The government of South Africa has fired the CEO of Gauteng province’s gambling regulator, Karabo Mbele, over charges of gross misconduct and abuse of public resources.
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South Africa to introduce iGaming tax reforms
The South African government has proposed a tax amendment to introduce a unified online gambling tax for improved cross-country compliance, encouraging operators to register with specific provincial gambling boards.
Initially, South Africa adopted a province-based tax between 6% and 20%, where the tax rate depends on the province and the type of gambling. This was criticized by the industry as being encouraging for black market operators.
The proposed reform is a 20% tax on licensed online gambling, which will be added to the provincial taxes and make up a tax rate between 26% and 29%.
The National Gambling Act of 2004 in South Africa banned all online casino games. The new proposal shows that the Act is outdated and hasn’t kept pace with industry development.
The government hasn’t yet called for the legalization of gambling; however, the tax proposal leaves room for major regulatory shifts in the future.
South Africa’s Democratic Alliance (DA) is pushing for significant changes in the country’s online gambling regulations with the introduction of the Remote Gambling Bill.
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