Super Group has announced the suspension of all services in the Indian market, citing changes to the Indian Goods and Services Tax (GST) as the reason for its decision. Effective October 1, 2023, the newly implemented tax rules have rendered the Indian market commercially unviable for Super Group. Despite this development, the company has reaffirmed its full-year financial projections, as previously disclosed during an earnings conference call in August 2023.
Impact of GST on Gambling:
India recently introduced a 28% GST on gambling, affecting various sectors such as online gaming, horseracing, and casinos. This decision was made during the 50th meeting of the council, where additional changes were also enacted, including a reduction in tax on food and drinks served in cinemas from 18% to 5%. Certain pharmaceutical products were granted exemptions from the tax increase.
Government’s Efforts to Control Gambling:
The Indian government’s decision to raise the GST on gambling services reflects its heightened efforts to regulate and control the gambling industry within the country. The Ministry of Information and Broadcasting issued an advisory paper, urging the immediate cessation of all advertisements promoting gambling products across all platforms.
Research on Indian Gambling Behavior:
In a separate development, ENV Media partnered with Indian research firm Ken Research to conduct surveys and case studies analyzing Indian gambling behavior. These reports will cover a wide range of topics related to player behavior and the demand for gambling services in India.
CEO’s Perspective:
Neal Menashe, CEO of Super Group, emphasized the company’s commitment to continuously assess evolving regulatory landscapes in the various markets it serves. He expressed confidence in the long-term growth opportunities ahead, despite the challenges posed by regulatory changes.
Super Group’s decision to cease operations in the Indian market due to the impact of GST changes highlights the evolving regulatory environment for the gambling industry in India. As the government takes steps to exert greater control over gambling-related services, companies like Super Group are navigating complex challenges. However, the company remains optimistic about its growth prospects in other markets while monitoring regulatory developments worldwide.