There’s no doubting the steady increase in the number of Indian citizens gambling online. It’s estimated that around 80% of the country’s population delves into some form of gambling at least once a year. The coronavirus pandemic that forced people to stay home undoubtedly contributed to that statistic.
Physical Gambling in India
Regardless of the pandemic, Indians can only physically visit a casino and gamble in Goa, Sikkim, and Daman. The Public Gambling Act of 1867 is the only law that prohibits gambling, but it doesn’t make any provision for online gambling.
What’s the Deal With Online Gambling?
For the large part, gambling at online casinos lies in a grey area because there aren’t any laws that directly address it. As a result, several offshore casino operators that exist beyond India’s shores identified the loophole in the system and offered Indian players an online casino gaming option.
Multiple sites have tailored their product offering to Indian players purely because of the expansive market in the country. Accepting Rupees for transactions, translating the sites to Hindi, and offering games like Teen Patti and Andar Bahar are some strategies these casinos use to attract Indian gamblers.
Statistics of Gambling in India
Successful planning and execution have worked well, as statistics predict the Indian market surpassing the UK’s number of gamblers per capita. It is expected that India’s gambling audience will increase annually at a rate of 8.59% from 2023 until 2027. There will be approximately 12.17 million online casino users within the country by then, with each user spending an average of US$291.83 or INR 23,000.
Indian Government Concerns and Action
Due to a lack of laws regulating online casinos, the Indian government misses out on US$140 million every year. The financial aspect is simply too promising to ignore. The government is losing revenue by turning away from the online gambling industry.
In addition to the financial benefits to the government, there is genuine concern for the social impact of gambling on Indians. The adverse effects of gambling addiction are becoming prevalent, with stories of suicide becoming a regular occurrence.
Consequently, the Federal government has asked a special task force to draft a new law that addresses these concerns to create a safe, responsible space for Indians to enjoy casino games while also reaping the financial benefits of a legal gambling industry.
The New Law
Earlier this year, the Ministry of Electronics and Information Technology of India published a draft of rules to address the shortcomings of the centuries-old act. Not only would it legalise online gambling and allow casinos to enter the market freely, but it would also enforce responsible gambling policies to protect the citizens of India.
With reports of financial ruin leading to gambling-related suicide, the new laws make it mandatory for casino operators to provide enough tools and avenues that players can access when they think gambling is becoming a problem. Ensuring that these sites carry out the proper Know Your Customer processes also provides the operators and regulators with financial information of each player, understanding their budgetary constraints.
As a result, users can be deactivated from a site if they’re struggling to keep their heads above water financially and creating debt purely to enjoy gambling.
However, the ultimate winner is the Indian government. With the 28% tax it imposed on gaming companies from October last year, they would have collected approximately INR 75 billion, an increase of INR 16 billion from the previous year.
According to Revenue Secretary Sanjay Malhotra, the government is expecting INR 140 billion ($1.7 billion) in goods and services tax (GST) by the next financial year.
Putting Tax Revenue to Good Use
While it’s good news that India will reap the benefits from the online gaming industry, it’s a shame that the tax percentage is more than a quarter. As Indian gamblers, there’s a hope that the revenue collected by the government will be put to good use, but that remains to be seen.
It is good news that the industry is regulated and there is a degree of protection from the government. As a result, offshore casinos must abide by specific regulations as opposed to making them up for the Indian market.
Hello, I’m Kapil Kumar, a seasoned SEO expert and blogger at WinnersList.in. My mission is to spotlight exceptional individuals and organizations across various domains. Through curated lists, profiles, and inspiring stories, I aim to celebrate outstanding achievements and inspire the next generation of champions. Join me in this journey.
