THIRUVANANTHAPURAM: With the governor signing an ordinance to levy 28% tax on online cash games, gambling and betting, these games have become legal in Kerala now. The Home and Law Departments had recommended legislation to ban online gaming, which has led to 30 suicides and left thousands in debt. The Chief Minister had also said this in the Assembly. The GST Council had proposed to levy the tax as there is about half a lakh crore rupees worth of transactions every year.
Registration is mandatory even when abroad. The transaction will be treated as a digital asset and taxed. The creation, running of the game and the transfer of money, including from abroad, will be taxed. The government had banned gaming in 2021, but the High Court overturned it on the petition of gaming companies. The government's appeal is pending. The Home and Law Departments recommended amendments to the law to override the verdict. Online lottery was banned through the amendment of the law.
Those who lost their lives range from an ISRO contract employee to a 14-year-old from Thrissur. The ones who lost crores by playing the game even include officials who manipulated treasury and bank deposits. A Punjab National Bank official had siphoned off Rs 8 crore from Kozhikode Corporation's account for gambling.
Sets trap to siphon money
Those who took their own lives
Online Games Industry in India Expected Revenue in 2026: Rs. 56,995 crore
5 crore people play the game for up to 8 hours a week