FinanceStock Market

Delta Shares Plummet 28% as Government Imposes 28% Casino GST

Delta Corp’s shares plummet by 28% to Rs 178.20 following the GST Council’s approval of imposing 28% GST on online gaming, horse racing, and casinos at full value.

During morning trade, shares of Nazara Technologies, a digital gaming and e-sports company, experienced a decline of over 14%. However, the company managed to recover most of the losses after clarifying that its skill-based real money gaming business contributed only 5.2% of its FY23 revenues.

The online gaming industry in the country faces a significant setback as the GST Council has announced a 28% tax on the entire value of user payments. Furthermore, the GST will be imposed on online gaming without distinguishing between skill-based and chance-based games.

Nazara Technologies has clarified that the 28% GST imposed by the GST Council on online gaming will only apply to the skill-based real money gaming segment of its business. This particular segment contributed 5.2% to the company’s consolidated revenue during FY23.

Nazara Technologies, in an exchange filing, has announced that it will proactively address any potential impact on its business segment and expects minimal impact on overall revenues. The company is taking measures to mitigate the effects of the situation.

Nazara Technologies, affirming its commitment to growth, has stated that it will persist in pursuing both organic and inorganic opportunities across its diverse segments. However, industry stakeholders have criticized the decision, labeling it as “unconstitutional and irrational.” Concerns have been raised regarding the potential impact on jobs and investments within the segment.

Bhavin Pandya, the co-founder and co-CEO of Games 24×7, expressed concern over the decision, stating that it would effectively push consumers towards offshore and illegal platforms that evade taxes. This, in turn, could lead to a loss of tax revenue and an outflow of foreign exchange from the country.

Shivani Jha, a Tech Policy Lawyer and Director of EPWA (E-Gamers and Players Welfare Association), highlighted that the increase in tax from 1.8 rupees per 100 rupees spent on a game to 28 rupees per 100 rupees would discourage players and burden gaming professionals who rely on it as their livelihood. This could potentially push them towards offshore platforms. The move raises concerns about the future of creating a progressive digital gaming ecosystem in the country.

According to a collaborative report by the Federation of Indian Chambers of Commerce & Industry and EY, online gaming companies in India generated a revenue of Rs 13,500 crore in 2022. The report projected that the segment would witness revenue of Rs 16,700 crore in 2023 and Rs 23,100 crore in 2025, excluding taxes.


Delta Corp shares plummeted 28% due to the government’s 28% GST on online gaming. Nazara Technologies recovered after clarifying the impact on its skill-based gaming segment. Concerns were raised about offshore platforms, discouraging players, and burdening professionals. The online gaming industry in India is projected to see substantial revenue growth.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.