India’s revenue secretary, Sanjay Malhotra, has stated that India’s decision to impose a 28% tax on funds collected by online gaming companies will not need any further consultation and an early review is unlikely. The announcement of the decision has caused dismay in the $1.5 billion online gaming industry, with shares of casino operator Delta Corp and other online gaming companies experiencing significant declines in trading. Industry representatives have expressed concerns that the tax could impact their earnings and lead to a loss of customers, jobs, and investors. Companies and investors plan to approach the government and the prime minister’s office to request a reconsideration of the decision. However, Malhotra has stated that there is no chance of an early review. The tax has also been criticized for potentially driving consumers towards offshore and illegal gaming platforms that do not pay taxes. Additionally, thousands of job cuts are expected, and many Indian gaming startups are facing increased costs and reduced user bases. Industry experts estimate that 95% of real-money gaming startups in India may close in response to the tax. The decision has also prompted some individuals to reconsider their investments in fantasy games. The tax is seen as a blow to the legitimate online gaming industry, while offshore and illegal platforms may benefit from increased business. The amendments required to enable the tax will be brought in the monsoon session of parliament later this month.
