Super Group quits India following tax rise

Shares in Super Group closed 2.7 per cent lower in New York Monday after the company announced its withdrawal from the Indian online gaming market.

The company attributed the market withdrawal to the introduction of India’s new gaming tax on 1 October, adding that the move is unlikely to affect its full year financial projections.

“We are continuously evaluating evolving regulatory landscapes across the many markets we serve,” said Super Group chief executive Neal Menashe. “Informed by years of operating our geographically diverse business, we remain confident about the long-term growth opportunities in front of us.”

The new tax rate of 28 per cent was adopted by the GST Council of the Ministry of Finance on 2 August and came into force on Sunday.

It is payable by all domestic and foreign lottery, betting and gaming operators and is applied to the total value of deposits with an operator, as opposed to an operator’s gross gaming revenue.

There is an ongoing debate in India about the application of the goods and services tax (GST) and whether it should apply to deposits or revenue, with Indian gaming operator Delta Corp the latest to find itself embroiled in a dispute with tax authorities.

Shares in Super Group Ltd. (NYSE:SGHC) closed 2.70 per cent lower at $3.60 per share in New York Monday.