Real-Money Gaming in India: Offshore Betting and 28% GST
Why in the news
Legal online real-money gaming is caught between heavy taxation and fast-growing illegal offshore competitors, with regulation still unsettled.
Key facts
- Offshore apps avoid tax and rules, use mule bank accounts and keep switching domains.
- Registered operators, including Dream11 and PokerBaazi, face 28% GST; the government has not changed the policy despite industry appeals.
- Action was taken against the Mahadev app, but 1xBet and similar foreign firms shift banks and domains.
| Segment | Figure |
|---|---|
| Offshore firms’ growth | About 30% CAGR |
| Legal firms’ growth | 10%-15% |
| Illegal market, 2024 estimate | ₹8.2 lakh crore |
Deals and rules
- Consolidation: Head Digital Works bought Adda52 (₹491 crore); Nazara took a large holding in PokerBaazi’s parent; OneVerse acquired PokerDangal.
- The IT Amendment Rules, 2023 (self-regulation) are stalled; the sector has funded playtime-limit studies and drawn up an ethics code.
Exam angle
- GST rate on RMG: 28%.
- Terms: mule account, CAGR.