2023 turns out to be the year when Indian authorities finally recognized the existence of online gambling. In just a couple of months, many states voiced their concerns over the increasing levels of gambling addiction and the growing popularity of online gaming sites. But will the new policies be successful? Or will they push gamers into the hands of unregulated websites that operate in the black market?
Online Gambling in India 2023: The Summary
Online gambling regulations in India are a mixed bag. There are a couple of states, like Tamil Nadu, Telangana, Andhra Pradesh, and Maharashtra that have prohibited online gambling, and others, like Sikkim, that are trying to make it a lucrative source of income for the state.
Generally speaking, all gambling in India is regulated by The Public Gambling Act of 1867, a law that fails to implement any rules or regulations regarding online gambling. Until this spring, the decision was simply passed onto local authorities, often not particularly interested in regulating online gambling. However, things are changing.
When Money Disappears, the Flags are Raised
Indian tax officials have discovered a breach of GST regulations by offshore entities that provide Indian residents with online betting and gambling platforms through mobile apps. They are currently exploring ways to combat this form of tax evasion.
Long story short, online betting and gambling apps can be easily accessed by Android phone users via Google Play Store, and iOS users through the App Store, where they can be downloaded for free. In case you are interested in more detailed information about the best casino website in India, you can find lots of reliable review websites. These offshore companies are obligated to pay GST since they are collecting funds and providing services to Indian customers. However, it can be challenging to serve them with notices, as they do not have a physical presence or a permanent establishment in India.
Another drop of fuel to the fire is the encouragement to use cryptocurrencies when playing such apps. As tax authorities claim, decentralized currencies make it impossible to determine the source of money, as well as where it ends up, meaning there is possibly a large number of Indians who use it to relocate their funds and avoid paying taxes.
The Directorate General of GST Intelligence (DGGI) scrutinized 38 companies, now put on probation and encouraged to start operating by law. Yet, it is only the tip of the iceberg, as many of those gambling companies are located offshore, and frequently change their headquarters and bank accounts.
Is Self-Regulation the Key?
Another breakthrough was made by establishing a number of self-regulating bodies, consisting of prolific individuals from the world of psychology, gaming, etc., with the main mission to encourage safe and responsible gaming and oversee any gambling advertisements.
Minister of State for Electronics and IT Rajeev Chandrasekhar clarified that permissible online games are those that do not include any kind of betting or content that can lead to addiction or harm in children. The Self-Regulatory Organizations (SROs), which will oversee online gaming in India, will consist of industry experts, gamers, and other stakeholders instead of government officials.
The 2021 IT Rules have also been revised to incorporate regulations for online gaming. Under the new rules, the self-regulatory body for online gaming can categorize an online real money game as permissible, as long as it does not involve any betting on the outcome.
Will India Face a Reality Check?
Although everyone applauds the aforementioned efforts, there are still plenty of sceptics who warn the market is far from regulated. They express their concerns due to high corruption, and lack of knowledge, and even believe such actions are limiting the freedom of speech. Only time will tell what will happen with the Indian gambling market in the future.