Operator Warnings Dominate KwaZulu-Natal Hearings on Proposed Gaming and Betting Tax Increases

KwaZulu-Natal lawmakers have opened public hearings on the KwaZulu-Natal Gaming and Betting Tax Bill, 2026, which would raise taxes across casino gaming, bingo, bookmaking and horse racing while adding new levies.

The provincial legislature's Finance Portfolio Committee held the first hearing in Pietermaritzburg on 10 November. Neli Shezi, deputy director general at the KwaZulu-Natal Provincial Treasury, presented the bill, which Finance MEC Francois Rodgers tabled in June. The measure seeks to modernise the provincial framework and align it with national legislation. Revenue would flow to the province, with part directed to a proposed Gaming and Betting Transformation Fund for emerging operators. Horse racing tax proceeds would be reinvested in the equine industry, particularly traditional Umtelebhelo racing.

Operators Warn of Closures Under Sharp Tax Rises

Katleho Thejane, an executive at Goldrush Gaming Group, told the committee that bingo and casino operators already operate under strain from Covid-19 effects, legal disputes and online competition.

"The industry is currently under tremendous pressure. If the proposed tax increases of over 300% are approved, the industry could shut down," Thejane said.

Some operators currently pay about 3% of earnings in tax. Those generating around R200 million ($12 million) a year could face effective rates above 15%. The provincial treasury projects the changes would raise R50 million to R100 million annually, yet Thejane warned the province risked collecting nothing.

"The provincial government could end up not getting a cent because of the proposed increases. As we speak, some branches are closing," he said.

Nqobile Kunene, a racecourse operator from eThekwini, said rural horse racing needs infrastructure, finance and technical skills addressed before new standards are imposed. Tim Brauteseth, finance spokesperson for the Democratic Alliance, backed the bill to prevent revenue loss through loopholes or misinterpretation. Mthandeni Dlungwana, committee chair, noted strong public interest. Further hearings will occur in Dundee on 1 December and Richards Bay on 2 December, with written comments open until 15 January 2027.

The provincial process coincides with a national proposal for a 20% tax on gross gambling revenue from online betting and interactive gambling operators, on top of provincial taxes. Finance Minister Enoch Godongwana said in his medium-term budget statement on 21 October that consultations continue, with final design to be announced in the February 2027 budget, according to iGaming Business.

Revenue Risks in Balancing Modernisation and Viability

The operator testimony underscores a concrete risk that tax increases intended to generate R50 million to R100 million could instead shrink the tax base through closures, delivering the opposite outcome. This danger grows when layered against the separate national 20% online levy. The scheduled hearings and comment period through mid-January 2027 provide a narrow window for evidence-based adjustments that protect both provincial revenue targets and the operational sustainability of the sector ahead of the February national decision.