Betway Withdraws from India Following New 28% Tax

Super Group, the parent company of online gambling brands Betway and Spin, has announced that it is exiting the Indian market due to the new Goods and Services Tax (GST) that came into effect on October 1, 2023.

The new GST imposes a 28% turnover tax on all services related to online gambling, land-based casinos, and horse racing. Super Group said in a statement that this high tax rate makes the Indian market economically unfeasible for the company.

Why Betway Withdraw from the Indian Market?

"The newly effective tax rules make the Indian market no longer commercially viable for Super Group," the company said.

Super Group's decision to exit India is a blow to the country's growing online gambling industry. India has one of the largest internet user populations in the world, and the online gambling industry has been growing rapidly in recent years.

Finance Minister Nirmala Sitharaman clarified that the GST Council did not intend to single out any specific industry by imposing 28% GST on online gaming and casinos. She said that the decisions were taken after thorough discussions with all the members, including those from states like Goa and Sikkim where casinos are a major source of tourism revenue.

Impact of the New GST Tax on the Indian Gaming Industry

However, the new GST tax is likely to have a chilling effect on the industry. Other online gambling companies may follow Super Group's lead and exit the Indian market, or they may be forced to raise their prices to cover the high tax costs.

The new GST tax has also been criticized by industry experts and analysts. They argue that the high tax rate will discourage investment in the industry and will lead to a decrease in tax revenue for the government.

According to Roland Landers, the CEO of the All India Gaming Federation, the decision disregards the established legal principles of over six decades and equates online skill gaming with gambling activities.

“We believe this decision by the GST Council is unconstitutional, irrational, and egregious. This decision will wipe out the entire Indian gaming industry and lead to lakhs of job losses and the only people benefitting from this will be anti-national illegal offshore platforms,” Landers said in a statement.

The long-term effects of the new GST tax on the Indian online gambling industry are still unclear. Nevertheless, the high tax rate has already caused a negative impact on the industry, as evidenced by Super Group’s decision to exit the market. Other international operators may be worried about the new tax rate, and it could discourage new companies from entering the market. Existing operators may also have to reconsider their operations in India. The full economic impact of the new tax on investments and jobs in the Indian online gambling sector is not yet known.

However, there are still some great alternatives to Betway who are continuing to operate in India, such as Parimatch. Parimatch is a leading online gaming company that offers a wide range of betting and casino games. The company is licensed and regulated by the Curacao eGaming Authority, and it has a strong reputation for reliability and security. There are other operators that you can explore and compare. These operators have different features, bonuses, games, and payment methods that may suit your preferences and needs.