with a possible national layer for online activity. Depending on final rates and implementation, operators in KZN may face higher effective tax burdens that could compress margins, reduce venue footprints, or prompt shifts in product mix. The proposed Transformation Fund and earmarked reinvestment into the equine sector indicate policy goals that go beyond revenue-raising, potentially reshaping participation and sustainability in parts of the market.

For UK readers, the direction of travel in South Africa may offer a window into how jurisdictions could recalibrate gambling taxation and oversight after pandemic-era disruptions. If costs rise for operators, bettors may eventually see changes in pricing, promotions or product availability. As always, outcomes depend on technical details still under consultation and any adjustments made during the legislative process. For general context on how levies interact with products and payouts, see our overview in Guides: Gambling tax.

What to watch

1. Changes to the KZN bill after the Dundee (1 December) and Richards Bay (2 December) hearings, as well as insights from written submissions accepted until 15 January 2027.
2. Clarity on specific rates, any phased introductions, and mechanics of the proposed Gaming and Betting Transformation Fund.
3. Operator responses in KZN, including potential venue consolidation or format shifts if tax burdens rise.
4. The final design of National Treasury’s proposed 20% tax on online betting and interactive gambling, due in the February 2027 budget, and how it may stack with provincial regimes.
5. Practical impacts on bettors and products if pricing changes follow, especially in sports markets and casino games that depend on margin and house edge.

Further reading

• Guides: Gambling tax (/guides/gambling-tax)
• Sports betting basics and markets (/sports-betting)
• Understand house edge in casino games (/tools/house-edge-calculator)

Related guides

• [Matched Betting](/bet-calculator/matched-betting)
• [Sports Betting Glossary](/guides/sports-betting-glossary)
• [How Do Odds Work In Betting Uk Guide](/guides/how-do-odds-work-in-betting-uk-guide)

Source

This article is based on the report "KwaZulu-Natal opens hearings on gaming and betting tax overhaul" published by iGaming Business on 12 November 2026.

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