India’s gaming landscape is undergoing a seismic shift, with a population exceeding 1.3 billion eager to experience the thrill of live casino games. However, recent changes in taxation and regulatory environment have reshaped the industry, challenging operators to adapt and innovate.
This article explores the evolution of live gaming in India and its current state, giving you all the necessary information if you’re thinking about tapping into this market.
Understanding the Tax Structure
The Goods and Services Tax (GST) Council recently decided to impose a flat 28% turnover tax for online gambling, casino, and horse race betting which proved to be a pivotal development. Unlike the traditional gross gaming revenue (GGR) model, this new tax is applied to the full-face value of bets, creating a turnover-based tax structure.
To put things simply, for every Rs100 spent by a consumer, the operator will pay Rs28 in tax. This change demands a thorough reevaluation of financial strategies for operators.
The new tax rate is part of a broader set of regulatory changes in India’s online gambling market. Earlier in the year, new regulations were introduced to ensure compliance with existing laws and establish self-regulatory bodies.
Implications for Live Casino Operators
Live casino operators in India are directly affected by this tax, as it is applicable to the total value of all bets placed on their platform.
This shift underscores the need for data-driven decision-making while understanding player behaviour, preferences, and market dynamics is crucial for making informed choices in this evolving landscape. The risk of players turning to unlicensed operators due to increased taxes highlights the importance of offering a competitive and attractive live casino experience. Operators must focus on innovation and customer-centric strategies to stay ahead.
Furthermore, the All India Gaming Federation (AIGF) has also expressed concerns about this tax rate, emphasising potential challenges for businesses and job losses.
Looking to the Future
As India’s iGaming landscape evolves rapidly, it’s essential for live casino operators to stay ahead of the curve. This dynamic market presents both challenges and opportunities. Operators need to embrace innovation, invest in technology, and focus on enhancing the player experience to succeed in this competitive environment.
While these changes present challenges, they also offer tremendous opportunities in a market with massive untapped potential. Operators who navigate these changes effectively, adapt to the evolving regulatory environment, and focus on data-driven decision-making will be well-positioned for success in India’s dynamic iGaming market.
EEZE is your trusted partner in navigating this dynamic industry. Find us at SiGMA, Booth Number 4020!