As the boom in online gambling across the country gathers pace, the government is planning to hike taxes to contain addiction risks.
According to Reuters, the government has proposed a national 20% tax on online gambling profits, which it says would more than double the revenue from the sector to 10 billion rand ($607 million) annually from 4.8 billion currently. The draft bill will be presented to lawmakers this year, and the final tax proposal will be introduced in February 2027, according to the National Treasury. Several political parties represented in parliament have expressed support for the tax.
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IOL reports that over 40% of working South Africans now gamble frequently, and many are doing so to bridge monthly shortfalls, according to new insights from Old Mutual Corporate.
Financial experts are calling for a shift in how employers respond to financial stress, noting that there are no benefits to frequent gambling. With the rise of online gambling, the matter is far from being resolved.
The average South African sees gambling as a way to relieve financial stress. Financially stressed employees exhibit decreased focus and productivity at work. Many individuals are resorting to gambling as a way to alleviate household pressures. However, these pressures are spilling over into the workplace, straining and affecting daily performance.
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Keri-Lee Edmond, head of business intelligence at Old Mutual Corporate, says while gambling is more pronounced among younger and lower-income employees, it is by no means confined to these groups.
“Gambling activity is evident across income bands and demographics, reflecting debt-driven pressure and the rising cost of living. Under these conditions, gambling is increasingly becoming part of how people manage their money day to day, with scarce income being directed towards high-risk avenues to cover expenses and keep up with financial obligations.”
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Feature Image: Pixabay
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