SBC News Voice of the Sports Betting Industry
Online gambling providers in India were once again left discouraged after the 54th Goods and Services Tax (GST) Council concluded with no changes made to the 28% GST levy.
The tax affects all player deposits made via online gambling, casino and horse racing. Before an increase was introduced by the government in October 2023, gambling businesses were required to pay only 18% GST tax.
An in-depth review of the market since the changes were implemented can be viewed here.
The industry has voiced its discontent on multiple occasions, citing mass layoffs and unjust financial repercussions as a result of the tax hike.
One of the proposals to mitigate the negative impact on corporate health was to apply the GST levy to gross gambling revenue instead of player deposits. This however proved to be unsuccessful.
In order to compare the current tax regime with the economic landscape in previous years, Ernst & Young (EY) and the US-India Strategic Partnership Forum (USISPF) published a report showcasing that India’s gambling sector attracted over $2.6bn in investments in 2019.
The analysis then adds that there has been no capital raised from domestic or global investors since the 28% GST tax was signed into force almost a year ago.
At the latest GST Council meeting however, Nirmala Sitharaman, Minister of Corporate Affairs, justified the levy’s adoption with the apparent increase in revenue from online gambling, which she said jumped by 412% to Rs 6,909 Crore (£628m) in the six months after the new tax threshold was introduced (November-April).
