National Gambling Board (NGB) has issued a formal notice clarifying that Remote Gambling Servers (RGS) are not permitted under the country’s current legal framework.
According to the NGB, RGS systems, which facilitate interactive online play, do not qualify as approved gambling infrastructure. Section 11 of the Act prohibits any person from offering or engaging in interactive gambling unless legally authorised. As a result, provincial authorities have been instructed to stop approving or allowing the continued use of Remote Gambling Servers in licensed operations.
The clarification follows a directive from the National Regulator for Compulsory Specifications (NRCS) which confirmed that the South African national standard SANS 1718-4:2018 applies exclusively to Wagering and Record Keeping Systems (WRS).
NRCS has announced that previously issued certificates for RGS have either expired or will cease to be valid upon expiration, and no new certificates will be issued. Certification processes will now strictly comply with the National Gambling Act and applicable mandatory technical standards.
The regulatory notice coincided with the final day of public consultation on National Treasury’s proposal to introduce a 20% tax on online and interactive gambling revenue. The comment period, initially scheduled to close on January 30, was extended to February 27, shortly after Finance Minister Enoch Godongwana delivered the 2026 Budget Speech.
The proposed levy would apply to gross gambling revenue from online betting and interactive gaming, with Treasury estimating it could generate approximately R10 billion annually. While officials argue the measure aims to address both fiscal needs and social harm concerns, industry stakeholders have raised objections, warning that higher taxation could increase operational costs and impact market growth.
With the consultation period now closed, the industry awaits Treasury’s response and further clarity on whether the proposed online gambling tax will move forward.
