TLDR India’s Supreme Court has ruled poker, fantasy sports, and rummy are subject to a 28% Goods and Services Tax as gambling The tax applies retrospectively, meaning operators face back-tax demands from before 2023 Tax is calculated on the full value of bets placed, not just gross gaming revenue Back taxes owed across the sector could total as much as US$14 billion The ruling adds pressure to a sector already facing a parliamentary ban on real-money online gaming
India’s Supreme Court has ruled that skill-based games including poker, fantasy sports, and rummy fall under the definition of gambling for tax purposes. The decision means these games are subject to a 28% Goods and Services Tax.
The court also confirmed that the tax applies retrospectively. That means operators could face tax demands going back before 2023, when the GST framework was updated.
A Multi-Billion Dollar Tax Bill
Estimates from local media suggest the total back-tax bill across the sector could reach as much as US$14 billion. That is a serious financial burden for an industry that was already under strain.
The court’s ruling rests on a specific interpretation of gambling. It said that betting and gambling are defined by whether stakes are placed on uncertain outcomes, not by whether the game involves skill or chance.
That reasoning allowed the court to support the government’s position on the tax question.
How the Tax Is Calculated
A key part of the ruling is how the tax is measured. The court confirmed it should be calculated on the full face value of bets placed, not on gross gaming revenue.
That distinction matters a lot for operators. Taxing total stakes rather than revenue can result in a much larger tax bill, especially in a business where margins are already thin.
Online gaming