No double tax if casino, e-game winnings are used for fresh bets

The Central Board of Indirect Taxes and Customs (CBIC) Wednesday clarified that earnings from bets in casinos and online gaming will not face any repeated taxation if they do not withdraw the winning amount and use it in new game.

The clarification on valuation of actionable claims stated that in case the amount received by a player by winning in any event, including game, scheme, competition or any other activity or process, is used for playing a further event without withdrawing, shall not be considered as the amount paid to or deposited with the supplier by or on behalf of the said player.

However, in case the player gets the amount deposited by the gaming company or casinos refunded for any reason, it will be taxed and not be deducted from the value of the supply of actionable claims.


"The value of supply of online gaming, including actionable claims involved in online money gaming, shall be the total amount paid or payable to or deposited with the supplier by way of money or money's worth, including virtual digital assets, by or on behalf of the player," said the notification.