Daily Asia Gaming eBrief: Tax measures hampering online gaming growth in India

Tuesday 16th of July 2024

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Good Morning. India's online gaming sector has rampant potential for growth, but current taxation measures are limiting the options, according to a report. Retroactive taxation is causing even established companies to up their operating costs and layoff employees, limiting profitability and reducing the possibilities for operators in the space. Meanwhile, in Macau, concerns over increased pressure by authorities appear to be overdone, as whales continue to play in the SAR and their movement of funds appears unperturbed.

What you need to know

The Indian online gaming industry is expected to generate some INR140 billion ($1.68 billion) in taxes in the next financial year.
Robust gaming demand in Macau justifies the view that concerns over a crackdown on illegal money flows are overdone: Citigroup.

On the radar

Philippines Senate issues arrest orders for POGO Mayor Alice Guo.
Okada Manila's 2Q24 GGR drops 21.8% due to VIP and slot decline.
Hong Kong Jockey Club’s turnover down 4.5% to $17.3B in 2023/24 Season.
The Star shuts down all EGMs and ETGs due to ‘system issues’.
SkyCity Entertainment Group welcomes new CEO as strategic overhaul begins.
Seized POGO hubs could be used by the Philippine government.

AGB Intelligence

INDIA

Regulatory changes hamper online growth: Report

India's online gaming sector holds massive potential for growth, but experts are worried that the current tax structure is prohibiting companies from reaching their full potential, and limiting market entrants. The current GST rate of 28 percent is stifling FDI, but the industry is still looking to add some 150,000 jobs next year. But retrospective taxing is also weighing down already established companies, with increased costs leading to more layoffs in the sector.

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