With an unregulated market, India is said to be foregoing huge amounts of tax revenues every year. India has a gargantuan gambling market, that many see its slow action on the calls for legalization and regulation as a critical missed opportunity.
Calls for broad legalization
According to India Casino Info, India’s government has been welcoming Indian gambling players. Unfortunately, this attitude has not translated to unambiguous legislation that supports the gambling industry in the whole country. When it comes to online gambling, in particular, no resolution has been passed by the Federal government yet. Regulation is left to the discretion of the state governments.
The lack of a solid central law on gambling in India is said to bring about more disadvantages than advantages. While some may say that they are able to operate online casinos in the country without intervention because of the lack of clear laws on online casinos, others argue that the country is losing big on potential revenues. There are strong calls to bring to the surface the underground gambling industry of India, which is said to be around half of the country’s total gambling market
The massive Indian gambling market
India’s gambling market is estimated to be worth 67.2 trillion rupees, according to a 2020 report by Maple Capital Advisors. The market is expected to grow by 41% as the country recovers from the pandemic. Between 2014 and 2020, the market’s CAGR was determined to be around 22%.
These are impressive numbers that would have translated to more money for India as it addresses the pandemic and rebuilds its economy. However, gambling policies in the country are not as clear and enticing for investors. Many investors have flocked to India’s gambling market, but there could have been more if it had a better legal framework or regulation.
Moreover, India is said to have lost more than 10 billion rupees in tax revenues in 2020 because of the lack of online gambling regulation. In 2021, this loss will amount to 14.2 billion rupees and nearly 40 billion rupees by 2024. These are national income that could have been spent to build more infrastructure in the country or support healthcare services.
These projections are based on a 15% tax rate. If the government aggressively pursues legalization and increases taxation to 30%, the country can generate revenues of up to 80 billion rupees in 2024.
The lost revenues are reportedly mostly going overseas because of India’s poor regulation. The government does not prohibit offshore online casinos from serving Indian gamblers. However, it does not strictly go after these non-Indian companies to collect taxes and license fees.
There are many compelling reasons why many are advocating for the legalization and regulation of online gambling in India. The country already allows online casinos on its land, so it does not make sense why it is not actively pursuing regulation not only to collect tax revenues but also to protect Indian players. (UNI)
