Regulatory setbacks push gaming firms towards diversification, overseas expansion
India’s leading gaming companies are ramping up investments in e-sports, game publishing, digital entertainment and international markets as regulatory and tax pressures continue to reshape the domestic online gaming industry.
The recent Supreme Court verdict upholding the government’s decision to levy 28% GST on the full face value of bets has emerged as the latest setback for the sector, which had already been hit by the government’s move to ban real-money online gaming in 2025. Industry estimates suggest the sector’s total tax liabilities could exceed Rs 2 lakh crore, including pending tax demands, penalties and interest.
