The proposed move by the Goods and Services Tax (GST) Council to impose a steep 40 per cent GST on casinos threat ens to cripple the industry and deliver a severe blow to Goa’s tourism sector — where casinos serve as a major attraction for domestic and international tourists alike
Amit Garg, Chief Executive Officer of Big Daddy Casino, one of the major players in the sector, minced no words: “Yes, 40 per cent GST on casinos and gaming will cripple the casino business. The proposed hike is detrimental, and there will certainly be a decline in casino visitors, which will ultimately result in a drop in overall tourist arrivals to Goa. We are awaiting the formal government notification, after which we will be forced to revise entry fees and rates of var ious games.” The GST Council’s revised tax structure, termed GST 2.0, was proposed on September 3 and is expected to come into effect from September 22, pending official notification. Industry insiders are already bracing for the fallout, with predictions of sharp revenue declines and a downturn in domestic tourism. Operators argue that the higher tax burden will not only make casino gaming unaffordable for many patrons but will also erode the premium experiences that currently differentiate Goa’s gaming industry — such as fine dining, premium alcohol, and live entertainment. While the debate around casinos — whether a boon or bane — continues, the six off-shore casinos on the River Mandovi have undeniably become a fixture of Goa’s night life and a key draw for visitors. The 24-hour operations contribute significantly to the capital city’s vibrant tour ism economy, even as the State government earns between ₹350 to ₹600 crore annually from both onshore and off shore casino operations. Casino operators believe the tax hike — a jump from the existing 28% to 40% — could act as a deterrent to visitors. One operator, speaking on condition of anonymity, con firmed that entry fees and game tariffs have not yet been adjusted, but said, “Once the notification is issued, we’ll have to reconsider our pricing structure — which may un fortunately mean passing on the costs to patrons.” A hotelier warned of the broader consequences: “There will be a drastic drop in footfalls from other States and abroad if the cost of gaming shoots up due to 40 per cent GST. We’ll have to see how this plays out, but the signs are worrying.” Industry stakeholders fear that the move could not only discourage new investment in Goa’s casino sector but also prompt patrons to explore more affordable gambling des tinations like Sri Lanka. As margins are squeezed, services could be scaled back — from luxury buffets to entertain ment offerings — affecting the overall experience and ap peal. More worryingly, the impact may ripple across sectors closely tied to the casino economy. Potential downsizing by casino operators could affect thousands of jobs, from gaming staff to service personnel. Taxi operators, small shopkeepers, and even hotels dependent on casino-driven footfall could suffer a business slump. Over the last five years, the State exchequer has earned more than ₹1,660 crore from casino fees. Whether the casino lobby can influence a policy rethink at the Centre remains uncertain, but what is clear is this: a 40 per cent GST could upend the current equilibrium, putting both Goa’s casino business and its tourism sector at risk.