On May 27, the Supreme Court of India ruled that a 28% Goods and Services Tax (GST), akin to VAT, on iGaming operators is constitutional. This ruling applies retroactively from 2017 until October 1, 2023, dismissing objections from industry representatives regarding tax reassessments.
The decision pertains to the case involving the Directorate General of Goods and Services Tax Intelligence (DGGI) against iGaming operator Gameskraft Technologies, alongside related claims from Delta Corp and industry associations including the All India Gaming Federation, E-Gaming Federation, and the Federation of Indian Fantasy Sports. The total amount in disputed tax reassessments for the industry is estimated at $26.1 billion.
The panel of judges determined that the tax applies to all real-money bets on events with uncertain outcomes, regardless of whether the product is skill-based or chance-based. GST is levied on the total amount of bets, not just the operator's commission; for instance, on a $1 deposit, the tax increases from $0.02 to $0.29.
Additionally, the court reinstated tax claims against Gameskraft amounting to $2.19 billion, overturning a previous 2023 ruling by the Karnataka High Court that had annulled these claims. This decision comes amid an effective ban on real-money gaming in India under the PROG Act, which will take effect in May 2026.