India has implemented a landmark 40 percent Goods and Services Tax (GST) on casinos and lotteries, effective from 22 September 2025. This change follows decisions by the GST Council to rationalise rates and create greater clarity in taxation for the gaming and betting sectors. Casino entry fees and chip sales will now attract the new 40 percent tax, significantly higher than the previous 28 percent rate. Operators and players alike will face a higher tax burden, prompting concern from industry stakeholders.
Lotteries will also see an increased effective tax incidence due to a revised deemed valuation formula, changing from 100/128 to 100/140. This raises the taxable base for lottery supplies, affecting distributors, agents, and state revenues. Kerala, a state heavily reliant on lottery income for welfare funding, is expected to feel the most significant impact. Local operators have already engaged with state authorities to discuss potential implications on margins and public programs.
Delta Corp, India’s largest listed casino operator, has suspended its ₹2,500 crore integrated resort project in Goa amid uncertainty over the new tax. The project, planned for Dhargal in North Goa, was set to include hotels, a convention centre, a shopping mall, a water park, and an electronic casino, creating an estimated 10,000 jobs. Delta Corp chairman Jaydev Mody warned that the 40 percent GST would make the sector unviable, potentially reducing investment and tourism revenue.
The GST Council has consolidated the previous four-rate structure into two slabs of 5 and 18 percent, introducing a new 40 percent bracket exclusively for sin goods, including casinos, lotteries, betting, and online gaming. While the reforms aim to standardise and simplify taxation, industry representatives caution that the steep rates could lower participation, reduce margins, and dampen investment prospects. This marks one of the most significant indirect tax reforms in India’s gaming industry since the introduction of GST in 2017.
