In a judgment with profound implications for the gaming industry, the Supreme Court on Wednesday upheld the constitutional validity of the Centre’s retrospective levy of 28% Goods and Services Tax (GST) on the full face value of bets placed on online gaming platforms, instead of gross gaming revenue alone. A bench comprising Justices J.B. Pardiwala and R. Mahadevan ruled that online gaming activities involving monetary stakes give rise to actionable claims and constitute taxable supplies under the Central Goods and Services Tax Act, 2017. The court held that the essential character of betting and gambling depends on the existence of stakes placed on uncertain future contingencies, and not exclusively on whether the underlying activity is a game of skill or chance. According to many tax experts and analysts, the ruling would revive huge tax demands like a Rs 21,000 crore notice on Gameskraft; industry-wide past tax liabilities validated by the judgment could total Rs 2.5 lakh crore, including interest and penalty. They said it also implies that gaming companies will pay GST at 40% starting in September 2025.