Indian gaming stocks took a plunge on Monday after news that the government would be ramping up its ‘sin tax’ to 40 percent.
The move encompasses a restructuring of the current four-tier structure into two rates.
The changes encompass a 5 percent tax on essentials and daily-use goods, an 18 percent Merit Rate for most other goods and services, the elimination of the 28 percent tier and a 40 percent tax rate for ‘sin and luxury goods’, including gambling.
While this is likely to push down the overall price of household goods and medicines, shocks were already felt in the stock market as reports effectively confirmed what the industry had been dreading.
Delta Corp had already registered its dissatisfaction with the 28 percent GST, implemented in October of 2023, with the new increase likely to have a significant effect on its results.
The company saw a slight increase in gaming revenue in 2Q25, up by 3.8 percent yearly.
