Super Group Pulls Out of Indian Market Due to New Online Betting Tax

In response to a recent surge in online gambling taxes, Super Group, the operator behind Betway, has made the decision to exit the Indian market. The new tax rate, which took effect on October 1st, imposes a flat 28% turnover tax on online gambling, casino activities, and horse race betting. This move was announced by the Goods and Services Tax Council (GST) in India back in July.

Super Group's CEO, Neal Menashe, stated, "We are continuously evaluating evolving regulatory landscapes across the many markets we serve. Informed by years of operating our geographically diverse business, we remain confident about the long-term growth opportunities in front of us." Consequently, the company has promptly ceased all services in the Indian market, deeming it commercially unviable under the new tax regime.

Under this revised tax structure, the levy applies to the full-face value of a bet rather than the gross gaming revenue (GGR), essentially making it a turnover-based tax. For online gambling, the tax will be calculated based on the total value of all bets placed with operators. In land-based casinos, the tax will be imposed on the face value of chips purchased at each venue. In horse racing, the tax will be applicable to the full value of bets placed with bookmakers and totalisators.

The All India Gaming Federation (AIGF), the apex industry body for online gambling in India, expressed its strong disapproval of the decision. The AIGF emphasized that this higher tax rate could severely challenge the viability of businesses in the sector, potentially driving players towards unlicensed operators. They warned that "this decision will be extremely detrimental to the entire Indian gaming industry, with the GST on deposit increasing liability up to 400-500%, and will lead to lakhs of job losses."

This development marks the second significant change in India's online gambling market this year. In January, the Indian government introduced a new set of regulations to oversee online gambling. These rules stipulate that any online game offered must comply with existing laws, including state-wide gambling prohibitions. Additionally, proposals were put forth for the formation of self-regulatory bodies comprising online gaming businesses, responsible for establishing industry rules. These would primarily focus on player protection, addiction prevention, financial crime deterrence, and child safeguarding.

Despite its withdrawal from the Indian market, Super Group asserts that its full-year financial projections remain unchanged, emphasizing its optimism regarding long-term growth prospects in other markets.

By fLEXI tEAM