Tax Hike to 40% Puts India’s Casino Industry at Risk

^{Pictured: Jaydev Mody, Chairman of Delta Corp}

The hastily adopted decision by Indian authorities to ban online gambling nationwide has triggered widespread problems across the gaming industry and related sectors. The government, however, did not stop there — it has already prepared legislation to raise the tax rate for land-based casinos* from 28% to 40%, reported Gambling Insider. Experts warn this move could effectively paralyze the sector.

Blow to Sports

One of the first to feel the devastating impact of the real-money online gaming ban was cricket, hugely popular among Indians. Since 2023, fantasy sports platform Dream11 had been a sponsor of both the men’s and women’s national teams, as well as a partner of the Indian Premier League. Late last month, the company was forced to terminate its partnerships.

As a result of the government’s rushed decision, Dream11’s $43.6 million deal with the Board of Control for Cricket in India was cancelled, depriving the nation’s most beloved sport of major financial inflows.

Blow to Employees

Mobile Premier League (MPL), a company specializing in online games now under the ban, was forced to lay off about 60% of its Indian workforce.

Roughly 300 of the 500 employees lost their jobs overnight as a result of Prime Minister Narendra Modi’s policy. According to Reuters, the layoffs affected marketing, finance, development, and legal support divisions. MPL co-founder and CEO Sai Srinivas stressed that the decision was taken “with a heavy heart.”

Blow to Viability

On September 3, the Goods and Services Tax Council announced a revision of the taxation system, under which the rate for land-based casino operations will rise from 28% to 40%.

In light of these government plans, Delta Corp — which had been financing the construction of a casino resort in Goa — suspended further investment in the project. The company had been prepared to invest up to $284 million in the facility, expected to create up to 10,000 jobs. Once again, government policy disrupted business plans.

“The contemplated 40% tax will make the entire sector unviable,” said Delta Corp Chairman Jaydev Mody.

Gambling Park earlier reported on Flutter’s exit from India following the passage of the new bill.

* Land-based casinos are permitted in the Indian states of Goa and Sikkim, as well as in the union territory of Daman and Diu. Gambling venues may only be opened in five-star hotels or aboard ships.