The Goods and Services Tax Council of India, which includes the country’s leading federal and state ministers, has approved an indirect 28% tax on online gaming, casinos and horse racing.
Online gaming is separated by commas from casinos for the reason that fantasy sports are very popular in India. The applications dedicated to him are positioned as regular games and at the same time allow you to bet on real money.
The developers of such applications reject the accusations that such a business is not esports, but gambling. Their key argument is that in fantasy sports, winning is determined not by luck, but by the user’s skills.
Indian ministers see it as their first priority to remove this loophole. They believe that there should be no difference for the law whether it is a game of skill or a game of chance.
At the same time, fantasy sports, according to TechCrunch, is one of the fastest growing IT businesses in India. The niche-leading startup Dream Sport alone is estimated at $8 billion.
“The introduction of the tax will destroy the entire Indian gaming industry and lead to the loss of jobs. The only ones who will benefit from this will be anti—national illegal offshore platforms,” said Roland Landers, executive director of the trade organization All India Gaming Federation, which just represents many fantasy sports applications.