Johannesburg, South Africa — African States Increase Gambling Taxes Amid Soaring Addiction Rates.
In a bid to tackle the escalating issue of gambling addiction, several African countries are raising taxes on the gambling industry. South Africa, the continent’s largest gambling market, has seen a dramatic surge in both online and offline gambling, leading to a corresponding increase in addiction rates.
According to the National Gambling Board, South African adults accounted for two — thirds of the continent’s online gamblers, wagering a record 1. 5 trillion rand ($93 billion) in the 2024-25 financial year. This has been accompanied by a significant rise in gambling addiction, a concern highlighted by Sibongile Simelane-Quntana, the executive director of the South African Responsible Gambling Foundation.
Simelane — Quntana noted that distress calls to the national helpline for gambling addicts have surged by over two-thirds in the past year, reflecting the country’s desperation amidst high unemployment rates.
In response to this challenge, South African authorities are considering a national 20 percent tax on online gambling profits, which they estimate would more than double the sector’s revenues to $607 million annually.
However, industry groups warn that such a tax could drive gamblers towards illegal gambling hubs.
The CEO of the South African Bookmaker’s Association cautioned that a more effective approach would be to crack down on illegal gambling sites. Senegal, another African country addressing gambling addiction, announced additional gambling taxation as part of its economic recovery plan last year.
A gambling addict in Dakar expressed his desperation, saying, “I often feel bad because what hurts me is knowing how hard I work, the difficulty of my job, and I take all that money and bet it on games that I lose.”.
Seydina Mohamed Moustapha Gueye, the head of a Senegalese association for gambling addicts, criticized the tax as a superficial solution, stating that “today we all agree that we cannot treat or cure addiction through taxation.”
The situation underscores the complex challenge of addressing gambling addiction in Africa, where both the industry and the problem are rapidly growing. Further details are expected as governments continue to explore strategies to mitigate the harms of gambling addiction.
