EMERGING MARKETS
the face value of each bet from 2017 has the industry worried ,” Singhania says .
“ This has thrown the industry into an existential crisis .”
Gourav Pilania , an igaming consultant based in India , adds that from his experience , the 28 % GST has resulted in a “ dip in market growth ” alongside some consolidation in the industry .
“ Gaming companies are revising and updating their business models to minimise the impact of the tax and continue on the path of generating growth and return on investment ,” he says .
It ’ s a smart move not to stay and break the rules
DEEPANSHUL RANA , IGAMING CONSULTANT
Adaptation or evolution ?
Igaming expert Deepanshul Rana , however , observes that companies have adapted to the tax by creating new player incentives . “ Operators have started to give free bonuses to users for the amount that goes to pay the tax . They ’ re also trying to adjust in the same ecosystem as the new rules as they want to maintain their ROI in the long run .”
In October 2023 , Betway brand owner Super Group decided to pull out of the market following the introduction of the GST . Yet , Rana doesn ’ t believe this is as serious a blow as it seems for the industry .
“ Obviously , under the new rules , Betway can ’ t operate legally unless they start paying taxes . So , the move could be just a temporary pullout from the market to see how the new ecosystem is going to work ,” he says .
“ It ’ s a smart move not to stay and break the rules , that would not sit well with the authorities . A pause of operations to see how regulation shakes up could be the strategy here .”
Aryaman Raman , Mediarun
Digital CEO , likens navigating the Indian gaming market to dealing with tobacco or alcohol sales .
“ Despite increasing taxes , the allure for consumers remains , driven more by the potential benefits than the costs ,” says the CEO of the Indian marketfocused affiliate .
Yet , while those in the industry are aware of the GST and the tax deduction at source ( TDS ) of 30 % of all winnings from players , Raman believes that the players themselves are less clued up .
“ A study done by Lumikai in partnership with Google showed that only 11 % of players understand
Retrospective demand of GST on the face value of each bet from 2017 has thrown the industry into an existential crisis
VIDUSHPAT SINGHANIA , MANAGING PARTNER , KRIDA LEGAL
either tax , while 43 % are familiar with both , indicating a gap in knowledge ,” he says .
The disconnect
Raman has seen a drop in players in the market but predicts this is just for the short to medium term . “ At the moment players are flocking to exchange sites and illegal sites where the taxes are not imposed , but they will come back to legal operators because the government is strictly cracking down on the illegal sites .”
However , he plays down concerns that the taxes have hampered his company ’ s
40 • iGBAFFILIATE . COM