Throughout India's history, gambling has become a part of society. Whether it's playing card games to please the Goddess of Wealth Lakshmi during Diwali or betting on the IPL online, Indians have a strong appetite for sports and casino games, and players love cricket odds at places like SikkimBet.
Throughout India's history, gambling has become a part of the culture. Whether it's playing card games to please the Goddess of Riches Lakshmi during Diwali or betting on the IPL online, Indians have a strong appetite for sports and casino games, and players love cricket odds at places like SikkimBet.
They're so strong that even India's muddled gaming laws don't stop them from betting. If it's a game of chance or talent, cricket betting, football betting, or just playing online poker, Indians have the means to do it and are doing it in full force. And here's the kicker: it's just largely uncontrolled.
For the time being, no specific laws or regulations are governing online gaming in India. It is largely unregulated, with the bulk of it taking place underground.
Although this is great for Indian players who can earn money and grow their income, what about the government and authorities losing out on tax revenue? What about the unspoken, unintentional effects of this huge financial betting bubble on India's GDP? Let's take a closer look.
Exceptional Tax Potential
According to a KPMG study on sports gambling in India released in March 2019, the Indian sports betting industry is worth upwards of $130 billion, which was not the case just a few years earlier. By now, the figure is estimated to be in the region of Rs. 15 lakh crore.
According to some estimates, India's betting and gaming revenue accounted for around 7.5 per cent of its GDP in 2016.
Let's take a moment to consider what this would entail in terms of taxes. A flat 30% tax on all gambling winnings could pull in lakhs of crores for the government to invest as it sees fit. Imagine getting some backup plan in situations like the Covid-19, where sales are down on all fronts.
But that's not all: by regulating and charging sports betting and gaming, you're getting people out of the unregulated, illicit markets and into the organized fold, where their privacy and desires are covered. Furthermore, policing will aid in the prevention of black money, money laundering, and sports corruption.
Not to mention the increased interest in professional competitions after betting is allowed. It would have a cascading impact, benefiting broadcasters, sports franchises, competitions, and even audiences.
So, what are the options?
There are already regulations in place that levy gaming winnings at a flat rate of 31.2 per cent, including cess. However, without a corresponding regulatory system surrounding the practice, it could be not easy to realize its full potential. India should learn a lot from countries like the United Kingdom, Australia, and Italy, where betting is unwittingly tied to GDP.
A well-structured, well-planned regulatory system around online gaming has aided these regimes in and tax collections while still safeguarding customers' interests. Thanks to the tight KYC criteria set by best betting sites, India is already halfway there. Now it's up to the authorities to clear the way.
