Daijiworld Media Network- Panaji

Panaji, Sep 5: Goa’s casino industry has raised alarm over the GST Council’s decision to levy 40% tax on casinos, warning that the move could cripple the sector, deter investment and threaten the livelihoods of thousands of people dependent on the business.

Casinos, which earlier fell under the 28% GST slab, have now been clubbed with “sin goods” and demerit items in the new tax regime.

“Casinos have been vital to Goa’s economy for more than two decades. They attract tourists from across India and abroad, and indirectly support airlines, hotels, taxis and restaurants. A 40% GST will not only reduce footfall but also jeopardize employment, slash state revenue and wipe out past investments,” said Jaydev Mody, chairman of Delta Corp Limited, the largest operator of casinos in the state.

Goa currently has six offshore casinos on the Mandovi River and more than a dozen land-based ones in five-star hotels. These have become a cornerstone of the state’s tourism industry, contributing significantly to its revenue.

Mody said Delta Corp has put on hold its Rs 2,000–2,500 crore integrated resort-cum-township project at Dhargal in Pernem, which was expected to generate 10,000 jobs, citing lack of clarity over retrospective tax demands and the fresh hike.

“I don’t understand why the government labels casinos as ‘sin goods’. They are legally permitted only in Goa and Sikkim, both tourism-driven states. Instead of penalising the sector, the government should recognise its contribution to development and employment,” Mody stated.

The industry fears that if the tax burden is not eased, it could lead to a decline in Goa’s tourist inflow, hurting not only casinos but also the wider tourism ecosystem.