After years of ignoring the problem, Indian authorities are determined to tackle the issue of online gaming once and for all. One of the first to make concrete moves is the Directorate General of GST Intelligence (DGGI) of India. This government agency has made some serious moves on no less than 38 gaming operators which they believe are doing business against the money laundering laws and regulations.
Regulatory Pressure Grows
According to the DGGI, the companies are not only operating without licenses, but also display suspicious behavior. They collect data from Indian consumers, take their deposits, and then take the money out of the country without abiding by a single law or regulation. The end result is not only harmful to the customers, but the State of India, as well.
As per the report, companies evade paying any taxes in India, which means fewer funds for social causes that are, across the globe, usually funded by money from gambling taxes. Some of the most notable ones are schools, art programmes, social services, and of course, the fight against problem gambling.
Another aspect of the issue is money laundering by highly influential individuals who use online gambling platforms as a place to put their money, only to pick it up elsewhere. Again, it is India who’s at a loss.
After years of waiting, it seems that India could not regulate online gambling activities, but ban it altogether. But nevertheless, new casino brands are still appearing in the Indian gambling market and you can find the list for 2022-2023 at CasinoHEX.in.
Billions Are Leaking Out of the Country
Although the aforementioned statement might seem a bit harsh, the DGGI has the receipts to prove unregulated gambling is a serious issue that should be solved immediately, and with great care. The agency made a conservative estimate the country lost INR120 billion (US$1.46 billion) between April 2019 and November 2022. In reality, the numbers could be much higher.
It is not only the DGGI that has been concerned about the gambling platform. The Tax Department stated many operators encourage crypto-payments, thus making it impossible to track the money and find its source.
Gambling Operators Face Consequences
The DGGI’s report is only the tip of the iceberg, and it is now upon the authorities to proceed. The offshore gambling operators will have to pay all the taxes that have been long overdue. Additionally, it is expected for them to undergo the GST (goods and service tax) registration if they want to keep operating in the country.
Failing to comply with the aforementioned consequences, will result in the Ministry of Electronics and Information Technology (MeitY) taking necessary actions against companies, and potentially even a blanket ban on online gaming. High-ranked officials of gambling companies that fail to abide could face prosecution.
Indian Wild West
Despite the fact that DGGI’s action might seem like work within a tightly regulated gambling market, the truth is quite the opposite. There are no modern gambling laws in India, and the majority of the states are relying on The Public Gambling Act of 1867 which, unsurprisingly, doesn’t mention online gaming of any sort.
This leaves the domain in a grey area, where it is not officially prohibited nor allowed. That doesn’t prevent Indian superstars such as cricket stars Dwayne Bravo and Kieron Pollard from appearing in gambling advertisements of all sorts, including those in newspapers.
For now, the majority of states are waiting for someone else to make the first move. The only state that opted for a more proactive approach is Tamil Nadu which banned all online gambling activities in their entirety. Still, the black market is not that easy to get rid of.