Good Morning. India’s skill-based online gaming industry is on tenterhooks over a proposal to hike the general sales tax to 28 percent of the total face value bet. The GST Council met on June 29th to discuss the issue and has deferred for another 15 days to allow more time for consideration. Igaming consultant Jaydeep Chakravartty writes that implementing the proposal as it stands would be catastrophic for the nascent industry. India is projected to be one of the largest online gaming markets in the world and this risks nipping any growth in the bud.
What you need to know
- Macau’s six operators are likely to post EBITDA losses in 2Q22 after gross gambling revenue for June hit its lowest level in 21 months: J.P. Morgan.
- The South Australian regulator will launch an inquiry into SkyCity Adelaide, saying recent probes revealed systemic problems in the casino industry.
- Macau’s operators are reportedly asking staff to take various forms of leave after being told to reduce the number of employees at work by 90 percent.
On the radar
- President “Bong” hasn’t replaced Andrea Domingo as PAGCOR Chair.
- Genting Group’s U.S. three-month GGR tracks higher in May: Nomura.
AGB Intelligence
DEEP DIVE
India online market faces potentially “catastrophic” GST hike
India is mulling a proposal to hike the Goods and Services Tax on online gaming from 18 percent to 28 percent in a move that would be catastrophic for the emerging industry, writes Jaydeep Chakravartty. The GST Council met on Wednesday, 29 June to discuss the proposal but deferred the decision for a further 15 days. The same tax rate would also apply to casinos and betting on horse racing. The main issue is that the proposal on the table is to levy the tax on the entire contest entry amount rather than gross gambling revenue. This would nip the potential of the entire industry in the bud, making businesses unviable.
Industry Updates
- SEGA SAMMY CREATION to debut Genesis Crest 43J at G2E Asia.
- Genting’s Resorts World LV unveils passenger loop station.
- SOFTSWISS expands gaming portfolio with 3 Oaks Gaming.
- 888 Holdings completes William Hill acquisition, shufles leadership.
- Light & Wonder wraps up 3-Day systems user conference.
MEMBERSHIP | MAGAZINE | ASEAN | CAREERS