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Investment in iGaming in India stalls due to GST

Investment in iGaming in India stalls due to GST

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As the row over the timing of the introduction of revisions to India’s Goods & Services Tax (GST) intensifies, the country’s Financial Express has reported that inward investment in online gaming fell from $500m to just $61m between 2021 and 2023.

Of even more concern is the impact on real-money iGaming, where investment has collapsed by a huge 87.8% over the period, from $400m in 2021 to just $2.6m last year.

Initial player engagement in iGaming in India has been high, largely due to a growing trend towards consumerism, especially in the large cities.

But a lack of clarity has led to uncertainty surrounding the timing of the enforcement of GST revisions – with iGaming taxation rising from 18% to 28% – and, as a result, international investors are adopting what Sreedhar Prasad, former Head of Internet Business at KPMG India, calls a ‘wait-and-see’ approach.

With its vast population and increasing commercial development, passion for sport and improving individual levels of affluence, India is widely thought to be one of the most exciting of potential markets. The wider iGaming industry will be hoping that the parties can quickly change gears into a ‘sooner-rather-than-later’ approach and this opportunity for all, including the government, can be progressed.