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How Can a Proper Gambling Law in India Benefit All Involved – Government, Players and Operators

Kevin Schultz by Kevin Schultz
10 March 2024
in Entertainment, Games
How Can a Proper Gambling Law in India Benefit All Involved – Government, Players and Operators
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The online gambling industry, also known as the iGaming industry, is one of the world’s biggest and fastest-growing industries. It generates billions of dollars annually for governments across the globe, helping increase the gross domestic product (GDP) and bolster the economy.

Let’s dive straight in to discover how a proper online gambling law in India can benefit everyone involved, from the government that generates revenue from legally permitted online gambling activities to the players and the website operators.

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Are gambling laws the same across the world?

No. The online gambling laws in each country vary significantly across the world. The United Kingdom, for example, as well as most Canadian provinces, several US states, and various other regions, are well-known for having mature online gambling licensing and regulation systems and some of the best legal frameworks in place to protect everyone involved.

Countries like India are considered to have underdeveloped iGaming legal frameworks and poor licensing and regulation practices. Because of this, places like this often miss out on significant income streams generated by online gambling activities.

In regions with underdeveloped online gambling laws, you often find that gambling activities are either strictly prohibited or players have little or no protection against problems that can occur from gambling.

Additionally, players may not have the proper legal backing they are entitled to should any issues arise from playing at betting sites in India, especially at unlicensed and unregulated sites.

Similarly, iGaming operators and players who spend money on these sites operating in countries with underdeveloped online gambling laws are often taxed vast amounts on their revenue/winnings (like in India, since the new 28% GST regime was introduced in October 2023).

It usually leaves players with no choice but to play at offshore iGaming sites that fall outside the country’s jurisdiction and for companies not even to bother applying for a license to operate in that jurisdiction.

How can a proper gambling law in India benefit everyone involved?

Having a proper gambling law in India can benefit everyone, from the government to the players and the operators. India must look at how online gambling laws work in other regions like the United Kingdom and try to mimic how the Gambling Commission regulates the industry.

Doing things the right way can see governments and operators prosper more. It would give players much safer iGaming websites to choose from, and those players would have access to much more reliable, safer/responsible gambling tools.

Taxes are imposed to help fund that country’s key social and economic programs, and when regulation, taxation and licensing practices are done correctly in the iGaming industry, the revenue generated by the iGaming industry can help fund social programs and problem gambling initiatives. It can also be spent on various other public health and sports initiatives.

What other social and economic benefits can a well-regulated iGaming industry bring to countries like India?

With a flourishing, well-regulated iGaming industry, where licenses are issued to reputable operators but only after strict vetting processes, there can be many other social and economic benefits.

The number of additional projects, initiatives, and businesses relating to the iGaming industry can also prosper. A mature landscape for the iGaming industry can help create more jobs, thus reducing unemployment, which is one of the biggest benefits.

Some of the main companies that can also benefit from iGaming are in the fintech sector, such as the online payment processing gateways that facilitate deposits and withdrawals between the players and the iGaming sites they register with.

Affiliate marketing websites that help drive traffic to the safest and most secure iGaming sites can also benefit from increased conversions and commission.

Digital marketing companies, as well as the game development studios that make the games and the software providers that supply them to casinos plus various other startup companies, can also prosper, but only from a well-oiled iGaming sector with the correct laws and regulations in place.

What does the future of the iGaming industry look like in India?

Since the new 28% GST regime came into effect last year, many said it would mark the death knell for the iGaming industry in India, although the government still expects to see year-on-year growth.

However, several major iGaming operators have since pulled out of the Indian market, and many players have chosen to play at offshore iGaming sites that fall outside of Indian jurisdiction.

To benefit everyone involved, the Indian government may have to completely rethink its current strategy if it wants to have a thriving iGaming industry and a safe online environment for people to spend their money.

Local and main government authorities, along with industry leaders in India, must adapt to the ever-changing gambling landscape to prosper financially and ensure a safe and well-regulated environment for everyone involved, especially the players.

*The opinions expressed in this article are purely those of the author and do not necessarily reflect the views of TFI Media. The content should be taken as the sole perspective of the writer.

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