South African Gambling Tax
Posted By admin On 29/07/22Gambling Tax in South Africa Lottery winnings. Lottery wins are not included in an individuals taxable income and are generally exempt from taxes. You would need to. The amendment bill, which has been a work-in-progress since 2016, aims to challenge South Africa’s main gambling legislation by implementing stricter protocols and revising current regulations. According to figure put together by the governing body of land-based operators, the Casinos Association of South Africa, in 2018 the gross gambling revenue for the country dropped by 2%, something the CASA believes can be firmly laid at the door of the illegal operators. The tax revenue that is raised by land casinos is seemingly making the South African government think twice about their hard-line stance. This could have huge ramifications for the online gambling world – which is still technically outlawed.
- South African Gambling Tax Calculator
- South African Gambling Tax Records
- South African Gambling Tax Collectors
- South African Gambling Act
Gambling in South Africa has been heavily restricted since 1673, with South Africa's Gambling Act of 1965 officially banning all forms of gambling except betting on horse racing which existed as a sporting activity.
In the late 1970s casinos started operating in the bantustans (the nominally independent areas called homelands) of Bophuthatswana, Ciskei, Transkei and Venda. Only native South Africans lived there and most citizens couldn't access those gaming establishments. By 1995 an estimated 2000 illegal casinos were believed to be operating within the country. In 1994, when the new democratic government came to power, all forms of gambling were legalised. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery. Horse racing was also proclaimed gambling activity.[1]
The National Gambling Act of 1996 made provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country. It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces and provided information on liability. It also established the National Gambling Board, an organisation responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery and other forms of gaming.[2]
In 2004, another National Gambling Act repealed the Act of 1996. And in 2008 The National Gambling Amendment Act was introduced.
Prevalence and value[edit]
According to the 2006 study the most popular forms of gambling in South Africa were the National Lottery (96.9% participation), slot machines (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they have never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.[3]
In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totalled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos.[4] In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.[5]
South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016.
Types of gambling[edit]
South African National Lottery[edit]
The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totalled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa. South Africa known as one of the largest countries participate in UK49s lottery draw operated by Ladbrokes Coral.
Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.[6]
Casinos[edit]
Casinos operate in all metropolitan areas in South Africa. With the largest being the Rio Casino Resort, which is also the largest casino in Africa and the fifth-largest casino in the world.[citation needed] Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa's largest casinos.
Horse racing[edit]
On-track betting on horse races was the only legal form of gambling in South African until 1996. Due to its complexity and the difficulty of attracting new players it did not effectively compete with the newly introduced National Lottery and casino games.[7]
Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.[8]
Online gambling[edit]
Licensed gambling sites[edit]
Each of South Africa's nine provinces has a gambling and racing board. To offer online betting bookies must be licensed by one of these boards. Currently the Western Cape Gambling and Racing Board (WCGRB) is largest provider of online bookmaker licenses.[9] South Africa residents can use these online betting sites legally. For bets involving horse racing 6% is deducted from winning to cover VAT. As of May 2012, no additional tax is charged to recreational bettors, and recreational gambling winnings are not considered income for income tax purposes.[10]
Online gaming laws[edit]
The National Gambling Act 2004 prohibited both offering interactive gambling services and engaging in interactive games (games on the Internet).[11] This rule applies to all online operators, licensed in any jurisdiction. It's however important to note interactive gambling relates specifically to games such as casino, poker and bingo. Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business holds the necessary provincial bookmaker's licence(s), or is using a website with proper licence(s).
The National Gambling Amendment Act of 2008 that was published in July 2008 was meant to be an attempt to legalise interactive gambling in the country and make provisions for the regulation of this market. The Amendment Act was actively confronted by the interested parties (land-based gambling houses and anti-money laundering authorities). For this reason, the Act hasn't come into power yet.
On 20 August 2010 even online gambling offered through servers located outside the country was banned in South Africa. This was the result of the North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country. Consequently, both offering gambling services online and gambling online became illegal. The only exceptions are province licensed horse racing and online sports betting. Casino sites, individuals, internet service providers and banks that process payments for online gamblers are subject to a fine of R 10 million or 10 years of imprisonment, or both. Mass media channels that transmit or facilitate advertisement of online gambling services (TV and radio, newspapers and magazines, outdoor advertising agencies) are also to be held liable.[12]
The South African Department of Trade and Industry also suggested to consider penny auctions a type of online gambling and illegalise them. The National Gambling Amendment Act of 2008 may come into force after an appeal to a high court ruling against 'interactive gambling' is heard.[13]
References[edit]
- ^Stephen P. Rule; Terezinha Da Silva; Chris Sibanyoni (2000). The Social Impact of Gambling in South Africa. HSRC Press. p. 8. ISBN0-7969-1971-2.
- ^National Gambling Act, 1996 [No. 33 of 1996] – G 17307
- ^'Problem Gambling Prevalence Study 2006'(PDF). National Responsible Gambling Programme. Archived from the original(PDF) on 9 October 2006. Retrieved 22 September 2008.
- ^'National gambling statistics for the financial year ending 31 March 2007'. National Gambling Board. Archived from the original on 7 October 2008. Retrieved 22 September 2008.
- ^'Illegal Gambling statistics for the financial year ending 31 March 2006'. National Gambling Board. Archived from the original on 6 August 2007. Retrieved 22 September 2008.
- ^'How much is the South African gambling market worth?'. www.bettinggods.com. Retrieved 6 January 2018.
- ^'Speech by Thibedi Majake (CEO of the National Gambling Board) at the 2006 national convention of Racing South Africa'. Racing South Africa. Retrieved 22 September 2008.[dead link]
- ^'Sport: Horse racing in South Africa'. SouthAfrica.info. Archived from the original on 16 September 2008. Retrieved 22 September 2008.
- ^WCGRB Licensed Betting Sites
- ^Legal South Africa Betting Sites
- ^'Online Gambling Remains Unlawful in South Africa'. Archived from the original on 26 April 2012. Retrieved 2 December 2011.
- ^Online Gambling Banned in Africa
- ^Online Gambling in SA: Is It Legal?
External links[edit]
South Africa has gambling laws similar to Australia. There are nine provinces each with their own gambling and racing board. These are the equivalent of gambling commissions. In order to offer online betting bookies must be licensed by one of these boards. As a punter living in South Africa, you can use any licensed bookie legally regardless of which province they are licensed by. When betting sports, winnings are not taxed, but for horseracing a 6% tax in the form of VAT is deducted from winnings. As of 2015, no additional tax is charged to recreational bettors, and there is no need to include gambling winnings on income tax returns.
List of Licensed South African Bookies
There are many South African licensed bookies. A list of some of them we assembled in March 2015 is as follows.
- bettingworld.co.za has online betting from one of the largest SA corporate bookies. It is licensed by the Gauteng Gambling Board.
- betxchange.co.za is the online site of Keith Ho which is a licensed bookmaker with the Gauteng Gambling Board.
- interbet.co.za is licensed by WCGRB.
- krugerbets.com – is licensed by the KwaZulu Natal Gaming and Betting Board.
- sportingbet.co.za is licensed by the Western Cape Gambling & Racing Board.
- sportsbet.co.za is a traditional family owned South African bookie also licensed by the Western Cape Gambling & Racing Board.
- sunbet.co.za is another licensed by the Western Cape Gambling & Racing Board.
- tabonline.co.za is the online account of Tab which horse racing punters likely need no introduction to. It is official tote of South African horseracing with R50 million paid out every week.
- worldofsport.co.za is the Western Cape Licensed Bookmaker Marshalls.
- wsb.co.za is World Sports Betting licensed by the Gauteng Gambling Board.
Sites licensed in South Africa tend to understand what local punters are looking for, and provide more personable support. Most have betting odds on all the popular bet leagues. This includes Super Rugby, Currie Cup, ABSA Premiership, MiWay T20 Challenge and other sports. You can also bet on soccer around the world, and on American sports such as NFL, MLB, NBA, NHL etc. This names just some of what’s available for wagering.
Licensing and Odds Format
One thing that is confusing is often even sites licensed by the same gambling commission use different odds formats. For example Sportsbet and Sportingbet are both licensed by the Western Cape Gambling and Racing Board (WCGRB). This can be confirmed on the WCGRB License holders’ page. Between the two sites there is confusion regarding odds formats. Traditional South African bookies, such as Sportsbet, use a decimal odds format rest of the world refers to as Hong Kong Odds. Take for example a Currie Cup match with the following odds:
Lions: 0.91
Draw: 20.00
Natal Sharks: 0.91
The odds are how much you’ll get paid in winnings for each rand staked. For example, if you bet R 100 on the Lions and win, you get paid R 100 * 0.91 = R 91 AND you also get back your R 100 stake.
At corporate bookies, such as Sportingbet, decimal odds also include the stake. Here the same odds would be listed as:
Golden Lions 1.91
Draw: 21.00
Natal Sharks: 1.91
South African Gambling Tax Calculator
These are the exact same odds – the only difference is these odds represent total return (stake + win). If you bet the same R 100 on Lions and win you get back R 100 * 1.91 = R 191. Of this, R 100 was your stake and your winnings are the same R 91. There’s no difference in the payouts, only in how the odds are displayed. This is important to understand to avoid confusion and/or the false feeling the payout has been shorted. Just know at some bookies the odds include the stake, and others the odds represent just the winnings.
How to Deposit and Withdrawal
When betting online at licensed South African bookies the banking options are not a mystery. These websites are 100% legal to use, and therefore clearly display their policies for making deposits and getting payouts. The most common method is credit or debit card, but most also accept instant bank transfer, UKash, Skrill and Entropay.
Credit Card Payments
Using a credit card or debit card issued from a South African bank is the most popular way to deposit at ZAR bookies. Each betting site has a different policy regarding which cards are accepted and if payouts can be processed to the card. As a general rule most accept VISA, MasterCard, Delta and Maestro cards, and most will only issue credit/debit payouts up to the rand amount deposited. To get payouts for our excess winnings you’ll need to use a second banking method such as bank transfer or paper cheque.
Traditional Bank Transfer
For players without a credit or debit card it’s possible to deposit and withdrawal via traditional bank transfer. This involves getting a reference code from the betting website to send a traditional bank transfer. Once the payment has left your bank account, you’ll need to contact the betting site back to notifying them of the payment. They’ll then confirm the payment within 1-5 days (most often in just 1 day) and manually credit your betting account with the rand amount sent. This process is well explained on betting sites accepting this method.
Ukash – Fast Transfer with Standard Bank
South African Gambling Tax Records
Much faster than traditional bank transfer is using Standard Bank AutoPay to purchase Ukash. If you don’t have already have a bank account with Standard Bank, it is well worth opening an account with them to use this feature. To add AutoPay capabilities to your Standard Bank account, inquire with your branch (or see details here).
Other Deposit Methods
Each bookie has its own unique banking methods. The three covered so far are the most popular, but some bookies also accept SID Payments Instant EFT via Standard Bank, ABSA, Nedbank and First National Bank. Many others accept EntroPay, Skrill and other e-wallets.
South African Gambling Tax Collectors
Foreign Betting Sites Supporting South African Rand (ZAR)
South African Gambling Act
There’s a lot of confusion whether or not using foreign betting sites from SA is legal. What we do know for sure is that online gambling is illegal in South Africa, however betting on sports and horse racing is fully legal. If players were only to bet sports and races, and avoid poker and casino, using foreign betting sites might be legal. No court has ruled on this. In short, we are not sure if using foreign betting sites is legal or not. Consult with your own authorities or legal professionals.
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