The online gaming industry has already taken a substantial hit after the Online Gaming Bill was passed last month, cracking down on real money games
The Goods and Services Tax (GST) rejig has added pressure to an industry already reeling from a law that penalizes real money online gaming.
At its 56th meeting in New Delhi on Wednesday, the GST Council approved a significant increase in taxes on casinos, race clubs, lotteries, betting, and online money gaming, raising the rate from 28% to 40%.
The new rate is part of the government’s broader reforms to simplify the indirect tax slabs, with 5% and 18% rates for general goods and services, and 40% imposed for luxury and sin goods like casinos and betting. The revised rates come into effect from September 22.
Gaming Sector Worries Deepen
The GST rate increase comes after the Indian parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, last month. The act bans real-money online gaming, including fantasy sports, and prohibits any advertising or sponsorship of such platforms.
The law also prohibits advertising of such platforms, blocks payments through banks and intermediaries, and imposes penalties of up to three years in jail or fines of ₹1 crore for operators. Advertisers face up to two years in jail or fines of 50 lakh rupees. E-sports and social games will be regulated separately, with subscriptions allowed but no wagers.
Stock Watch
Shares of Delta Corp, which is engaged in live, electronic, and online casinos, fell 7.4% on Wednesday, while Nazara Technologies dropped 2.4%, on track for a fourth consecutive session of decline.
Retail sentiment for Delta remained ‘bearish’ on Stocktwits, with the shares dropping nearly 20% year-to-date.
Sentiment for Nazara remained ‘bearish’ as well on the platform. While the stock has risen over 10% YTD, a significant portion of the gains were wiped out in the past month since the introduction of the online gaming bill. Nazara shares fell 16% in a month.
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