Major Malta-based companies Bet365 and Betway are no longer operating in the once-lucrative Indian market following the introduction of a punitive tax that has left the country’s iGaming sector in tatters.
On 1st October, a new 28 per cent Goods and Services Tax (GST) was implemented on all bets placed online – win or lose – replacing an earlier regime whereby an 18 per cent tax was levied on gross gaming revenue.
The new tax was recommended by India’s GST Council in July.
Bet365 announced its exit in August, while Betway informed users of its decision to “regrettably elect to cease trading” on 1st October, the day the new tax came into effect. In a notice to investors, Super Group (SGHC) Ltd, the parent company of Betway, said the “newly effective tax rules make the Indian market no longer commercially viable.”
Online gambling is largely a grey area in India, and the All India Gaming Federation (AIGF), the representative body for skill games like esports, has previously written to Prime Minister Narendra Modi to warn of the dangers of off-shore betting platforms, singling out Bet365 among others.
However, the AIGF has also opposed the introduction of the punitive tax rate, describing it as “unconstitutional” and “irrational”.
Maltese operators are not the only ones feeling the crunch – the new tax has also cut short the aspirations of Indian start-ups in the sector.
The move is expected to effectively eliminate a major market for operators that had invested heavily in the country, drawn to the potential opportunities in its 1.4 billion-strong population, many of whom are increasingly connected, tech-savvy, and eager to play.
GREF is a forum for European gaming regulators, serving as a meeting place and exchanges of views between its members
The new service will handle a variety of currencies, with payments being made in over 100 countries around the globe
Olga is tasked with working closely with the company’s existing partner network, as well as landing further agreements with operators in key regulated regions