Gauteng has lost an estimated R282 million in gross gambling revenue between the 2019/2020 and 2024/2025 financial years due to the failure to establish a provincial licensing framework for online betting platforms. This has resulted in Gauteng losing its place as the top collector in Gross Gambling Revenue in the country. Western Cape is leading, followed by Mpumalanga.
The drop in gross gambling revenue collection is happening under Premier Panyaza Lesufi’s watch. It has had a significant impact on the provincial fiscus and its ability to fund economic development initiatives in the province.
This information was revealed by the Gauteng MEC for Economic Development, Lebogang Maile, in a reply to the Democratic Alliance (DA) Gauteng’s questions tabled in the Gauteng Provincial Legislature (GPL).
See reply here.
According to MEC Maile, gambling revenue forms a vital component of the province’s revenue base, contributing to public service delivery and socio-economic programmes through taxes, levies, and licence fees collected from operators.
Furthermore, the MEC Maile has admitted that this loss of revenue has negatively impacted the province’s capacity to finance key public service delivery projects.
Despite this admission, he has indicated that the Gauteng Gambling Board (GGB) does not issue separate online gambling betting to add to the existing licences. This is a weak excuse, as both the Western Cape and Mpumalanga have implemented regulatory frameworks for online betting platforms. The benefits of this are evident, as the Western Cape accounted 31% for the highest amount of Gross Gambling Revenue, followed by Mpumalanga with 30%.
If Premier Lesufi is serious about increasing the province’s own generated revenue, he will work on a similar regulatory framework. Furthermore, he should address the issues at the GGB, particularly instances where money is being wasted on trying to overturn claims by former employees.
A DA-led Gauteng Provincial Government would immediately align the online betting platforms to the frameworks of the Western Cape and Mpumalanga. It would recognise that many people accessing their platforms are residents from Gauteng. We would give them opportunities to access Gauteng-based platforms instead. This would mean more money in the public purse to improve service delivery in the province. Safeguards can be implemented to limit any risk of increasing gambling addiction. Such moves would result in growing investment and create employment opportunities. Yes, this can be done by replicating best practices from the Western Cape and Mpumalanga.