Online gaming takes a hit as India imposes a significant 28% tax
India has announced a significant tax increase on online gaming companies, which has been met with strong opposition from the industry. The Goods and Services Tax Council has imposed a 28% indirect tax on online gaming, casinos, and horse racing, eliminating the distinction between “game of skill” and “game of chance.” This move has raised concerns about job losses and the potential rise of illegal offshore platforms. Online gaming is a rapidly growing industry in India, with startups like Dream Sports seeing massive success. The government has also directed gaming firms to establish self-regulatory bodies and work closely with the IT Ministry to determine permissible games. The decision on taxation was made to address the moral dilemma of prioritizing online gaming over essential goods.