Indian gaming stocks dropped sharply on Monday after the government of India announced plans to raise its ‘sin tax’ to 40 percent.
The move restructures the current four-tier GST system into two rates: 5 percent on essentials and daily-use goods, 18 percent on most goods and services, and 40 percent on sin and luxury products, including gambling. Authorities in India will also eliminate the 28 percent tier.
While households in India may benefit from lower prices on daily essentials and medicines, the gambling industry reacted with concern. The news triggered immediate shocks in the stock market, confirming long-standing fears within the sector.
Delta Corp, India’s largest listed casino and gaming company, had already voiced frustration over the 28 percent GST introduced in October 2023. The jump to 40 percent could have a major impact on its future results, significantly affecting India’s gaming landscape.
Despite a 3.8 percent year-on-year rise in gaming revenue in Q2 2025, analysts warn that the higher tax burden may offset recent gains. Industry leaders in India believe the increase will deter investment, restrict growth, and put more pressure on listed operators.
