Gambling tax in India is set to increase, throwing a spanner in the works for Delta Crop’s planned casino project in Goa. The gambling company already successfully operates several licensed casinos in Goa and had planned another project: an aspiring “integrated resort-cum-casino township” to be built on 36 hectares in Dhargal, close to Manohar International Airport. However, due to the impending tax increase, this ambitious project must be put on hold for the time being.
The impact of these tax measures remains to be seen. For land-based casino operators, this news could mean having to cease operations in the worst-case scenario. While the industry is still digesting the bad news, players are already starting to take action. For several years now, more and more players have been turning to online gambling globally. The impact on local gambling operators could also drive Indian gamblers to look for better alternatives offshore.
According to casino expert Wilna van Wyk of CasinoBeats, Canada is one of the leading countries that provides its players with trustworthy and secure casino experiences. CasinoBeats reviews casino sites for Canadians to ensure that players can benefit from the best game offers and fast withdrawals. While Canada, the US, Europe, and the UK are busy working on creating a safer and better gambling environment for their customers and continue to rise in the gambling market, India now faces the risk of falling behind.
The Delta Crop’s project was a sign that India is also rising in the global gambling business. Originally, investments of 2,000–2,500 crore rupees (equivalent to approximately £188–235 million) were planned to realise the resort project. However, following the announcement that the Indian government is planning on introducing a 40% goods and services tax on casinos, compared to the current rate of 28%. Delta Corp has publicly announced its withdrawal. Until the exact details of the tax increase are known, the project will be put on hold for the time being.
In an interview with the Times of India, Delta Corp Chairman Jaydev Mody said: “The 40% GST contemplated will make the entire sector unviable.” He expressed his concerns not only for the industry but also for the people who are directly affected by the impact on the industry: the project was supposed to launch in 2027 and create thousands of jobs for locals, who are now facing the risk of disappearing. In addition, the impact would hurt visitor numbers in the state, which in turn would reduce tax revenues. According to Chairman Jaydev Mody, this would render all investment spending by the industry obsolete.
The reform is part of a broader tax system that introduces new tax rates of 5%, 18%, and 40%. While the auto- and insurance industries are expected to benefit, other sectors such as coal, luxury goods, and casinos will face emerging challenges. Delta Corp's share price has already begun to decline on the financial markets. The Economic Times criticises India's GST reform for the new tax rates, claiming that not all are winners in India's GST 2.0 regime. Although these are touted as a “growth catalyst” and “reward for investors,” they in fact pose serious threats to several sectors. The Indian beverage manufacturer Varun Beverages fell 1.5% on the stock market. The automotive sector also recorded a decline of 1%. However, Delta Corp has been hit hardest so far, falling by 7%. According to the Economic Times, the 40% tax rate on casinos relieves the burden on other sectors, but for the gambling industry, it means higher taxation by the state.
However, changes in the gambling sector are not limited to India. The gambling market is growing worldwide, which is attracting the attention of investors. According to analyses by Grand View Research, the global online gambling market is growing at a CAGR of 11.9% and is expected to nearly double by 2030. With the increasing demand for online entertainment, players are turning more and more to offers that are not necessarily limited to their home country, but are trying their luck with renowned offshore providers. For Indian casino operators, the end of September will reveal whether the government will stick to the 40% tax rate and how this change will further affect the gambling business.