Tax on gambling winnings in South Africa

The short answer

For most South Africans who bet or play for fun, gambling winnings are not taxed. You don’t pay income tax on a winning accumulator at Hollywoodbets, a slot win at Betway or a Lotto jackpot. There are three situations where that changes:

1. You gamble as a business (a professional gambler).
2. You win at a site that isn’t authorised under South African law, such as an offshore casino.
3. Your winnings are in crypto, and the crypto changes value.

Why winnings are usually tax-free

South African income tax applies to “gross income”, which excludes receipts of a capital nature. SARS and the courts have long treated an occasional gambling win as a windfall, a lucky receipt that isn’t produced by a trade or a job. So it isn’t income.

Capital gains tax (CGT) could in theory catch a windfall, but the Eighth Schedule of the Income Tax Act tells individuals to disregard capital gains and losses from gambling, games and competitions that are authorised by and conducted in terms of South African law. That covers:

• Provincially licensed bookmakers and their betting products, including Lucky Numbers.
• Land-based casinos licensed by a provincial board.
• The National Lottery.

Operators pay their own taxes instead. Provinces charge gambling taxes and levies on bookmakers and casinos, usually calculated on their gross gambling revenue, and that cost is built into the odds and the games.

Professional gamblers

If gambling is how you make a living, SARS can treat your winnings as income from a trade. The factors that point that way are the ones you’d expect: you gamble regularly and systematically, it’s your main source of income, you use a planned method to make a profit, and you treat it like a business.

In that case winnings are taxed as income at your marginal rate, and you may be able to deduct losses and costs. Very few people meet this test. Being a keen punter who wins some and loses more doesn’t make you a professional.

Offshore casino winnings

This is where most of the uncertainty sits. Online casino gaming isn’t licensed in South Africa (see is online gambling legal in South Africa), so a win at an offshore casino is not “authorised by and conducted in terms of the laws of the Republic”. That means the CGT exclusion for gambling doesn’t apply to it.

In practice, for a natural person:

• A win would be a capital gain, and the annual capital gains exclusion (R40,000 at the time of writing) applies first.
• Only the amount above the exclusion, after other gains and losses for the year, would be included in your taxable income at the inclusion rate for individuals.
• Losses at offshore sites are a capital loss in theory, but they’re hard to prove and the same exclusion rules apply.

For a player who wins a few thousand Rand now and then, this usually never adds up to tax payable. For someone who lands a six-figure jackpot at an offshore site, it might. Keep your transaction history and get advice.

There’s also the National Gambling Act itself, which allows winnings from unlawful gambling to be forfeited. That’s a separate legal risk to tax, and another reason a big offshore win is worth a professional opinion.

Crypto winnings

Many offshore casinos pay out in crypto. SARS treats crypto assets as assets for tax purposes, so:

• If you receive crypto worth R10,000 and later sell it for R14,000, the R4,000 increase is a gain you may need to declare.
• Swapping one coin for another (for example Bitcoin to USDT) counts as a disposal too.
• A stablecoin such as USDT barely moves against the US dollar, but it still moves against the Rand.

Our crypto casino guide explains how deposits and withdrawals work, and why converting to Rands quickly keeps your records simple.

Interest on your winnings is taxable

Once a win is in your bank account, anything it earns is normal income. Interest above the annual interest exemption (R23,800 for people under 65 at the time of writing) is taxable. Dividends from shares you buy with your winnings are taxed under the dividends tax rules. If you invest a large win, tell your tax practitioner where the capital came from.

Record keeping: why it still matters

Even when winnings aren’t taxable, a sudden large deposit can raise questions from your bank or from SARS. Banks have their own duties under FICA to understand where money comes from. Keep:

• Withdrawal confirmations from the bookmaker or casino.
• Your account statement showing deposits, bets and withdrawals.
• For crypto, the exchange records showing the Rand value on the day you received and sold it.

This takes a minute to download and can save a lot of stress later. Licensed SA sites will also have your FICA documents on file, which helps show the money came from your own verified account.

Is there a withdrawal tax on winnings?

No. National Treasury proposed a withholding tax on large gambling winnings in the 2010s, but it was not implemented. Licensed SA bookmakers pay out your full winnings; they don’t deduct tax. If a site says you must pay a “tax” or “release fee” before it will process a withdrawal, treat it as a scam. Legitimate operators never ask you to deposit more to unlock your own money.

Bonuses and tax

Bonus money isn’t taxed either, but remember that bonus winnings are only yours once you’ve met the wagering requirement and any maximum cashout cap. Until then they aren’t winnings at all.

Quick reference

Keep it in proportion

Losses are far more common than big wins, and no tax rule changes the maths of the house edge. Gamble with money you can afford to lose, set limits, and if it stops being fun, call the National Responsible Gambling Programme on 0800 006 008.