- Flutter, the owner of PokerStars, is confident to navigate the new 28% tax rate on deposits for online gaming in India.
- The new tax rate, effective from October 1, 2023, applies to real money betting, irrespective of skill or chance.
- India is a significant market for Flutter, with ownership in key gaming platforms like Junglee Games and PokerStars India.
- Flutter recently increased its shareholding in Junglee Games to 84.8%, a platform with an estimated user base of 100 million.
- Flutter’s operations in India have seen robust growth, with Junglee reporting 54% revenue growth in the first half of the year.
- Despite India contributing 5% to Flutter’s international revenue in H1 2023, the company feels prepared for the tax regulatory changes.
“Our scale and geographic diversification mean that we are exceptionally well positioned to navigate industry and regulatory changes across our markets such as the recently proposed tax changes in India”
In its half-yearly financials for 2023, international gaming giant Flutter — the owner of PokerStars and several other gaming brands — expressed confidence in being “well positioned” to adapt to the impending tax reforms in India.
Flutter’s recent communication effectively addresses the pivotal alterations in tax regulations. On August 11, the Indian Parliament took a significant step by passing a bill to enforce a new tax rate of 28% on deposits made by players into real-money online gaming platforms. The bill was signed by India’s president on August 18.
This substantial tax shift is scheduled to be enforced on October 1, 2023, with a promise of a review six months thereafter to gauge its impact and efficacy. Notably, the 28% tax rate will apply exclusively to real money betting, irrespective of whether the games involve skill or chance.
“Our scale and geographic diversification mean that we are exceptionally well positioned to navigate industry and regulatory changes across our markets such as the recently proposed tax changes in India,” Flutter issued a statement as part of the company’s announcement of its 2023 Interim results, just two days before the new tax rate was approved.
