Finance Minister Nirmala Sitharaman has announced revised GST slabs at the 56th GST Council meeting, with tax on online real money gaming and betting hiked from 28% to 40%, placing it in the same bracket as casinos and other ‘sin goods’. At the same time, household games have seen a GST reduction to 5%.
The move follows Parliament’s recent ban on online real money gaming to curb fraud, money laundering, terror financing, and related risks flagged by the government.
This marks the second major policy strike against the industry within weeks. In August, Parliament passed the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which prohibits online real money gaming while carving out exemptions for esports and recreational gaming.
Together, the two measures are being seen by industry leaders as a “double attack” by the government, regulatory prohibition coupled with fiscal tightening.
