Negative impactCompany
Bengaluru gamer lost ₹28 lakh after betting ₹2.6 crore—Why ITAT rejected tax on ₹2.33 crore winnings
Mint 1 hr ago·6 Sept 2026, 1:13 pm
A recent tax tribunal ruling has clarified that gambling winnings are not taxable income, a decision that impacts players who suffer a net loss. The case involved a Bengaluru-based gamer who invested over ₹2.6 crore into online rummy and poker but ultimately ended up with a net loss of roughly ₹28 lakh. The tribunal rejected the tax department's claim, ruling that the winnings should not be taxed because the player did not end up with a profit.
This ruling matters to investors and players because it reinforces the legal stance that gambling is a business activity where losses can be offset against gains. For the individual, it means their net loss is not subject to tax. For the broader market, it highlights the evolving regulatory landscape around online gaming and betting, where courts are increasingly scrutinizing the distinction between skill-based games and pure gambling.
Moving forward, investors should watch for how the tax department responds to this specific ruling. If the department appeals, it could set a new precedent. Additionally, the ruling may influence how online gaming companies structure their operations and communicate their business models to regulators and investors.
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