A Bill that will tax gambling on the Internet has been released for public comment by finance minister Trevor Manuel. The Interactive Gambling Tax Bill will introduce a special tax on all interactive gambling activities.
Operators with an interactive gambling site in SA will be liable for this tax, which is provided for in the National Gambling Amendment Bill. Operators will be taxed at a rate of 6% on their gross gambling revenue.
"The success of the Bill will depend on whether local operators will find the rate of 6% competitive with international operators, who are also operating within a regulated environment," says Derek Auiret, chief executive of the Casino Association of SA.
Interactive gambling was legalised with the passing of the National Gambling Amendment Bill in May, after the initial National Gambling Act did not provide for interactive gambling in SA. The Bill was drawn up as part of government plans to tighten regulations on interactive gambling and reduce offshore control.
Auiret emphasises the role of government regulation in the industry, saying: "It is the prerogative of government to set taxes."
The Interactive Gambling Tax Bill will be tabled in Parliament during the first half of 2009 and will be closed for public comment on 1 March 2009.
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