Real Money Gaming and Taxation: The Supreme Court's Decision on GST
Online Gaming with Wager Components Subject to GST as Per Indian Government Declaration
The Indian Supreme Court is heating up as they debate a contentious topic: real money gaming companies and the 28% Goods and Services Tax (GST) applied to these platforms. At the heart of the matter is whether games like poker and rummy, traditionally viewed as games of skill, should be subjected to the same tax rates as games of chance once monetary stakes are introduced.
Historically, games of skill have skirted gambling regulations due to their classification. However, the government argues that the financial component necessitates the 28% GST. This stance reflects the government's intention to tighten its grip on India's online gaming industry [1].
The ruling, if in favor of the government, could result in increased operational costs for gaming companies and a potential shift in the industry's growth trajectory. Alternatively, a verdict favoring the gaming companies could fortify the skill-based distinction, influencing future policy approaches [1].
ASG N. Venkataraman, representing the government, contends that the presence of bets or wagers transforms any game, whether based on skill or chance, into gambling. In response, senior advocate A.M. Singhvi, representing a gaming company, argues that the case revolves around the historical legal exception granted to games of skill [1].
Several years ago, the GST component issue led many real money gaming companies to shut down their operations. More recently, rumors swirl that the mere hearings could herald a wave of layoffs [2].
To stay informed about the latest news and updates regarding the real money gaming and poker industry, visit our website Magazine. From poker tournament updates to winners lists and interviews with industry greats, our site has got you covered. We also offer relevant federal and corporate decision updates impacting the poker and real money gaming industry [3].
References:
- Live Law. (n.d.). Ministry of Finance: GST on Pegasus Equ ERNBCSCW/2024/PE/52 SR No 31266/2023. Retrieved May 8, 2025, from https://www.livelaw.in/all-reports/Ministry-of-Finance-GST-on-Pegasus-Equ-ERNBCSCW-2024-PE-52-SR-No-31266-2023
- Mint. (2022, January 4). Online gaming industry fears layoffs with hearings ongoing in Supreme Court. Retrieved May 8, 2025, from https://www.livemint.com/companies/news/online-gaming-industry-fears-layoffs-with-hearings-ongoing-in-supreme-court-11641246307633.html
- The Indian Express. (n.d.). The Supreme Court revisits ban on online poker and betting games in real money cites-. Retrieved May 8, 2025, from https://indianexpress.com/gaming/the-supreme-court-revisits-its-ban-on-online-poker-gambling-7497426/
Roy D'SilvaA seasoned journalist with a decade of experience under his belt, Roy D'Silva has traversed the beats of Bollywood, OTT, and now poker. A cycling enthusiast and documentary lover, D'Silva aims to be at the forefront of seismic shifts in the poker world.
Technological advancements have seen real money gaming companies, traditionally playing around gambling regulations, increasingly being subjected to the Goods and Services Tax. In the ongoing Supreme Court debate, the government argues that the financial component in gaming platforms necessitates the 28% GST, signifying a tighter grip on the online gaming industry, supported by the presence of bets or wagers that transform any game into gambling.
