"Will bring an amendment to GST law to include online gaming and will be taxed at 28 percent on full face value," finance minister Nirmala Sitharaman said after the GST Council meeting.

Currently, services of casinos, horse racing, and online gaming attract 18 per cent GST. The effective date for the GST rate on the full value of online gaming will be rolled out after the amendment of GST law.

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Delta Corp is a gaming and hospitality corporation that owns and operates casinos and hotels under several brands. It is engaged in casino gaming, with the majority of its offshore casinos in Panaji, Goa.

Sudhir Mungantiwar, Maharashtra Forest Cultural and Fisheries Minister, said the council has decided to do away with the distinction of the game of skill and chance in the case of online gaming. Experts from the gaming industry expressed disappointment after the GST meeting announcement, claiming that it could prove to be ''detrimental' to the online gaming industry, and that the chargeability on full value is what is going to hurt the gaming companies to an extent that it may lead to its extinction.

''Introducing a 28 per cent tax rate not only hampers online gaming platforms' capacity to develop new games and technologies but also undermines their competitiveness in the market. Moreover, the constrained financial resources hinder their ability to enter new markets and reach a wider customer base,'' said Aaditya Shah, COO of IndiaPlays.

Meanwhile, the Delta Corp board had announced a final dividend of Re 1.25 per equity share of face value of Re 1 for fiscal 2022-23.

''The board of directors of the company, at its meeting held on 11th April, 2023, recommended payment of final dividend of Re. 1.25 per equity share of the face value of Re. 1 each for the year ended 31st March, 2023. The final dividend will be paid to the members of the company after approval of dividend at the Annual General Meeting of the Company scheduled on Friday, 4th August, 2023,'' said Delta Corp in a regulatory filing to the stock exchanges. 

The company had fixed July 7, 2023 as the record date for the payment of the final dividend. ''In accordance with the provisions of the Income Tax Act, 1961 (IT Act) as amended by and read with the provisions of the Finance Act, 2020, with effect from 1st April 2020, dividend declared and paid by the company is taxable in the hands of its members and the company is required to deduct tax at source from dividend paid to the members at the applicable rates,'' said Delta Corp in a statement to the stock exchanges today.