The amendment to the Indian Goods and Services tax requires gaming operators and providers to pay a 28% turnover tax on customer wagers.
Previously, operators were subject to an 18% tax on the commissions they collect from customers.
“The newly effective tax rules make the Indian market no longer commercially viable for Super Group,” said the New York-listed operator in a statement.CEO Neal Menashe added: “We are continuously evaluating evolving regulatory landscapes across the many markets we serve.
“Informed by years of operating our geographically diverse business, we remain confident about the long-term growth opportunities in front of us.”
Despite the withdrawal, Super Group has reiterated previous revenue guidance of €1.35bn for full-year 2023.
According to the Financial Times, India’s tax authorities have chased fantasy sports and gaming companies for hundreds of millions of dollars in back taxes.
This has resulted in a regulatory stand-off, with major fantasy operators such as Dream11 and Gameskraft lodging legal challenges against the order.
Gaming companies have won a series of court judgments in India over recent years after their services were deemed to be skill-based rather than games of chance.