Delta Corp and Nazara Technologies Shares Slide by 7% Following GST Council’s 40% Levy on Casinos and Gaming

India Imposes 40% GST on Online Gaming and Casinos

September 4, 2025

New Delhi – Shares of several prominent Indian gaming and casino companies experienced a sharp decline on Thursday following the Goods and Services Tax (GST) Council’s approval of a substantial 40% tax on casinos, betting platforms, and online money games. The decision, announced after a lengthy ten-and-a-half-hour meeting, is anticipated to significantly reshape the country’s gaming landscape.

Notable Tax Hike and Rate Restructuring

The 56th GST Council meeting, presided over by Finance Minister Nirmala Sitharaman, not only introduced the 40% levy on actionable claims like betting and casinos but also initiated a simplification of the existing GST rate structure. The previous four-tier system will be consolidated into two rates: 5% and 18%. This streamlining is intended to improve compliance and reduce complexities for businesses.

Impact on Key companies

Delta Corp, a leading casino operator with holdings in Goa and Sikkim, saw its shares fall as much as 7.2% on the Bombay Stock Exchange, closing at Rs 88.35. Nazara Technologies, India’s largest listed gaming company by market capitalization, also experienced a downturn, with its shares dropping 1.6%. Delta Corp had recently paused plans for a major integrated resort project in Goa, citing uncertainties surrounding the GST framework.

Broader Implications for the Gaming sector

The new tax rate will take effect from September 22nd. While sporting events sanctioned by national and international federations will continue to be taxed at 18% for tickets exceeding Rs 500, high-profile events like the Indian Premier League (IPL) will now fall under the 40% tax bracket.Industry analysts predict that this increased tax burden could stifle innovation and growth within the online gaming and casino sectors.

Key GST Rate Changes: A Summary

Category	Previous GST Rate	New GST Rate
Standard Goods	Various (5%, 12%, 18%, 28%)	5% or 18%
casinos, Betting, Online Gaming	Varies	40%
Recognized Sporting Events (above Rs 500)	18%	18%

Did You Know? The Indian online gaming industry was valued at approximately $2.8 billion in 2024 and is projected to reach $7.5 billion by 2029,according to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI).

Pro Tip: Businesses operating in the gaming and casino sectors shoudl immediately review their pricing strategies and financial planning to account for the new 40% GST rate.

Understanding the GST System in India

The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services. Introduced in 2017,it replaced multiple cascading taxes previously imposed by the central and state governments. The GST aims to create a unified national market,simplify tax compliance,and boost economic growth. The system operates on a destination-based consumption tax, meaning the tax is levied on the state where the goods or services are consumed, not where they are produced.

The GST Council, comprising representatives from the central and state governments, is responsible for making recommendations on GST rates and other policy matters.Changes to the GST framework are frequent, reflecting the government’s ongoing efforts to refine the system and address emerging economic challenges.

Frequently Asked Questions about the New GST Rates

• What is the new GST rate for online gaming? The new GST rate for online gaming is 40%.
• When will the new GST rates come into effect? The new GST rates will be effective from September 22nd.
• How will this impact casino operators? Casino operators will face a significantly higher tax burden,possibly impacting their profitability.
• What was the previous GST structure? The previous GST structure had four rates: 5%, 12%, 18%, and 28%.
• What is the purpose of simplifying the GST rates? The simplification aims to reduce compliance costs and streamline the indirect tax regime.
• Will this affect tickets to all sporting events? No, tickets for recognized sporting events under Rs 500 are exempt and those over Rs 500 are taxed at 18%.
• How does the GST Council determine these rates? The GST Council comprises representatives from the central and state governments and assesses economic factors.

What are your thoughts on the new tax regulations? Will this hinder the growth of the gaming industry in India? Share your opinions in the comments below!

what are the key differences between the previous GST rates and the new 40% GST levy on casinos and gaming?

The Indian gaming and casino industry experienced a significant jolt on September 4th, 2025, as shares of Delta Corp and Nazara Technologies plummeted by approximately 7%.This sharp decline follows the Goods and Services Tax (GST) Council’s recent decision to impose a hefty 40% GST on the face value of online gaming, casinos, and horse racing. This article delves into the implications of this new tax regime, its impact on key players like delta Corp and Nazara Technologies, and what investors should consider moving forward.

Understanding the New GST Levy

The 40% GST levy represents a significant increase from the previous 28% tax on casinos and the varying rates applied to online gaming (frequently enough 18%). The key change lies in the basis of taxation. previously, GST was levied on the gross gaming revenue (GGR), the profit retained by the gaming platform. Now, it’s calculated on the entire face value of each bet placed, regardless of whether the player wins or loses.

This shift has sparked considerable debate within the industry, wiht concerns raised about its potential to stifle growth and drive players towards illegal, unregulated platforms. Terms like “GST on betting amounts,” “online gaming tax India,” and “casino GST rate” are trending as investors and industry professionals seek clarity.

Impact on Delta Corp

Delta Corp, a leading player in the Indian casino space with operations in Goa, Sikkim, and Daman, has been particularly hard hit. The company operates both land-based casinos and an online gaming platform.

Land-Based Casino Impact: The 40% GST significantly increases the operational costs for Delta Corp’s physical casinos. this will likely translate to higher prices for patrons or reduced profitability for the company.

online Gaming Segment: Delta Corp’s Adda52 online poker platform will face a dramatic increase in tax liability. The new levy makes it considerably more expensive to operate, potentially impacting player acquisition and retention.

Stock Performance: As of today, September 4th, 2025, Delta Corp shares are down 7.12% on the Bombay Stock Exchange (BSE), reflecting investor concerns about the company’s future earnings potential. Analysts are revising their price targets for Delta Corp stock downwards.

Nazara Technologies’ Response and Challenges

Nazara Technologies, a diversified gaming company with interests in esports, mobile gaming, and online real-money gaming, is also feeling the pressure. While Nazara’s portfolio is broader than Delta Corp’s, its real-money gaming (RMG) segment is a significant contributor to revenue.

RMG Segment Vulnerability: nazara’s RMG businesses, including platforms like Junglee Rummy, will be directly affected by the 40% GST.The increased tax burden will likely reduce margins and potentially slow down growth in this segment.

Diversification as a Buffer: Nazara’s diversified business model offers some protection. Its esports and mobile gaming segments, which are less reliant on real-money wagering, are expected to be less impacted.

Stock Reaction: Nazara Technologies shares experienced a 6.85% decline today, mirroring the negative sentiment surrounding the GST announcement. Investors are closely watching how Nazara adapts its business strategy to mitigate the impact.

Industry-Wide Implications & Potential Outcomes

The 40% GST levy isn’t just impacting Delta Corp and Nazara Technologies; it’s sending ripples throughout the entire Indian online gaming and casino industry.

Reduced Player Base: Higher taxes will likely make online gaming and casino services more expensive for consumers, potentially leading to a decrease in the number of active players.

Shift to Illegal Platforms: A significant concern is that the increased tax burden will drive players towards unregulated, offshore gaming platforms, where taxes are not collected. This poses risks to consumer protection and revenue for the government.

Industry Lobbying Efforts: Industry associations are actively lobbying the government to reconsider the GST rate, arguing that it is indeed unsustainable and detrimental to the industry’s growth. Discussions around “GST rate revision gaming” and “impact of GST on online gaming” are gaining momentum.

Legal Challenges: Several gaming companies are exploring legal options to challenge the validity of the new GST levy.

investor Considerations & Future Outlook

Investors in Delta Corp, Nazara Technologies, and other gaming companies need to carefully assess the risks and opportunities presented by the new GST regime.

Re-evaluate Stock Holdings: Consider re-evaluating your investment positions in these companies, taking into account the potential for reduced earnings and slower growth.

Monitor Industry Developments: Stay informed about the ongoing discussions between the industry and the government regarding the GST rate.

Focus on Diversified Players: Companies with diversified revenue streams, like Nazara Technologies, might potentially be better positioned to weather the storm than those heavily reliant on real-money gaming.

Long-Term Growth Potential: Despite the current challenges, the Indian gaming market still holds significant long-term growth potential. However, the pace of growth may be slower than previously anticipated.

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