Know Why bet365 and Betway Had Left The Indian Gambling Market

That is, it will end the internet gaming industry in India since there would be the imposition of a 28% Goods and Services Tax on the entire bets put out.

On the 1st of October 2024, leading operators like Bet365 and Betway declared to be exiting the Indian market as they could not operate such a business to inflict that financial cost.

The 18% GST charge was applied on gross gaming revenue-that is, the absolute difference between the total bets placed and payouts made. But the 28% tax on the total amount of the bet, win or lose, has multiplied the operational cost manifold for the platforms. Bet365 has already shut shop in India and Betway shut shop on October 1, 2024.

This has adversely affected the Indian gamblers. The additional tax burden includes charges and reduces the winning amount. On the whole, the appeal to online gambling has become less attractive. It further restricts their choice by denying them access to known sites. In such situations, Indians are forced to settle for less, perhaps not very secure, and not even registered ones.

The Indian government is also considering placing this tax on online gaming so it can get all the money fasted to them by this market. According to reports from the finance minister, the industry of online gaming grew by 412% after this implementation. Within six months after the implementation of this tax, the industry raised an amount of ₹6,909 crore.

Industry observers, however, feel that with such a high tax rate, growth and innovation in the segment would be derailed. Existing players as well as new entrants will face a new financial burden, and it might even discourage entry into the Indian market, which means less variety and quality services that consumers could be able to garner from online gaming platforms. 

With this, it is quite clear that the 28% GST imposed on the country's online gambling made huge players like Bet365 and Betway pull out from the Indian market completely, which brought about enormous changes in India's online gaming landscape. Success for the government has been about raising revenue, but growth for the industry and consumer choice will only benefit in the long run.