India Awaits Gambling Tax Decision In Its Most Important Industry Battle

It is crunch time in India as iGaming and lottery firms await a crucial decision by the Supreme Court on a 2.5 trillion INR gambling tax bill.

There are just under ten days to go before we hear the final decision on whether the 28% tax rule applied to betting in India will be enforced on games of skill.

On 25 July 2025, the Supreme Court will make a ruling on whether websites offering games such as poker, rummy and fantasy sports will need to pay the 28% Goods and Services Tax (GST).

When the government decided to place a 28% tax on the value of all bets, it was a major blow to one of the world’s fastest-growing iGaming industries.

However, many online gambling firms in India did not file to pay GST taxes on certain games. The argument is over the way the tax collector and the gaming companies interpret CGST Rule 31A.

The result has meant that the case has now found its way to India’s Supreme Court, where effectively the future of how the country’s iGaming industry will unfold.

It is a defining moment at this juncture for an industry that the government has so far struggles to agree on regulations, and to be quite frank, a struggle to regulate as a whole.

At the moment, the court judgement on whether the gaming companies who feel they are exempt from the 28% gambling tax has a massive ₹2.5 lakh crore at stake. For those not familiar with the terminology, we are talking about 2.5 trillion INR at stake, which is 30 billion USD or 28 billion EUR.

My Source: To ensure we are all on the same page, I’ve used the Business Standard news report Levy of 28% GST on gaming flawed and United News of India (news stroy below) as my sources for the facts stated and my opinion below in this Casinoplusbonus gambling news piece.

A Never-Ending Saga Says Government Offcial

The reason the case regarding tax has made its way to the Supreme Court is due to the huge number of participants who have signed a petition against the 28% taxation. Supreme Court members Justices R. Mahadevan and JB Pardiwala said that they were shocked at the number of petitioners.

One of them has been quoted by the United News of India as saying, “This is a long list of petitioners, this will be a never-ending saga.”

Casinoplusbonus Opinion

We’ve never made it a secret here on Casinoplusbonus that these taxes a ludicrous. We are not ones to tell governments how to run their countries, but a 28% tax? It is designed to kill the industry rather than let it flourish, which is maybe the idea.

On the other side of the coin, I am sure that those who are anti-gambling feel the tax is not enough. Obviously, our point of view is always going to be biased as we work in and actively promote the online gambling industry.

As a result, I’ll extend an olive branch here. I think it is fair to meet halfway. Allow companies that offer games of skill a reduced tax rate, while taxing games of chance at 28% (although it pains me to write this about skill games as an online slot enthusiast). Therefore, rummy, poker, and fantasy sports have low tax rates, while games like slots, blackjack, baccarat, and game shows are taxed at 28%.

Do I think These Companies Will Become tax-exempt?

Do I really think the government is going to make a ruling that will literally forfeit 2.5 trillion INR? Not really, no, but I do think there will be some kind of reduction.

Another point the fact that I’d like to think the government of India is evolving to become a modern and forward-thinking one, but the old guard still has too firm a grip on power, and it is this very same old guard that is behind the ludicrous 28% gambling tax in the first place.

Although there is a silver lining, and that is the number of petitions. The Supreme Court may view this issue as one that will never be resolved unless there is at least a tax reduction, which is likely the most probable outcome. At least, that’s what I feel after the comments made by one of the Supreme Court justices.

Therefore, my final answer is – I would be very surprised if India rules for gaming companies that supply games of skill as exempt from the GST tax.