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From April 1, 2023, online game winnings in India will attract a 30% tax deduction at source (TDS). Supporters of the tax argue that it will generate revenue for the government and promote responsible gaming. The entry fee, however, has been excluded. Therefore, TDC is applicable on net winnings. It has the largest fantasy sports market, with the fastest growing percentage of new paying users in the world. The gaming industry in India is expected to grow by 20-30% in FY2023 and is expected to reach USD 4. Gamers may choose to move to offshore gaming platforms where they can avoid the tax, leading to a loss of revenue for the government. The government must strike a balance between generating revenue and promoting growth in the industry.

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