Super Group withdraws from India due to online gambling tax
The operator of Betway says the 28 per cent GST levy means the Indian market is no longer commercially viable.
India.- Super Group, the operator behind Betway, has decided to withdraw from the Indian market due to the 28 per cent GST levy on online gaming, casinos and horse racing announced in July. CEO Neal Menashe said the new rule had made the Indian market commercially unviable for the company, prompting an immediate cessation of all services.
Under the revised taxation framework, the 28 per cent tax is applied to the full face value of bets rather than GGR. For online gambling, the tax applies to the complete value of all bets placed with operators. In the case of land-based casinos, the tax is imposed on the face value of chips purchased at each venue, while in horse racing, it applies to the total value of bets placed with bookmakers and totalisators.
Shortly after announcing the new tax, the Finance Ministry and Ministry of Electronics and Information Technology (MeiTy) said it would block non-compliant platforms.
The All India Gaming Federation (AIGF) has criticised the tax rate, asserting that it could pose significant challenges for businesses and potentially drive players towards unlicensed operators. It says the move could result in substantial job losses. The Goods and Services Tax Council will reevaluate the tax in the first quarter of the next fiscal year.
See also: GST Council to review 28% GST on online gaming and casinos in 2024
