The Internet and Mobile Association of India (IAMAI) has issued an open letter urging the Central Government and the GST Council to preserve the status quo regarding Goods and Services Tax levy on online gaming. Currently, online game companies are charged 18 percent GST over their Gross Gaming Revenue (GGR). The Contest Entry Fees (CEF) are tax free. The Group of Ministers (GoM) which was formed in May last year by the Council recommended a uniform 28 percent levy for all gaming varieties. IAM AI calculates that the implementation of such a recommendation would increase effective taxation by 1,100 percent and destroy the Indian online games industry.
Online Gaming, Casinos, Lotteries and Horse Racing are Not the Same and Should be Treated Differently
Online Gaming, Casinos, Lotteries and Horse Racing are not the same and should be treated differently.
Focus Gaming News 4 days
- #India: GST Council to discuss gambling tax in September The GST Coucil has postponed its meeting to allow a group of ministers (GoM) to complete its review of #gambling taxation.
A Group of Ministers (GoM) is looking at a taxation regime for casinos, online games and horse racing. Media reports suggest 28 percent tax being imposed on online gaming. The industry is up in arms against the recommendation. It is said that business will move underground or to other jurisdictions. It would be tragic if administrative convenience of GST officers alone makes the case to decide the rate of taxation. There is a need for building capacity and self-regulation to manage present day complexities of the digital economy. iReport.com: The Taxation of Online Games in India: A Complicated and Difficult to Define Scenario.
Foreign Gambling Operators Welcome Steps towards Regulation of Indian Online Gaming Space. I&B Ministry Issues Advisory on G gambling advertising.
The panel of ministers advising the government on GST for online gaming, casinos, and horse racing will meet again on July 12. The panel will finalise recommendations on the tax rates for these activities. Online gaming industry associations are concerned about the proposed tax on Full Contest Pool rather than on Gross Gaming Revenue (GGR). The Government has delayed the decision by 15 days. The final decision is expected to be in favour of the gaming industries. It is hoped that the panel's recommendations will be more favourable to them. They are worried about a higher GST rate of 28 percent as against 18 percent.
GST Council has sent the proposal to levy a 28% tax on online gaming, casinos and horse racing back to a Group of Ministers. The GoM has been asked to submit its report by July 15 and it will be taken up in the next GST council meeting in Madurai in first week of August. Goa government had objected to the recommendations during the Gom proceedings. According to existing rules, the three activities are to be taxed without differentiation at 28%.
The Ministry of Information and Broadcasting has issued an advisory dated June 13, 2022 to print media, private satellite television channels and publishers of news and current affairs content on digital media to adhere to the Advertising Standards Council of India guidelines on advertisements of online betting and gaming platforms. The Indian Constitution states that gambling is a state subject. In a majority of states, online real-money gaming has been interpreted by Indian Courts to fall within the exception ‘game of skill’. Assam, Odisha, Telangana and Andhra Pradesh prohibit activities in relation to online gaming.
GST Council Defers 10 Hike On Online Gaming. Karnataka Chief Minister BS Bommai announced that the decision has been deferred. The GoM on online gaming has another 15 days to discuss the issue. The GST rate on the online games falls within 2 slabs – 18% and 28%. Online games that involve financial betting attract 28% GST, while other online game are taxed at 18%. Online gaming platforms which earn commission are liable to pay GST at the rate of 18 percent on their commission. RSM India director Siddharth Surana believes a higher GST of 28%, as against 18%, would have an impact on profitability and pricing of the internet gamers.
The government's plan to levy highest goods and services tax (GST) slab on online gaming has the industry worried about future growth plans. The GST Council is set to meet on 28 June to decide which slab will be applied. Online gaming firms fear that the government will levy the highest GST slab (28%) on the gross gaming value (GGV) which is the total money deposited by users. The industry expert predicts that fantasy sports firms will have to reduce the prize pools they offer, which will shrink the investments players make on their platforms. They also fear the reduction in the prizes will drive players to offshore betting platforms that offer fantasy sport, online rummy, and poker.
The government has advised print, electronic and digital media to stop advertising online betting platforms. Online gambling platforms are not registered under the Central Goods and Services Tax Act, 2017 and do not pay applicable direct and indirect taxes. Betting and gambling is illegal in most parts of India. Elara Capital believes e-commerce contributes 13% of ad spends for traditional media. Online betting platform component would be higher towards 30%. ecommerce vertical grew 100% year-on-year in CY21. Dream11 and My11 circle were both featured in the top 15 advertiser list as per Madison.
Harm from online gaming is on the rise in India. Lawmakers argue whether real money games (RMG) constitute gambling.
Basavaraj Bommai is frustrated with the lack of implementation of a law to ban online gambling in Karnataka. The All-India Gaming Federation challenged the amendment in the High Court. It was struck down in February this year. Bommai was determined to implement the law. He has seen families ruined due to betting and gambling. He was Home Minister. An online gaming operator offered to provide free Covid-19 vaccines to one lakh people in Shiggaon Assembly constituency. K R Ramesh Kumar expressed concern over betting during IPL cricket matches.
Tamil Nadu is appealing to the Supreme Court to overturn the recent ruling on online gambling in India. If the ruling is upheld, it could change the entire gambling landscape in the country. The ruling could also open the door for foreign investment. SevenJackpotsresearch team believes regulation is the best way forward. They believe it would pave the way for tax, personal data protection, fair competition, and tech transparency.
Karnataka High Court strikes down the state's online gambling law as unconstitutional. The High court had reserved its judgement on December 22. Several petitioners had challenged the constitutional legitimacy of the law. The law had prohibited all types of internet gaming where the move of money is involved.
The legal situation of casinos in India is far from homogeneous. Daman, Goa and Sikkim have clear laws, but not the rest of the country. Online gaming is a different matter. In 2021, a new wave of bans will come into effect.
Online gambling was banned in Karnataka since last year.
Karnataka High Court struck down the Act 2021 banning online gaming with stakes and betting in the state as unconstitutional. The verdict will set a precedent for the scope of gaming regulations in India. Fantasy sports apps and real money gaming platforms can restart their operations in Karnataka.
Govt. opposes stay on new law banning online gaming. It says petitioners have failed to show cause to challenge the validity of the new legislation. The bench has adjourned further hearing till November 30. The All-India Gaming Federation, individual online game firms, operators and the players have challenged the legality of Karnataka Police (Amendment) Act, 2021.
Online gaming industry is booming in India. PUBG Mobile has ushered in multiplayer mobile gaming in the country. Ludo King got players aged 45 and above interested in online gaming. Competitive skill-based games commonly known as e-sports are turning gaming into a mainstream event. Indian Olympic Association announced in February that it will officially recognise e sports as a sporting event and Indian gamers can compete at the Asian Games in 2022.
The online gaming industry has the potential to generate $2 Bn in revenues by 2023. Indian states are undecided on the legalisation of online games. Fantasy gaming platforms such as Dream11, Mobile Premier League (MPL), MyTeam11 and Halaplay are popular in India. Earlier this week, Dream 11 suspended its operations in Karnataka due to a recent ban. MPL, Nazara games’ Hlaplay, Paytm First Games and other online casino-kind games have stopped offering cash games to users in the state.
Karnataka legislature passed a law to amend the Karnataka Police Act, 1963 on September 21. The Karnata Police (Amendment) Act 2021 came into force on October 5. It makes all forms of gambling cognisable and non-bailable offence. Several online gaming firms geo-locked their apps and sites in Karnatta to prevent police action if customers access the sites. An FIR was registered against Dream 11 for running a gaming house.
There is no interim relief for petitioners challenging Karnataka's new online gambling law. The next hearing on the petitions will take place after Diwali in November 2021. Dream11 co-founders Bhavit Sheth and Harsh Jain are challenging an FIR against them for violating the State's gambling ban by continuing the operations of Dream 11 in Karnata after the notification of the new law, which was notified on October 5. The Indian online gaming sector touched about $1 billion in 2020 and is expected to reach $2 billion by 2023. In September, the Kerala High Court quashed the state government’s ban on online rummy played for stakes.
State Govt Opposes Petitions Challenging Ban On Online Gambling In Karnataka, Says 'No Harm In Preventing Public From Squandering Their Hard Earned Money'
The All India Gaming Federation is challenging the Constitutional validity of the Karnataka Police (Amendment) Act 2021. The Act bans all online gambling and betting and provides maximum imprisonment of three years and a penalty upto Rs 1 lakh for violation of its provisions. Senior Advocate Arvind Datar argues that the Supreme Court has laid down clear principles of what comes under entry 34 List II of Act. Dater also argues online games are not within the state jurisdiction. Justice Krishna S Dixit questions the meaning of 'regulated' and 'extreme form of regulation'. i.e. if it is allowed everywhere you cannot say it's banned in Karnata.
Karnataka High Court will hear petitions challenging the law banning online gambling on October 27. The All India Gaming Federation and several gaming firms oppose the new law. They argue that it will affect the growing gaming industry. Karnataka legislature passed a law to amend the Karnata Police Act, 1963, to ban all forms of gambling, including online betting. The Karnatta Police (Amendment) Bill, 2021, aims to make gambling a cognisable and non-bailable offence.
Karnataka High Court will start hearing petitions challenging the new law banning online betting games on Wednesday, October 27. The All India Gaming Federation and individual companies have filed the petitions. Advocate General Prabhuling Navadgi will file a statement of objections by Wednesday. There are 92 online gaming companies registered in Bengaluru alone, employing 4,000 people. Kerala High court had stayed a Kerala government notification to ban online rummy under Kerala Gaming Act, 1960. It relied on an earlier Supreme Court which held online rummy as a game of skill.
The All-India Gaming Federation has moved the Karnataka High Court challenging the validity of an amendment to the law banning online games. The Act came into effect from October 5, 2021. It is not allowed to operate from Bengaluru. The next date of hearing is on October 27, 2019. Justice Krishna S Dixit passed the order to hear the petition.
Karnataka High Court will hear a batch of petitions challenging the Constitutional validity of the Karnataka Police (Amendment) Act 2021 on Wednesday. The petition was filed by the ALL INDIA GAMING FEDERATION. It claims the Act has affected the fundamental right of freedom of petitioners to practise any profession or to carry on any trade or business. The Madras High court has recently struck down an amendment made in the Tamil Nadu Gaming and Police Laws (amendment), 2021. According to the petition, the amendment has imposed a blanket ban on all forms of game of skill involving wagering and betting.
Karnataka banned online gambling on October 5. The All India Gaming Federation, a self-regulating gaming body, along with three other gaming operators, filed a writ petition in the state's High Court challenging the legality of the amended act. The new law explicitly bans and criminalizes all forms of online gaming where stakes are involved, including games of skill.
All India Gaming Federation (AIGF) and four real-money gaming companies have moved the Karnataka High Court challenging the state government's online gambling law that came into effect on October 5. The law bans online games that are played with stakes. AIGf CEO Roland Landers said the law would harm the domestic online gaming industry. The Madras High court had recently struck down the amendment made to the Tamil Nadu Gaming Act, 1930 that imposed ban on online game played on stakes and a similar act passed by the Kerala government to such onlinegames was struck by High Courts.
MPL, Games24x7, AIGF, and Gameskraft have filed writ petitions in the Karnataka High Court appealing against the state's online gambling law that came into effect on October 5. The law had outlawed all forms of online gaming where transfer of money is involved. Several Indian states have banned or tried to ban real-money games in recent years. The Supreme Court upheld fantasy sports as a game of skill in July this year. South India is a big market for games like Rummy. There are more positives than negatives in real money gaming sector in last two months.
Karnataka government passed a law banning online gambling. The gaming industry is concerned about the impact on their businesses. They want the government to define the terms 'games of chance' and 'game of skill'. The industry will challenge the law in court. The Supreme Court has ruled that games that are preponderantly based on skill are games of skills. A similar law was recently struck down in Tamil Nadu. Biren Ghose cautions that the ban could encourage illegitimate platforms to thrive. He is the chairman of CII National Committee for Animation, Visual Effects, Games and Comics.
The Karnataka Assembly has passed an amendment to the Karnata Police Act, 1963, which seeks to ban online gaming and curtail online gambling. Chief Minister Basavaraj Bommai said the proposal is not valid for online games that comply with the "game of skills". The Confederation of All India Traders (CAIT) has said that this bill will impact the Indian Gaming Startup industry of over 600 companies. The CAIT India also endorse a ban on foreign apps and a similar ban for Indian games skills. The bill was introduced in the Legislative Assembly by Araga Jnanendra, State Home Minister.
Karnataka Draft Bill is said to have defined online games as all forms of wagering or betting. Telangana, Andhra Pradesh, Assam, Odisha, Nagaland and Sikkim have put a ban on online rummy. Tamil Nadu high court has held that online rummy involves high dominance of skills and cannot be considered as gambling. Ludo is still being considered by the Bombay high Court.
The online gaming industry in India has seen exponential growth in terms of revenue and usage. The All-India Gaming Federation is following up with the GST Council to provide clarity on the taxability of the revenue derived by the industry. A panel of seven ministers from various state governments has been formed to analyze and evaluate the taxes on online games. The panel has also been asked to review the taxation of horse race clubs and casinos.