Introduction The online gaming sector in India has undergone significant growth and transformation in recent years. Initially viewed as a small segment of the media and entertainment industry, it has now become the fourth largest segment in M&E sector. Statista estimates that the number of online gamers in India is likely to reach a staggering 442 million by 2023, generating nearly $1.3 billion in revenue. Naturally, with such success, the government aims to benefit from this thriving sector through taxation. As a result, a new measure has been introduced in India, which entails the application of a 28% GST levy on the overall value of online gaming, horse racing, and casinos. This development raises concerns as it signifies that skill-based online games, which are devoid of gambling elements, are subjected to the same taxation treatment as games of chance.
Gaming rules: The maze of legality
Gaming rules: The maze of legality
Gaming rules: The maze of legality
Introduction The online gaming sector in India has undergone significant growth and transformation in recent years. Initially viewed as a small segment of the media and entertainment industry, it has now become the fourth largest segment in M&E sector. Statista estimates that the number of online gamers in India is likely to reach a staggering 442 million by 2023, generating nearly $1.3 billion in revenue. Naturally, with such success, the government aims to benefit from this thriving sector through taxation. As a result, a new measure has been introduced in India, which entails the application of a 28% GST levy on the overall value of online gaming, horse racing, and casinos. This development raises concerns as it signifies that skill-based online games, which are devoid of gambling elements, are subjected to the same taxation treatment as games of chance.