India, May 31 -- Death by a thousand cuts. That's perhaps the most fitting way to describe the state of India's real-money gaming (RMG) industry today.

First came the regulatory crackdowns that pushed the sector to the brink of extinction. Now comes the Supreme Court's decision to uphold the retrospective application of the 28% GST levy. For companies already running on life support, the Supreme Court's ruling could well be the final nail in the coffin.

Still, the outcome could go one of two ways. First, the industry could endure another painful phase of litigation and emerge smaller, leaner and consolidated. If not, the weight of retrospective tax demands running into thousands of crores could prove insurmountable, forcing a majority t...