What your gambling win means for your tax
Published on 25th September, 2025 at 11:59 am
There are few things as exciting as that unplanned win, but before you bag that money: do you owe any of it to SARS? We take a closer look at what a gambling win in South Africa means for your tax obligations.
Reading time: 3 minutes
In this article, you’ll learn:
- Stats on South Africans’ spending on gambling.
- Tax obligations for winnings.
- How to keep yourself compliant.
- What to keep in mind before your next gambling spend.
According to New24, in 2023-2024 alone, South Africa’s gambling turnover exceeded R1 trillion. That’s “Trillion” with a “T”. The industry is also seeing rapid growth, with an increase of 550% in the last four years, and it’s not hard to see the allure.
Once upon a time, gambling was confined to casinos, racetracks and the odd petrol station scratch card. Today however, gambling platforms are available on every device, at any time of the day, and streamlined for easy access and payment options. Couple that with the fact that gambling has been shown to increase the feel-good hormone dopamine in our bodies (even when we lose, according to the Responsible Gambling Council), it’s clear to see why so many of us are easily hooked. Thrills and dangers aside, with money made on gambling, there are obligations that may be waiting for you to consider.
Tax obligations on your winnings
Before you bank those winning, there are a few things to consider if you’ve won money through any form of gambling.
- A 15% withholding tax now applies: if you’ve won R25 000 or more, 15% will be deducted from the total win before paid to you. Any winning under R25 000 will be paid to you in full. This applies to all forms of gambling, including the national lottery, casino payouts, betting, as well as online gambling.
- While winnings under R25 000 will be paid out to you in full with no declaration required, it is recommended by many experts to still declare the amount to SARS (you can do this by filling it out on your SARS eFiling, or with the help of a registered tax professional. Remember to keep all documentation for future reference).
- However, if you are a professional or frequent gambler, every winning forms part of your income and will thus be taxed as regular income regardless of the amount.
- Remember, while the new withholding tax has been implemented, there are future tax considerations to keep in mind. For instance, if you were to deposit or invest your winnings, any income generated will be taxed normally.
Keep this in mind
Despite studies showing that the vast majority of regular gamblers lose money over the long-run and that ongoing wins are highly unlikely, unexpected wins can be used for your future wealth:
- Find clever ways of investing that money. Read more here.
- Pay off pesky debt to free up your budget. Find out how.
- Make the most of your winnings by consulting with a registered financial adviser.
Remember, while it’s harmless fun for many people, gambling is a recognised addiction. If you, or anyone you know, might be struggling with gambling, there are many resources available to learn more, or to seek help.
- More information on the realities and dangers of online gambling.
- Free support available at The South African Responsible Gambling Foundation.
- Join a supportive and healing community at Gamblers Anonymous South Africa.
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