Delhi, India
Indian authorities have reduced their proposed Goods and Services Tax (GST) demands against three major online gaming operators by a combined Rs52,915 crore (US$5.56 billion) following an earlier Supreme Court ruling on the taxation of online real money gaming.
According to a report by local trade media outlet Exchange4media, which reviewed the relevant orders, the final adjudications confirm principal GST liabilities totalling Rs17,298 crore (US$1.82 billion) against Sporta Technologies – operator of fantasy sports platform Dream11 – as well as Gameskraft Technologies and Play Games 24×7, down from original proposed demands of approximately Rs70,213 crore (US$7.38 billion).
The reductions represent 75.4% of the original demands, although all three companies remain liable for substantial tax amounts, with interest and penalties also applicable.
Sporta Technologies received the largest reduction in absolute terms, with its proposed demand cut by Rs21,603 crore (US$2.27 billion) to Rs6,691 crore (US$703 million). Gameskraft Technologies saw its demand reduced by Rs16,102 crore (US$1.69 billion) to Rs4,887 crore (US$514 million), while Play Games 24×7’s demand fell by Rs15,210 crore (US$1.60 billion) to Rs5,720 crore (US$601 million).
The revised assessments follow the Supreme Court of India’s 27 May 2026 judgment concerning GST treatment and the valuation of online gaming transactions.
The orders cover tax liabilities arising over several years, with the assessments against Sporta Technologies and Play Games 24×7 covering the period from July 2017 to March 2023, while Gameskraft’s assessment covers August 2017 to June 2022.
Despite the substantial reductions, the companies continue to face significant financial liabilities. Gameskraft and Play Games 24×7 have each been penalized an amount equivalent to their confirmed principal GST liability, while Sporta Technologies’ penalty treatment differs. Applicable interest and amounts already paid must also be taken into account when determining the final sums payable.
The revised assessments reflect the application of the Supreme Court’s ruling to the calculation of taxable online gaming transactions, including the treatment of player deposits and winnings redeployed into subsequent games.
While the outcome substantially reduces the demands initially raised against the three operators, it does not represent a blanket waiver of their outstanding GST obligations, the report notes.
India’s online gaming industry has faced mounting tax and regulatory pressure in recent years, with the application of GST to real-money gaming platforms emerging as a core dispute. This followed a move by the government in 2023 to introduce a 28% GST levy on the full face value of bets and deposits rather than the platform fees or commissions previously used by many operators to calculate their tax liabilities.
The changes triggered billions of dollars in retrospective tax demands against gaming companies, which argued that the revised framework should apply only from October 2023. However, the Supreme Court’s May 2026 ruling ultimately upheld the constitutional validity of the levy and its retrospective application, even as the full amounts owed were eased.
Delta Corp, India’s only listed gaming operator, was also caught up in the GST battle in regard to its land-based operations but stated earlier this year that the Supreme Court’s May ruling was a “favorable outcome.”
Delta Corp operates India’s two largest offshore casinos, Deltin Royale and Deltin JAQK, and the country’s only floating hotel with a casino, King Casino, all located in Goa. It also owns and operates the Deltin Suites in Goa and Casino Deltin Denzong in Sikkim, as well as the 176-room five-star hotel The Deltin in Daman.
