Group of Ministers recommends raising GST on online gaming to 28 percent

A Group of Ministers (GoM) in India unanimously decided to recommend raising the goods and services tax (GST) on online gaming, casinos and race courses from the existing 18 percent to 28 percent, according to news reports dated May 18¹. The recommendation was reported by Forbes India, which said the GoM reached the decision unanimously¹.

The change, if adopted, would apply across three categories of gambling and gaming activity: online gaming, casinos and race courses¹. The report did not state which states or ministers sit on the GoM, when the recommendation was made formally, or whether it has been accepted by the GST Council. Those details have not been reported¹.

The recommendation comes against the backdrop of a large and fast-growing Indian online fantasy sports market. A report by Deloitte and the Federation of Indian Fantasy Sports (FIFS) put the online fantasy sports market size at ₹34,600 crore in FY21 and projected growth to ₹165,000 crore by FY25¹. Dream Sports, the parent of fantasy platform Dream11, closed FY21 with revenue of ₹2,706 crore and a profit after tax of ₹329 crore, up from ₹2,120 crore and ₹181 crore respectively the previous year¹. Dream11 claims more than 150 million users, ahead of Games 24x7 and MPL in reported user numbers¹.

• Dream11: more than 150 million users¹
• Games 24x7: 100 million registered users¹
• MPL (Mobile Premier League): 90 million¹

The legal status of fantasy sports in India rests on a Supreme Court ruling. In August 2021, the Supreme Court upheld Dream11's fantasy sports format as a "game of skill," by its order dated July 30, 2021, and dismissed an appeal against a decision of the Rajasthan High Court¹. Separately, some states including Assam, Sikkim, Odisha and Andhra Pradesh have banned fantasy sports¹.

What it means for players

GST is a tax collected from operators, not a direct charge on a player's winnings, so the immediate effect on players depends on whether operators pass the higher rate on through entry fees, commissions or prize structures. The report does not say whether operators would absorb the increase or pass it to users¹. For players in India, the practical questions are whether contest entry prices rise, whether prize pools shrink, and whether platforms change their formats. None of that has been reported¹.

The recommendation covers online gaming, casinos and race courses together, so players in all three segments would be affected if it is adopted¹. Fantasy sports operators already require users to self-certify they are above 18 when joining a contest, and to complete KYC with government-issued IDs before withdrawing winnings¹. Dream11 also describes responsible play limits, with notifications asking users to stop after a set level of losses¹. The average transaction on Dream11 is ₹37, and over 99 percent of its users have never won or lost more than ₹10,000 in their lifetime on the platform¹.

What happens next

The GoM has recommended the increase; the report does not state when or whether the GST Council will consider it, or when any change would take effect¹. No timeline for implementation has been reported¹.

For background on how operator taxes reach players, see Betting Duty, GST and Casino Tax: How Operator Taxes Reach Players. For the wider legal picture, see Can I Gamble in India? and Can I Play at Online Casinos in India?. For winnings treatment across the region, see Tax on Gambling Winnings in Asia: A Guide for Players, Visitors and Expats.