Luckily in South Africa, in most cases, casino winnings are seen as being exempt from gambling online taxes, as are lottery winnings and competition winnings too. The withholding of taxes from gambling winnings. In doing so, the following issues were addressed: Identification of the current and future withholding taxes in effect in South Africa (Chapter II); 8 Casino Association of South Africa newsletter April 2011 Issue 22 pg 2. And that you are not bound to pay taxes on it. Online casinos are perhaps the second most popular form of online gambling in South Africa that can win you a massive jackpot, and it’s not the first time someone has managed to cash out a huge sum. Hence, it is normal to ask, even in these scenarios, whether tax is applicable on. Players may be surprised to learn that in the vast majority of cases, South Africans do not have to pay tax on lottery, casino or competition winnings, allowing them to enjoy the total sum. The article looks at three scenarios: Winning R5 million in the National Lottery, winning R200,000 at the local casino and winning R100,000 in a competition.

• Gambling Winnings Tax South Africa 2020
• Gambling Winnings Tax South Africa 2019
• Gambling Winnings Tax South Africa Gauteng
• Gambling Winnings Tax South Africa News24

Tax Victory for KenyanBetting Operators

In the latest news from Kenya’s sports betting industry, Nairobi’s Tax Appeals Tribunal has sided with Betin and SportPesa. This is according to reports in the 7 November edition of African news site Business Daily.

Gambling Winnings Tax South Africa 2020

The Tribunal is said to have agreed with the operators that the new 20% Kenyan betting tax be applied only to net winnings and not, as was originally stipulated, to bettors’ actual stakes.

Kenya’s Changing BettingLaws

In May 2019 Kenya’s newer, stricter GamblingBill wasunveiled. The aim of this piece of legislation is to protect customers, supporthealthy gambling behaviour and generate government income in the form ofgambling tax revenues. A 10% tax increase actually took effect on 1 July 2018,and the Kenya Revenue Authority (or KRA) has been after local operators to payup since then.

The KRA’s initial amended definitionof winnings was that it was all monies paid to winning bettors, including thereturn of the original stake. Until all outstanding taxes were paid, thecountry’s 29 legal bookmakers were suspended by the Betting Control andLicensing Board, or BCLB. This took effect on 1 July 2019.

Companies disagreed with the original amended definition, although SportPesa and Betin did ultimately comply in order to be allowed to resume local operations. Before settling their “outstanding debts” they had been forced to lay off hundreds of members of staff and to suspend their business dealings in Kenya.

Gambling Winnings Tax South Africa 2019

Then on 19 September 2019 the KenyanParliament’s Finance Committee proposed the 20% excise rate for the 2019/2020budget. The proposal was voted through almost a week later, on 25 September.This is what SportPesa and Betin appealed against with the Tribunal.

Gambling Winnings Tax South Africa Gauteng

The Tribunal’s Ruling

In addition to saying that the 20%tax applies to net winnings only, the Tax Appeals Tribunal has also ruled thatindividual bettors must take more responsibility for tax remittance. The onusno longer falls on the operators to the same degree. Insiders explain that theTribunal’s intention is to shield sportsbooks from prosecution by what is nowconsidered a very aggressive government administration.

Gambling Winnings Tax South Africa News24

The Future Remains Unclear

Although SportPesa and Betin wereable to resume their Kenyan activities after settling debts, while the issuesthat the Tribunal ruled on were still unresolved they could not operator atfull capacity. Now, in the wake of the Tribunal’s findings, the BCLB has saidthat any suspended businesses will need to apply for brand new licences.

As the betting industry in Kenya and aroundAfrica continues to mushroom, bolstered by the mobile technologyrevolution, authorities continue to seek gambling tax revenue as a way tobolster their coffers. In the past week, the KRA set its sights on Betika andsought Sh1.75 billion (or $17 million) in outstanding taxes.

Since Betika was among the few BCLB-licensed firms that imposed KRA’s original tax amendments, the fact that the KRA has now gone after them could be perceived as very mercenary. Of course, if the monies gained from revenues really do benefit ordinary Kenyan citizens, there will be few criticisms leveled at the government for imposing the taxes. Whether that will indeed be the case remains to be seen.