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South Africa – Gauteng to up casino tax for larger operations

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Emperors Palace

Gauteng’s larger casinos are to be taxed at a higher rate as Premier David Makhura’s provincial government looks to improve its revenue collection.

Gaming tax has been set at nine per cent for the last decade but now with the government looking to boost its revenue collection from R5bn to R5.6bn by the end of 2019, a tiered tax system is being considered.

It means larger casinos in the province such as Carnival, Emerald, Emperors Palace, Gold Reef, Morula, Monte Casino and Silver Star could all pay more than their smaller rivals.

Gauteng MEC for Finance and e-Government Barbara Creecy said: “Our suggestion is that there should be a differentiation of rates between big and smaller casino operators. At the moment all of them were paying a flat rate of nine per cent. If we differentiate, it will mean that the big casinos were expected to pay a bigger amount while the fees for the small players will go down. We are in the process of reviewing casino licences in the province. The Department of Economic Development issued new casino gambling regulations for public comment in January 2016. We have received substantive comments from our stakeholders, which the department is factoring into the draft that will present for consideration to the standing committee on sub-ordinate legislation.”

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