Tax on Betting Winnings in South Africa: What SARS and the Law Say
Two different things get called tax on betting winnings in South Africa: income tax, which is a matter between you and SARS, and the betting tax and levy that a bookmaker collects on winning bets under provincial law. This guide sets out what SARS's own guides and the provincial regulations say about each, with links to the documents. It is general information, not tax advice.
On this page
Two kinds of tax, two different collectors
The first is income tax, administered by the South African Revenue Service (SARS) under the Income Tax Act 58 of 1962. Whether an amount you won belongs in your tax return is decided by that Act and by the facts of your own case.
The second is a provincial tax and levy on winning bets. In the Western Cape the regulations make the bookmaker collect it and pay it over to the provincial gambling board; other provinces have their own laws.
The sections below take the two one at a time, each with the document it comes from.
What SARS counts as gross income
SARS's guide Taxation in South Africa (dated 30 September 2026, a general overview that SARS says is not a legal reference) explains the first step of working out taxable income: determine "gross income" as defined in section 1(1) of the Act. For a resident that is "the total amount of worldwide income, in cash or otherwise, received by or accrued to" the person during the year, "excluding receipts or accruals of a capital nature", apart from the specific amounts the definition lists.
The definition turns on whether an amount is income or a receipt of a capital nature; this part of the guide does not mention betting. It points to the Eighth Schedule of the Act for capital gains and losses, and SARS's capital gains guide is where gambling is named directly.
Capital gains tax and gambling winnings
SARS's Comprehensive Guide to Capital Gains Tax (Issue 9, 5 November 2020) explains paragraph 60 of the Eighth Schedule. In its words, paragraph 60 "provides as a general rule that capital gains and losses arising from gambling, games and competitions will not be subject to CGT", and it "encompasses all manner of activities such as horse racing, the National Lottery, casino winnings and the like".
The same section lists three cases where such gains are subject to CGT: when they are derived by companies, close corporations or trusts; when they arise in respect of foreign gambling, games and competitions; and when they are derived from illegal gambling, games and competitions in South Africa. Capital losses from gambling are disregarded in every case.
SARS gives its reason too: "Local gambling activities contribute to the fiscus indirectly in the form of betting taxes and value-added tax". Which of these rules fits your winnings, and whether they are capital at all, is a question for SARS or a tax practitioner.
When betting is treated as a trade
The Taxation in South Africa guide describes section 20A, which ring-fences the assessed losses of certain trades carried on by natural persons who meet specified criteria, and its list includes "any form of gambling or betting practised by that person or any relative". A ring-fenced loss is carried forward and set off only against income from that same trade.
On what makes an activity a trade, the guide says it "is a question of law that depends on the facts and circumstances of the specific case", and that "the intention of the person to carry on a trade profitably is of decisive importance". The guide does not set a number of bets or a sum that turns a punter into a trader, so this page does not either.
The betting tax and levy bookmakers collect
In the Western Cape, the Gambling and Racing Regulations published by the Western Cape Gambling and Racing Board say that "the percentage of tax to be collected by the holder of a bookmaker licence in respect of all winning bets shall be three per cent" (regulation 70), and set the betting levy collected on winning bets at another three per cent (regulation 71). The Board pays the tax into the Provincial Revenue Fund and the levy on to the holder of the province's totalisator licence. Other provinces have their own laws.
Bookmakers' own terms say where they apply it. Apexbets' terms say "All winning bets in respect of horse racing only are subject to taxes and levies imposed by the provincial government (currently collectively 6%)", and that Apexbets retains them and pays them over on the customer's behalf. betXchange's terms apply a 6% betting tax to the winning amount on horse racing, including a multiple with a racing leg, deducted from each winning bet, and SuperSportBet's racing rules say fixed odds place bets carry 6% betting tax. Our horse racing guide quotes these lines with the rest of each bookmaker's racing rules. The regulations speak of all winning bets; the three bookmakers' terms quoted here apply the 6% to horse racing.
Before you bet, read the tax clause in your own bookmaker's terms. Every licensed bookmaker answers to the provincial board named in its licence; how to check a licence shows where to find it.
Getting an answer for your own case
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Read SARS's own guides
Taxation in South Africa covers gross income and section 20A; the Comprehensive Guide to Capital Gains Tax covers paragraph 60. -
Ask SARS
SARS lists its contact routes on its contact page, including a branch finder and appointments. -
Or ask a registered tax practitioner
SARS's guide itself suggests contacting your own tax advisor or tax practitioner. SARS's tax practitioners page lets you confirm whether a practitioner is registered.
Before you place a bet
Whatever the tax position, every bet can lose in full. Bet only money you can afford to lose and set a limit before you deposit.
If betting stops feeling like a choice, the South African Responsible Gambling Foundation answers on 0800 006 008, and our responsible gambling page has more help. You must be 18 or older to bet.
Tax on betting winnings FAQ ❓
Do I pay income tax on betting winnings in South Africa?
It depends on your case. SARS's guide says gross income excludes receipts of a capital nature, and its capital gains guide says gains from gambling are generally not subject to CGT, with exceptions. Where betting is carried on as a trade, section 20A can ring-fence its losses. Ask SARS or a registered tax practitioner.
Is there capital gains tax on gambling winnings?
SARS's Comprehensive Guide to Capital Gains Tax says paragraph 60 of the Eighth Schedule excludes gambling gains as a general rule. The exceptions it names: gains of companies, close corporations or trusts, gains from foreign gambling, and gains from illegal gambling in South Africa. Gambling losses are disregarded.
What is the 6% tax on horse racing winnings?
It is a provincial tax and levy that the bookmaker collects on winning bets, not income tax. In the Western Cape the regulations set the tax at three per cent and the betting levy at three per cent. The bookmakers' terms we quote put it at 6% on horse racing wins.
Does SARS treat a professional gambler differently?
SARS's Taxation in South Africa guide lists "any form of gambling or betting" among the trades whose losses section 20A can ring-fence, and says whether an activity is a trade depends on the facts and the person's intention to trade profitably. SARS or a tax practitioner can tell you how it applies to you.
Is this page tax advice?
No. It is general information that quotes SARS's published guides and provincial regulations, with links. Your own position depends on facts this page cannot know. Contact SARS or a registered tax practitioner before you rely on any of it.