GST on Online Betting in India 2026
Complete Guide
Everything you need to know about the 28% GST on online betting, the 30% tax on winnings, why bet365 left India, and how it all affects you as a punter.
Updated: April 2026 | Factual tax information | Not financial advice
GST Rate
28%
On full face value of bets
TDS on Winnings
30%
On net winnings above ₹10,000/year
Effective From
Oct 2023
Following GST Council decision
What is the 28% GST on Online Betting?
In July 2023, the 50th GST Council — India's apex body for indirect tax decisions — announced that all forms of online gaming, betting and gambling would attract 28% Goods and Services Tax (GST). This was a landmark decision that fundamentally changed the economics of online betting in India.
⚠️ The Critical Detail: Full Face Value
The most controversial aspect of this decision is that the 28% GST applies to the full face value of every bet placed — not just the operator's gross gaming revenue (GGR) or profit margin.
Example:
- • You deposit ₹1,000 and place a bet → ₹280 GST applies on that ₹1,000
- • If you win ₹2,000 and bet it again → another ₹560 GST applies
- • The tax compounds with every bet, not just on your initial deposit
This is drastically different from how most regulated betting markets work globally. In the UK, for example, operators pay 21% tax on their GGR (the difference between what players wager and what they win back). Since a typical operator's margin is 5-10% of turnover, the effective tax rate on wagers in the UK is roughly 1-2%.
India's 28% on full face value is, by comparison, one of the highest effective tax rates on betting anywhere in the world. Industry groups such as the Federation of Indian Fantasy Sports (FIFS) and E-Gaming Federation (EGF) argued this would make legal operations unviable and push players towards unregulated offshore platforms — which is largely what has happened.
How Does the GST Affect You as a Bettor?
✅ Offshore Sites (Curaçao Licensed)
If you bet on offshore sites like Dafabet, 22Bet, Melbet or Parimatch, you do not pay 28% GST on your bets.
- • These operators are licensed in Curaçao
- • They operate outside Indian tax jurisdiction
- • No GST is charged on deposits or wagers
- • Your full deposit goes towards betting
❌ Domestic Operators
Operators registered in India must charge 28% GST on the full value of bets. This makes domestic platforms significantly more expensive to use.
- • ₹280 GST on every ₹1,000 wagered
- • Tax applies each time you place a bet
- • Dramatically reduces potential returns
- • This is why most sports bettors use offshore sites
Important note: While you don't pay GST on offshore betting sites, you are still legally required to pay income tax on your net winnings under Section 194BA of the Income Tax Act. See the Tax on Winnings section below for details.
Timeline of Events
GST Council Decision
The 50th GST Council meeting confirms 28% GST on the full face value of bets placed on online gaming, casinos and horse racing. Industry bodies protest the decision.
bet365 Exits India
bet365, the world's largest online bookmaker, ceases operations in India. The company had been exploring a compliant Indian operation but the 28% tax made it commercially unviable.
GST Comes Into Force
The amended GST law takes effect. Domestic operators must now charge 28% GST on the full deposit/bet value. Foreign operators are also technically liable but enforcement is limited.
Show-Cause Notices Issued
GST authorities issue show-cause notices worth thousands of crores to several domestic gaming companies including Dream11 and Gameskraft.
Industry Challenges
Several domestic operators challenge the GST notices in courts. The industry argues the tax is disproportionate and will drive players to unregulated offshore platforms.
Current Status
The 28% GST on full face value remains in force. Offshore operators (Dafabet, 22Bet, Melbet, Parimatch) continue to serve Indian players under Curaçao licences without charging GST.
Why Did bet365 Leave India?
bet365, the world's largest online bookmaker with over 90 million customers globally, had been exploring entry into the Indian market for several years. They had begun accepting Indian players and offering INR deposits via local payment methods.
However, in August 2023 — just weeks after the GST Council's announcement — bet365 ceased operations in India. The reason was straightforward: a 28% tax on the full face value of every bet made it mathematically impossible to operate profitably while offering competitive odds.
The Mathematics of Why It Doesn't Work
| Metric | Without GST | With 28% GST |
|---|---|---|
| Player wagers | ₹1,000 | ₹1,000 |
| GST liability | ₹0 | ₹280 |
| Typical operator margin (7%) | ₹70 | ₹70 |
| Net position | +₹70 profit | -₹210 loss |
With a typical 7% margin on sports betting, an operator would lose ₹210 on every ₹1,000 wagered after GST. No business model can sustain this.
For a detailed look at bet365's history in India and the current alternatives available, see our bet365 India review.
🔄 Alternatives to bet365 in India
Since bet365's exit, Indian bettors have four reliable offshore alternatives, all licensed by the Curaçao Gaming Authority:
Tax on Betting Winnings (Section 194BA)
Separate from the GST on operators, Indian tax law also imposes a 30% Tax Deducted at Source (TDS) on winnings from online gaming. This was introduced via Section 194BA of the Income Tax Act, effective from 1 April 2023.
| Detail | Information |
|---|---|
| Tax Rate | 30% TDS (plus applicable cess and surcharge) |
| Threshold | Net winnings exceeding ₹10,000 per financial year |
| Calculated On | Net winnings (total withdrawals minus total deposits within the financial year) |
| Deduction Method | Deducted at source by the operator at the time of withdrawal |
| ITR Declaration | Must be declared under 'Income from Other Sources' in your Income Tax Return |
| Applies To | All online gaming including sports betting, fantasy sports, casino games and card games |
💡 Practical Implications
- • Domestic operators (like Dream11) automatically deduct 30% TDS when your net winnings cross ₹10,000
- • Offshore operators (Dafabet, 22Bet, etc.) may not deduct TDS — but you are still legally liable to declare and pay tax on net winnings in your ITR
- • Losses cannot be offset — you cannot deduct betting losses from other income sources
- • Keep records of all deposits and withdrawals for tax purposes
- • The effective tax rate can exceed 30% when cess (4% health and education cess) is included, bringing it to approximately 31.2%
Disclaimer: This information is provided for educational purposes only and does not constitute financial or tax advice. Tax laws are subject to change. Consult a qualified chartered accountant or tax professional for advice specific to your situation.
India's GST vs Global Betting Taxes
To put India's 28% GST on full face value into perspective, here's how it compares to betting taxation in other major markets:
| Country | Tax Rate | Applied To | Effective Rate on Wagers |
|---|---|---|---|
| 🇮🇳 India | 28% | Full face value | 28% |
| 🇬🇧 United Kingdom | 21% | GGR (operator profit) | ~1.5–2% |
| 🇦🇺 Australia | 15% | GGR (varies by state) | ~1–1.5% |
| 🇲🇹 Malta | 5% | GGR | ~0.25–0.5% |
| 🇨🇼 Curaçao | 2% | GGR | ~0.1–0.2% |
India's effective tax rate on wagers is 14-280x higher than comparable regulated markets. This is the fundamental reason why the Indian market is dominated by offshore operators licensed in lower-tax jurisdictions like Curaçao.
Frequently Asked Questions
What is the GST rate on online betting in India?
The GST rate on online betting, gaming and gambling in India is 28%. This rate was confirmed by the GST Council in July 2023 and came into effect on 1 October 2023. It applies to the full face value of bets placed, not just the operator's gross gaming revenue (GGR).
Do I have to pay GST when betting on offshore sites like Dafabet or 22Bet?
No. The 28% GST is levied on operators, not directly on players. Offshore betting sites licensed in Curaçao (such as Dafabet, 22Bet, Melbet and Parimatch) operate outside Indian tax jurisdiction and do not charge GST on your bets. However, you are still liable for income tax on your net winnings.
Why did bet365 leave India?
bet365 exited the Indian market in August 2023, shortly after the GST Council announced the 28% tax on full bet value. As a company that sought to operate compliantly within India, bet365 could not absorb or pass on a 28% tax on every rupee wagered and remain commercially viable. The tax made legal domestic operations unviable.
How much tax do I pay on betting winnings in India?
Under Section 194BA of the Income Tax Act, net winnings from online gaming above ₹10,000 per financial year are subject to 30% Tax Deducted at Source (TDS). This is separate from the GST. Operators are required to deduct this before paying out winnings, and you must declare it in your Income Tax Return (ITR).
Is online betting legal in India?
There is no central federal law that explicitly bans online betting. The Public Gambling Act of 1867 predates the internet and does not cover online activities. Individual states have varying regulations, but enforcement against individual players using offshore sites is virtually unheard of. The operators we recommend hold valid Curaçao eGaming licences.
Will the GST rate on betting change in the future?
There is ongoing debate and industry lobbying to reduce the rate or switch to a GGR-based model (taxing operator profit rather than full bet value). However, as of April 2026, the 28% on full face value remains in effect with no confirmed plans to change it. The GST Council reviews rates periodically.
What is the difference between GST on full face value vs GGR?
Full face value means the tax applies to every rupee you wager. For example, if you bet ₹1,000, the GST would be ₹280 on the full amount. GGR (Gross Gaming Revenue) taxation would only tax the operator's profit margin (typically 5-15% of turnover). Most countries with regulated betting use GGR-based taxation, making India's approach unusually aggressive.
Find the Best Betting Sites for India
All our recommended sites are Curaçao-licensed offshore operators that accept INR deposits via UPI, Paytm and more — without the 28% GST burden.
18+ only. Gambling involves risk. Please bet responsibly and never stake more than you can afford to lose. If you feel your gambling is becoming a problem, please seek help from organisations such as BeGambleAware.org.