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Gst 40% : Is Horse Racing Facing Closure Risk?

By Come On | 04-Sep-2025

Hi Friends,

    The new GST rates with only two slabs of 5% and 18% seem to have come as a bolt from the blue for large sections of people but the creation of a new 40% tax category for lottery, online gaming and gambling has come as a rude shock to thousands of people depending upon these industries for their very survival.

    From 12% to 28% in 2020 and now to 40% is certainly a serious blow to all those who have been expecting some kind of a mercy from the concerned ministry particularly in the backdrop of 'horse racing is a sport' ruling by the apex Court years before.

     The options appear to be very few but it doesn't threaten to the extent of closing the racing industry. Of course, the State of Kerala which registers a sale of rs.14,000 crores worth lottery tickets to earn a net profit of rs.3,000 crores annually that takes care of a majority of the welfare measures in the state appears to be in deep trouble. However, Indian racing is not so.

     I, as one among many, believe that the race clubs will successfully evolve a fresh strategy to withstand the onslaught and move ahead successfully. No doubt, the entry fee will be further enhanced substantially and the bookmakers will be left with no other option than charge more for the 'illegal' bets in place of the present 10% tax. The official tax, needless to say, will skyrocket and the totes will dry up further.

Still, horse racing will go on because you and I want it.

Post Your reply

24 Replies

Mr Perfect said ...

05-Sep-2025

40% gst means tote collection will go down towards nill.

But bookmakers might increase 10% to 12% as in kolkata.racing through bookmakers and unregistered bookies will increase.But without JP ,tanala ,shp ,thp,forecast ,triple the charm of skill based bets and betors  will be over.

Racing in india is moving towards extinction.

Ashokkumar said ...

04-Sep-2025

Hopefully excepted 8% surprised 40%

It's very bad to the racing industry 

All race owners can approach and submit their grievance 

Out off 100 Rs earned 60% will go to the tax anything left out 

Very  very bad to the horse racing 

Hope madem will consider 

Regards

Dhrubo said ...

04-Sep-2025

Beyond any percentage heartbroken punters will keep thronging the course with hope floating

Ramiyer said ...

04-Sep-2025

One of the wors finance minister ever seen after independent india. FM is thinking by increasing the GST they may get good revenue or double revenue. She should increase to 100 GST in all commodities. Like a mad man increased tariff on india he hopes the revenue will be 200 percent more. But India has other ideas led by our PM. Now it will boomerang to him. 

It is high time PM should intervene into financial ministries blunders. Sooner we can expect GST on using public toilets including train and flights airports. She may be planning to out GST on vegetables also except popcorn. Which she likes to eat 

Coming yo the racing industry turf club cannot survive without tote punters. Because those who play with the bookies inside the club has to pay 40 oercent. Atlease bookies has to show 30 percent of the business daily has to pay 40 percent. The rest half tax .10 percent etc. Orelse their stalls will be raided. Out of the race course lot many prople bet in whats up group with bookies for no tax or half taxes .That aso will not go te exchequer. How long can turf club continue the show. Very bleak.Already calcutta. Bangalore.pune are struggling to frame a days card of 6 races with single digit runners. I dont think they will get revenue from the sponsers who may take a back seat in coming days.online bettngs games banned. But number of betting sites are operational now . In fact it has increased. Tutf club feared most and all club closed thrir online platform. They should have collectively gone to the court. Thry are not conducting rumy.casinos  lottery inside the race course. All turf clubs should stop racing temporariy and put their wors infront of the govt even galvanising all the workers including trainer owners jockies.jamaidars etc to Delhi to show teir strengths and points.

Precisely_that said ...

04-Sep-2025

It's a high time all clubs in the country keep their egos and ambitions aside and function under one umbrella. They make a common submission to the central government and state governments in states which conduct racing. Someone has to sit and explain the finance minister how does racing work? How many people are dependent on the industry? How do such impositions encourage illegal betting? What are cost involved for an owner and compared stake money? How does stall fees and GST paid by bookmakers generate huge revenue? How are employees dependent on bookmakers jobs getting affected by this?

If at all the finance minister understands the pain the racing can survive. Otherwise she is kind of person who says "main allo kanda nahi khati so I don't know the rates". Hope she doesn't say main racing nahi karti, so I don't care. 

Horsecrazy said ...

04-Sep-2025

People managing the clubs are to be blamed. We need a person like Lalit Modi to revive this industry. If all around the worild racing is flourishing and governments are earning enormous money why cant this be possible here? One person with right skills can turn things around like what happened to cricket where all the stake holders, most importantly the players are making money because of skills and vision of one man.

Chikonda Sheyker said ...

04-Sep-2025

It won't effect horse racing 

There are many ways to play not giving 40% tax

Inside Informer said ...

04-Sep-2025

Who cares 28% or 40% 

We bet at 10% or net that's it

Godzilla - The - Goli Master said ...

04-Sep-2025

GST Of 40 % Will See BOOKIES HAPPY : They Will As Always Do Half Tax * * * Only To Suffer Are Small PUNTERS * * Those Going For

JACKPOT : TREBLE : : TANALA : : EXCATA & So * * * * 

Business With CLUB Will Go Down Rapidly :

 

M Ramesh Kamath said ...

04-Sep-2025

Except online bets, other transactions will move to underground. The tax collection will be less than what it is now.

Larry said ...

04-Sep-2025

It's left for the higher ups in the racing industry to fight this out, because, 40% tax is truly the final nail in the coffin for the racing industry.

Our Turf authority has already taken a foolish decision by stopping online bets, because the ban was on RMGs, Real Money Gaming, and I feel it did not apply to racing, because, if the only criteria to stop it was that payments made online, to speculate, and win/lose in the bargain was banned, why didn't stock market apps not cease operations, they too fall under the same criteria, so I feel TAI took a hasty step, and if the gaming bill is not scrapped, we all suffer due to this folly, which actually was not needed. That's what I feel about it, the way I look at the scenario.

Indians, now on, live your lives the way it is dictated, and thrust upon you, you don't have a right to live your lives the way you wish henceforth, that's what our dear government wants to convey to us. 

Kukku Tilak said ...

04-Sep-2025

This decision will severely impact an already struggling sport and risks pushing horse racing towards extinction in India. While taxing a so-called "sin" activity earns the government easy brownie points, and the lure of reclaiming prime real estate may appeal to political parties, the real cost will be borne by the people whose livelihoods depend on racing.

The concern is grave. Thousands of people—jockeys, trainers, stable hands, bookmakers, hospitality staff, and countless others in ancillary trades—stand to lose their only source of income. Most of them already struggle to make ends meet and would find it extremely difficult to transition into alternate careers. This humanitarian angle is the only genuine and empathetic ground for appeal to the government.

What is needed is not a blanket taxation on gross collections, but a fair and workable structure. Racing clubs merely provide a platform and charge a service fee for that. Logically and justly, GST should be levied on the platform/service charge—not on the total betting pool. Supporting the Government decision to tax at a higher rate but seeking fairness in application is probably the only appeal that may provide a lifeline. 

A practical solution could be to GUARANTEE the government a  higher collections under a fairer base: for example, racing clubs could commit to delivering 15% higher GST collections in the first year, 30% higher in the second, and 50% higher in the third compared to the natural base. This would align with the government’s objective of higher tax revenues while ensuring the industry’s survival—a true WIN-WIN-WIN.

Ayyarnet said ...

04-Sep-2025

Indeed unfortunate that GST for Horse race betting increased ti 40 percent from 22/9/2025

Our clubs should take necessary legal reprsentation  to get the Horse Races sepated from other Gaming categories since it is as a game of skill and NOT a CHANCE.

Regards

Ayuarnet

 

Sekharhyd said ...

04-Sep-2025

GST on horse racing 40%from Sep 22 ,!,!!

No more racing .We have to wait for change of Government .

 

Pure Class said ...

04-Sep-2025

Whether lottery tickets, betting, gambling, horse racing, and casinos attract GST at the rate of 40%?

Yes, for all specified actionable claims including betting, casinos, gambling, horse racing, lottery and online money gaming, GST rate of 40% will apply.

 

Vijayakumarvn said ...

04-Sep-2025

As it is Racing is getting good tax, 40% will be heartless decision 

Desertgod said ...

04-Sep-2025

Kings come and go, and rules keep changing with time. But one thing remains constant - a well established ecosystem doesnt just disappear. So instead of being pessimistic, you people especially owners and trainers stay positive and act with purpose. An industry built on strong foundations will always find a way to thrive.

Againstodds said ...

04-Sep-2025

Sir, they have a wrong notion that higher the tax, higher the collection of revenue.. But that will not happen,  

Ashok Deb Chowdhury said ...

04-Sep-2025

Racing will be more competitive now onwards..... On money favourites will be history..... In most of the races the FAVOURITE will be available at more than 2.5.... the second one at 3.75..... and a couple at .... 6/1....7/1....8/1....

And in every fifth race there will be a winner in longer odds.....

So no need to raise the 10-12 percent from the BOOKIES end for the so called CASH betting.....

..... And the RACE continues.... 99.99% punters will loose as usual.... The money initially goes to the BOOKIES.... From there the agents of big owners will take 95% of the money from the BOOKIES....

.... So FINALLY.... A few owners.... A few trainers.... A few Jockeys..... And a few bookies.....will grow bigger and bigger.....

Rest (punters, owners, trainers, jockeys and bookies....) will ONLY fill the huge pot for the said people....

The clubs will survive.... Even if there is no TOTE....and even entry fee is free of cost......because of the sponsors, the studds and from the TABLE RACES....and other interests of the officials of the CLUBS....

So don't worry.... Indian horse racing will go on .....with more money.... With more avenues....!!!!!

Drams said ...

04-Sep-2025

GST on horse racing, betting will go upto 40 percent from September 22,2025. Is this the final nail on the coffin ?

 

Race Professor said ...

04-Sep-2025

Disaster is imminent, and once it arrives, many people will have to take extra risks. To achieve higher returns, they must invest more, which is risky. Importantly, this will affect hot Favourite races which has 30 or 40 Paisa horse.

Munesh said ...

04-Sep-2025

Forgot to add 

The ruling elite must digest the  old saying that 

"Man cannot live on bread alone"

Munesh said ...

04-Sep-2025

Racing, like cricket and other games is a big mental relief from day to day headaches and hectic life styles.When the government boasts of catching up with the devloped countries there must be some space for entertainment also.None of the so called developed countries are heavily taxing the entertainment segment.

C. R. Dass said ...

04-Sep-2025

No more racing in India. RIP.