Shutdowns could affect 35,000 jobs
Indian casino operators have filed a petition to protest the planned spike in gaming-related fees for offshore and onshore gaming halls in the state of Goa. They say they will be forced to shut down operations if the increases take effect.
Chief Secretary Dharmendra Sharma has sent the petition to the state Finance Department, which may reconsider implementing the tax.
The government planned to increase casino license fees by up to 4.5 times, reported Asia Gaming Brief. The order would affect Goa’s six offshore and nine land-based casinos and increase the government take by approximately Rs150 crore (US$23 million) per year.
Other fees would be increased too, including license application fees, transfer license fees, license renewal fees and the non-refundable security deposits required when a new license is granted.
An unnamed senior casino official recently told the Navhind Times the fees are unsustainable. “The casinos are coming under 28 percent goods and service tax bracket. With the fee hike by almost 200 percent to 300 percent it would be difficult to run the business, as average annual turnover of the onshore casinos is between Rs35 crore (US$5.83 million) to 40 crore.”
According to another unidentified operator, “If the state government does not reduce the fees, there will be no option other than shutting down the casino business in the state, which could affect the livelihood of around 35,000 people who have been dependent directly and indirectly on the industry.”
