India's tax authorities have cut principal GST demands against three online gaming operators. Claims against Sporta Technologies (Dream11), Gameskraft Technologies and Play Games24x7 fell to INR173 billion ($1.8 billion) from INR702.1 billion ($7.4 billion). The reduction is INR529.2 billion ($5.6 billion), or 75%.
What changed in the calculation
The revision follows a Supreme Court ruling on 27 May 2026. The court upheld retrospective taxation of online money games and required deposit-based valuation for pending demands. Winnings that a player re-bets without withdrawing are not treated as a fresh deposit. In the Gameskraft case, tax authorities used confirmed player deposits instead of total buy-ins, where winnings had been counted again in later games.
Liability remains
The cut does not clear the debt. Confirmed principal tax amounts exclude interest and penalties. Gameskraft and Play Games24x7 received penalties equal to the confirmed tax, and sums already paid were set off against the demands. The orders cover historical liabilities and came after India passed the Promotion and Regulation of Online Gaming Act in August 2025, which bans online money games. Operators and affiliates still holding Indian traffic face legal risk that has not gone away: the legal money gaming market is closed, while tax disputes run on turnover from past years. Even the reduced tax, with interest and penalties, remains significant.
