$930milion USD annually: India’s online casino market is a golden opportunity being squandered
The online casino industry is a massive market that the government of any country can generate income from. The Indian economy is losing out in this golden opportunity because the law only allows for land-based casinos in only three states in the whole country. However, the country does not have any law that prevents foreign overseas companies from inviting Indians to play in their online casinos. Thus, Indians playing in foreign online casinos generate income for foreign countries instead.
A lot of countries get large revenues from regulated gambling and having land-based casinos in just three states will not affect the economy that much. India should choose to open up the betting and casino markets for Indians to start their own online casinos as well. This will boost up the Indian economy.
Speculated Revenue from the Indian Online Casino Market
With over 560 million internet users, India is the second-largest online market in the world. It is ranked only behind China which is the first. This is an amazing opportunity the Indian government should maximize and leverage to gain revenue from regulation and taxes.
A report by Maple Capital Advisors concluded that India’s gaming industry is currently valued at USD $930 million. This value is expected to grow at 41% annually. Based on this figure, the setting up of Indian online casinos ought to be welcomed with open arms. All that is needed is for the Indian government to open up the casino markets for Indians and legalize this new form of gambling.
Once the government enables online casinos, they will be regulated and taxed. If casinos were regulated and taxed at 15%, the Indian government will be getting$140 million through gross tax alone. The Indian economy will benefit largely from this.
In Europe, online gambling regulation is being embraced. European countries see the benefit of regulation especially in boosting their revenue. Also, in countries such as Sweden and Great Britain, online casinos are now regulated. This has created new sources of tax revenue in the process. The tax on gaming revenue is close to 20%. These countries have understood that a lot of its citizens enjoy gambling on online casinos. Getting more revenue would not be that complicated, so the Indian Online Casino Market should follow the steps of the other countries.
Table Predicting the Gross Tax Revenue
The following table compiled by casinos-india.in outlines how much a gross revenue task imposed on the operators could be worth. This is based on the predicted market value.
Predicted gross tax revenue based on market size, 2020 – 2024
From the table above, we can see how much gross tax revenue is gotten when the Indian government allows Indian online casinos to operate. Looking at the black market, we can definitely say that the Indian online casino market will definitely thrive if allowed by the government.
Advantages of Having an Indian Online Casino Market
Aside from the revenue that can be gotten from it, there are a lot of benefits that the Indian government will get from legalizing Indian online casinos.
The regulation will create jobs, thus generating more tax income and taking pressure off the social security budget. Aside from the taxes levied on the companies, they would also boost the economy by employing salaried Indian citizens. There are hundreds of high skill job opportunities in e-commerce and igaming.
An Opening for Foreign Investments
The Indian online casino market will bring in foreign investment as any foreign operator will, by law, be required to take on an Indian partner company as part of the licensing process. This move is a call out to foreign investors to link up with Indian partner companies. It is a win-win for both the Indian government and the foreign company when it comes to cashing out and making profits.
A Certified Gambling Environment
Standard rates of taxes and a properly regulated gambling market will offer Indian gamblers a stable and protected market in which to gamble. The regulation will serve as a guide for Indians to know which is legal and safer to gamble in. Knowing which casino is endorsed by the government will help keep players safe from fraud and scams.
More Revenue for the Indian Gambling Economy
In India, cricket betting is very popular and ordinary Indians are gambling online regardless of the law. As much as $20 million is placed on a single India—Pakistan one-day international match. The amounts involved are too high for the government to ignore. There is demand and people will do it regardless. At best they could ensure that it is kept within the country. The Indian government should seize this golden opportunity.