India has decided to review the gambling tax hike policy launched in October 2023, reflecting significant changes in the industry since then. Finance Minister Nirmala Sitharaman stated that in 2024, online gambling revenue grew by 412%, reaching 69.09 billion rupees ($823 million). Physical casino revenues also increased by 30%, totaling 12.14 billion rupees ($25.5 million).
Despite the tax increase, concerns about taxation persist. Stakeholders have warned that high tax rates could harm the industry, and a recent report by Ernst & Young and the US-India Strategic Partnership Forum indicates that, although the Indian gaming industry has attracted $2.6 billion in foreign direct investment since 2019, no new capital has been raised since the tax reform.
Dr. Aruna Sharma, an economist and former Indian government official, previously commented: "Heavy taxation is likely to be passed on to the players."
Rajat Bose, partner, advocate, and lawyer at Shardul Amarchand Mangaldas & Co., stated: "The online gaming industry eagerly awaits the Goods and Services Tax Council meeting, hoping the council will address their concerns."
The Goods and Services Tax (GST) Council, composed of Sitharaman and representatives from various Indian states and territories, has the authority to set tax rates and administrative procedures. In January 2023, India introduced new regulations for online gambling, including independent self-regulatory bodies, to better manage the industry.
