High taxes and bans drive growth surge in illegal online gambling in India

Curious about the current state of online gambling in India and how the surge in illegal activities is shaping the local cryptocurrency market?

A new research report predicts that the illegal betting and gambling market in India is poised for a significant expansion.

Despite legal restrictions, this market segment grew at an impressive 7% CAGR from 2012 to 2018.

Discover why inadequate legislation, selective bans, and high taxes on legal platforms are fueling a 30% growth in India’s illegal betting industry.

Inadequate laws and inconsistent enforcement create a favorable climate for illicit betting platforms.

The Allure of Tax Loopholes in Online Betting

New tax rules mandate a 28% levy on winnings from legal gaming platforms, driving consumers towards unregulated sites that falsely promise tax exemptions.

Illegal operators exploit these tax loopholes to lure participants with enticing offers.

Legal online gaming companies reportedly generated INR 3,500 crores in revenue during the last quarter of 2023 under the new tax regime.

The government anticipates a massive INR 14,000 crores GST collection from this sector in the coming financial year.

Challenges in suppressing offshore gambling websites

The Ministry of Electronics and Information Technology’s attempts to block offshore betting websites have proven futile.

The tenacious nature of illegal betting operators is evident in their ability to circumvent bans by frequently changing domain names, emphasizing the urgent need for a comprehensive approach that can successfully tackle these unscrupulous actors and protect vulnerable consumers from potential harm.

The current strategy of intermittently blocking the domains of illicit betting sites has shown limited success in curbing their activities, leading to the urgent need for a more robust solution that can effectively tackle unlawful operators and ensure consumer protection.

The gaming industry is ever-evolving. To ensure a sustainable and thriving ecosystem, the challenges posed by illegal betting and gambling activities must be addressed.

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