Illegal betting and gambling activity in India, according to a recent report, are expected to grow at 30% in coming years. The factors responsible for this are inadequate legal framework, selective banning as well as high taxation on legitimate online gaming platforms.
Despite regulatory restrictions, the illegal betting market receives an estimated $100 billion per annum in deposits, according to Delhi-based policy think tank Centre for Knowledge Sovereignty (CKS).
Statistics suggest that this market grew at 7% CAGR from 2012 to 2018 and is expected to grow at an annual rate of 30% in the coming years.
In India, Illegal operators are also taking advantage of the new tax regime which levies 28% tax on deposits on legitimate gaming platforms.
Goenka further said that these operators are deceiving consumers into joining and participating on their platform on the pretext of exemption from any GST or taxation obligations.
He also highlighted that the technology Ministry’s efforts to ban offshore betting websites has been ineffective as illegal operators have resurfaced through new web domains.
“The central government expects to collect up to INR 14,000 crores in GST from this sector in the upcoming financial year. It is expected that this sector would contribute approximately INR 80,000 crore in the next five years,” Goenka said.
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