Gauteng Premier Panyaza Lesufi’s government has once again put the cart before the horse and has had their appeal regarding the horse racing levy struck from the roll. This decision will cost taxpayers R600 million. This is money that the Gauteng Provincial Government (GPG) can ill afford to pay, as it is already struggling to provide basic services to the province’s residents.
In 2019, the Gauteng Department of Economic Development changed the regulations on how horse racing levies would be split. The horse racing company affected by this regulation was Phumelela Gaming and Leisure. According to media reports, the regulatory change meant that the millions of rands that would have been split with the operator flowed straight through the Gauteng Gambling Board (GGB) into the provincial revenue fund. The operators at the time received no part of the levy.
Gauteng charges a 6% levy on the value of horse racing bets placed with a licensed bookmaker. This is meant to finance the cost of organising race meetings, maintaining racing infrastructure and supporting the sector’s development.
Before April 2019, 3% of the levy was paid to Phumelela Gaming and Leisure. In 2024, the Gauteng High Court struck down the amendment to the horse racing regulations. The court deemed that the province had acted irrationally and unfairly.
The Democratic Alliance (DA) Gauteng demands that the MEC for Economic Development, Vuyiswa Ramokgopa, immediately implement the court ruling. It is unacceptable that a new regulation was enforced without informing the horse racing industry about its implications.
A DA Gauteng-led government would immediately abide by the court order. We would ensure that where laws are put in place, the residents of this province are the ones who benefit.