The history of gambling in India hasn’t exactly been a smooth ride thus far. Currently, gambling is technically banned throughout most of India. However, that hasn’t stopped the Indian people from engaging in gambling in various shapes and forms throughout the years. In fact, the gambling industry in India happens to be one of its biggest markets. Unfortunately, the government is incapable of capitalizing on the growing market as a result of its outdated legislations on gambling in the country.
The most prominent piece of legislation surrounding gambling in India was first passed in 1867 and it’s called The Public Gaming Act. It’s essentially a law that prohibits the Indian people from entering or operating gambling institutions. There are currently only two states in India that are exempted from this law and they are Goa and Sikkim. Aside from that five-star casinos and off-shore gambling vessels (like floating casinos) are exempted from the law as well.
Additionally, there are numerous loopholes and grey areas within India’s existing legislative structure around gambling that have been exploited both by consumers and by operators. For example, in law, there is no real distinction between games of skill and games of chance. Given that, some operators can make the arguments that games like Poker should be allowed in India because they require more skill than a random chance-based game like slots. Other ways that people have managed to maneuver around the system is through online casinos. With off-shore operators and foreign third-party e-wallet systems, it’s been relatively easy for Indian gamblers to access casinos via the internet and play with real money. In fact, online and live casinos are a lot more popular in India than traditional land-based casinos.
The gambling industry in India is one of the most lucrative in the country and it begs to ask the question what the government has to gain from regulating such a market. Would legalizing gambling in India inevitably lead to an improved economy or will it be business as before?
Higher Tax Earnings
The first lens through which one can view this issue would be through tax earnings. Experts believe that the gambling industry in India could be worth as much as 143 billion rupees by 2022. Given India’s high taxation laws, that could result in a significant chunk of change for the government that could translate to better social services and public funding. Many countries, especially in the west, are becoming more and more receptive to the idea of using the gambling industry as a cash cow to fund their social services. With the amount of people in India who gamble on a consistent basis, it might be difficult for the government to continue to ignore how much they could potentially be earning in tax revenue if they just regulated gambling all throughout the country.
Legitimate Employment and Commercial Opportunities
Aside from the additional tax revenue for the government, another way that regulating gambling in India can positively affect the economy is through its employment and commercial opportunities. The gambling industry is one of the biggest employment hubs in the world. A single large-scale casino alone requires a great workforce that handles a variety of different departments including management, food and beverage, hospitality, security, custodial services, and more. Legalizing the gambling industry in India will open up a lot of legitimate job opportunities for the labor force of India.
In addition to that, foreign investors and operators will be more enticed to partner up with local operators in setting up legitimate casinos and gambling houses in the country. This will mean an infusion of cash from foreign investors that could further expand the Indian economy. The industry is ripe for expansion, especially in a legitimate manner, and many foreign investors are eager to put their money into the Indian markets.
Potential for Tourism Boom
Lastly, any place with a solid gambling industry is bound to experience a boom in its tourism. This is why cities like Macau and Las Vegas are so economically successful. Not only are their local economies stirred by gambling itself, but the added revenue from tourism that they receive is also of great help.
Ultimately, there are many ways through which the legalization of gambling can jumpstart the economy. It’s just a matter of who’s willing to put forth the effort to start making things happen in a legislative capacity.