Super Group has disclosed the immediate cessation of all activities within the Indian market, citing changes to the country’s Goods and Services Tax.
The parent company of the Betway and Spin brands noted that the decision was implemented from October 1, 2023, adding that the new rules make the region “no longer commercially viable”.
Earlier in the year, India’s Parliament gave approval for the Goods and Services Tax Council to amend tax rates applied to companies deemed to be providing gambling services, regardless of domicile.
The approval saw the GST apply a 28 per cent turnover tax on all services for online gambling, land-based casinos and horse racing.
The GST Council, comprising the Union Finance Minister and delegates from every state and union territory in India, holds the authority to determine tax rates, exemptions, and administrative processes.
Despite this exit, the online casino and sports betting operator has also reaffirmed the full-year projections as disclosed on a second quarter earnings call.
Super Group is expected to reach revenue, excluding the US, of €1.35bn through 2023, taking into consideration the volatility of sportsbook margins and currency fluctuations in certain key markets.
It is anticipated that EBITDA, excluding the US, will reach €240m, accounting for incremental marketing spend through the second half of the year, which the company said is “making up for the lower spend” during the first six months of the year.
Neal Menashe, Chief Executive Officer of Super Group, stated: “We are continuously evaluating evolving regulatory landscapes across the many markets we serve.
“Informed by years of operating our geographically diverse business, we remain confident about the long-term growth opportunities in front of us.”
