New Delhi: Online gaming revenue has increased 412% to Rs 6,909 crore between November and April, the six months since the gambling tax was introduced, according to Finance Minister Nirmala Sitharaman.
Revenue collection from land-based casinos increased 30% to Rs 1,214 crore.
Online gambling is taxed at 28% GST for the total value of deposits made by the players instead of individual bets’ value.
The Finance Minister did not elaborate on whether the industry has accepted the tax hike or if her Ministry is considering changing the tax rate. “The council heard the facts and that’s where it was left. It was more a presentation of the current situation. That was a promise that was given to review after six months. It’s been more than six months now and we have given a picture,” Sitharaman said.
Gambling industry stakeholders had raised concerns that the high tax rate could stifle the sector’s growth. A report by EY and the US-India Strategic Partnership Forum revealed that the tax hike adversely impacted the gambling business in the country. The Indian gaming sector has attracted $2.6 billion in FDI since 2019, it revealed, adding that no FDI has come since the tax hike was introduced.
The Indian government introduced new rules to regulate online gaming in January 2023. It asked the industry to set up “self-regulatory bodies” and create rules for the sector.
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