Taxes to be levied on casinos, horse racing and online gaming: IT-BT Minister Priyank Kharge
Belagavi: IT Minister Priyank Kharge declared in the Karnataka Legislative Assembly on Wednesday the imposition of the Karnataka Goods and Services Tax (Second Amendment) Bill-2023 to levy taxes on casinos, horse racing and online gaming.
The GST Council Ministry had said on August 11 that amendments in the Goods and Services Tax Act-2017 will be implemented from October 1 of the current year. It had also stressed on the need to make necessary amendments in the Act prior to the implementation.
As the matter of extreme urgency and neither of the Houses of the Karnataka Legislature was in session, the Karnataka Goods and Services Tax (Amendment) Ordinance-2023 was enacted to achieve this. The amendments under the Ordinance would not affect other legal provisions currently in force that provide for the prohibition, restriction or regulation on betting, casino, gambling, horse racing, lottery or online gaming, the ministry clarified.
It added that, in spite of this, imposition of tax on casinos, horse racing and online gaming would not regularize the business. Any illegal act committed in the business would not be immune to criminal action, as the new Bill is a replacement for the Ordinance.
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Shashi Tharoor calls for regulation and taxation instead of banning online gaming
New Delhi(PTI): Congress leader Shashi Tharoor on Wednesday criticised the government’s move to ban online money gaming, warning that such a step would only push the industry underground and strengthen criminal networks.
He also said he had not studied the three Constitution amendment bills seeking to provide a framework for the removal of prime ministers, Union ministers, chief ministers and state ministers detained on serious criminal charges in any detail.
“On the face of it, it is difficult to say it has any problem, but obviously if anyone does something wrong they should not be a minister anyway. I don’t know if there is any other motive,” he remarked.
Discussing the bill seeking to prohibit and regulate online gaming introduced in the Lok Sabha, he said, "I had written a very long article on the argument that by banning online gaming we are simply driving it underground, whereas it could be a useful source of revenue for the government if we legalise it, regulate it and tax it."
He added that many countries have studied the issue in detail and concluded that regulation and taxation can generate funds for social causes, while bans merely enrich “criminal mafias”.
In a post on X, Tharoor recalled that he had “gone on record in 2018 urging the government to legalise, regulate and tax online gaming, rather than drive it underground by banning it, which will merely enhance the profits of the mafia”.
“It’s a pity that the government seems to have derived no lessons from the experience of other countries that have considered this issue,” he wrote.
He added that the bill should at least have been referred to a parliamentary committee “to consider all the pros and cons before rushing it into law”.
The proposed bill prohibits online money gaming and its advertisements, prescribing imprisonment or fines, or both, for violators. It differentiates such games from eSports and online social games, while calling for their promotion.
1/2 I went on record in 2018 urging the government to legalise, regulate and tax online gaming, rather than drive it underground by banning it, which will merely enhance the profits of the mafia. https://t.co/KYi2aTxDQQ
— Shashi Tharoor (@ShashiTharoor) August 20, 2025
