Bet365 and Betway Exit India Amid New 28% Online Gaming Tax

Bet365 and Betway exit Indian market due to 28% Goods and Services Tax on online gaming companies. Indian government considers relief measures and Supreme Court to hear challenges to tax demands in July 2024.

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Aqsa Younas Rana
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Bet365 and Betway Exit India Amid New 28% Online Gaming Tax

Bet365 and Betway Exit India Amid New 28% Online Gaming Tax

Two major online gambling companies, Bet365 and Betway, have exited the Indian market following the introduction of a new 28% Goods and Services Tax (GST) on online gaming companies. The latest tax legislation, which took effect on October 1, 2018, has significantly impacted the online gaming industry in India, with many companies struggling to comply with the steep tax rate.

Why this matters: The Indian government's decision to impose a 28% GST on online gaming companies has far-reaching implications for the industry's viability and may set a precedent for other countries considering similar taxation policies. This development also raises concerns about the impact of taxation on the accessibility and affordability of online gaming services for consumers.

The departure of Bet365 and Betway from the Indian market underscores the challenges faced by online gaming companies in the wake of the new tax regime. Customers are also feeling the impact, as they may face higher costs or reduced services from online gaming providers. The Indian government's decision to impose a 28% GST on the full face value of bets has raised concerns within the industry about the viability of their operations.

In response to the concerns raised by the online gaming industry, the Indian government is considering granting relief by exempting companies from paying the 28% GST on the full face value of bets for the period before October 1, 2023. This potential concession aims to provide some respite to the struggling industry, which has been grappling with the high tax burden.

The Supreme Court of India is set to hear a batch of petitions challenging the 28% GST demand notices issued to online gaming companies in July 2024. The outcome of these hearings could have significant implications for the future of the online gaming industry in India, as companies seek clarity and relief from the hefty tax burden.

The exit of Bet365 and Betway from the Indian online gambling market highlights the significant impact of the 28% GST on the industry. As the government considers potential relief measures and the Supreme Court prepares to hear challenges to the tax demands, the future of online gaming in India remains uncertain. The industry eagerly awaits the outcome of these developments, hoping for a more favorable regulatory environment that allows them to operate sustainably and meet the needs of their customers.

Key Takeaways

  • Bet365 and Betway exit Indian market due to 28% GST on online gaming.
  • New tax regime impacts industry viability and consumer affordability.
  • Indian government considers relief by exempting GST on bets before Oct 2023.
  • Supreme Court to hear petitions challenging GST demand notices in July 2024.
  • Future of online gaming in India uncertain, awaiting regulatory clarity.