Tax increase on gambling in India

Tune in for today’s gambling news India discussing new tax rates, the possibility of online casino licensing, and the legality of gambling. (Photo by Shamoil on Unsplash)

In the latest gambling news coming of India, there is an uproar in regard to new gambling tax hikes that could see some local operators exit the industry. Could this hand play into the hands of overseas online gambling establishments?

Furthermore, you get inside information on the possibility of a new gambling licensing authority coming to India in the near future. It has been on the cards for some time and is looking ever more likely as the topic continues to arise.

To finish off, we give you an update on the legality of online and live casinos in India.

Tax on Casinos in India to Increase From 18% to 28 Percent

Earlier this month, the Indian government reportedly agreed to increase the tax on casinos in India from 18% to 28%. The move is expected to bring about a major increase in the cost of gaming in India.

Despite the tax on casinos in India being a contentious issue, the government has decided to go forward with the new tax rate. However, there is no consensus on how the new rate should be applied.

The GST Council is set to meet on the last week of this month to finalise the new tax rate. This is expected to be the final decision on the matter. In addition to the GST, a 4% surcharge would be imposed on gambling winnings. This would be applied to both cash and in-kind winnings. The surcharge is meant to be utilised for national priorities. The new tax on casinos in India will affect all stakeholders. It will increase the cost of gaming and will negatively affect telcos. It will also reduce prize pools.

The government of India will not be making a clear distinction between gambling and games of skill. This will make the tax on casinos in India unfair to gaming companies. A lot of homegrown gaming platforms could be forced to close down, which will affect the country’s tax revenues. It will also be very hard for Indian gaming companies to compete with international gaming companies.

It is estimated that the new tax on casinos in India will increase the cost of gaming by as much as 900%. Some other estimates put the figure at a 1,000-1,500% increase.

Which India Gambling News Stories Are Covered?

  • Gambling tax increase on all Indian establishments
  • Lawmakers are still considering regulating online gambling in India
  • The current situation on the legality of online gambling in India

Lawmakers in India to Consider Legislation to Regulate Online Gambling

Various Indian states are moving forward with legislation to regulate online gambling. Some states have even banned online skill games. Some lawmakers have suggested the legalisation of online skill gaming. However, it is difficult to tell how such a bill would affect the Indian economy.

In fact, the size of the online gambling industry in India is estimated to be around $1 billion. The size of this industry is expected to rise by around 40 percent over the next year. Enhanced technology is boosting the growth of the industry.

The Sports (Online Gaming and Prevention of Fraud) Bill, 2018 was introduced by Shashi Tharoor in the Lok Sabha in 2018. Its objective was to regulate the unorganised online gaming sector. It includes the Sports (Online Gaming and Prevention of Fraud) Act, 2018 and an online gambling bill. It also mandates licensees to maintain accounts.

The Gambling Commission of India recommended that a gambling law should include a link between betting transactions and the use of Aadhaar cards. It also recommended that gambling be only permitted by licensed operators from India. It recommended that the income generated from gambling should be taxed under the relevant laws. It also recommended that cashless transactions between operators and participants should be allowed.

The Indian government has taken a strong stance against online gambling. It claims that gambling is a negative social activity and that it will harm the youth. However, the country loses millions of dollars each year to foreign online gambling sites.

Are Casinos Ban in India?

Several Indian states have taken a stand against gambling, especially online gambling. The government has been trying to regulate the industry by passing gambling legislation. However, many states have yet to pass any legislation.

The new law prohibits online gambling and rummy, but the draft ordinance has yet to be implemented. The ordinance has also been challenged as unconstitutional by the All India Gaming Federation. Besides a ban, the new law includes punishments for those who visit or operate gaming houses. The maximum fine is INR 100, while the maximum imprisonment is one month. The ordinance also prohibits the use of payment gateways in gambling-related transactions.

The government of Tamil Nadu has introduced a bill to regulate online casino games. The bill was introduced in the state assembly on Wednesday. It also includes a blanket ban on games like poker and rummy. In addition, the government has issued a ban on gambling ads. A Ministry of Information and Broadcasting (MIB) statement said that gambling ads promote illegal activity and are harmful to the public. The ban is aimed at keeping gambling from being exploited as a financial opportunity.

Although the ordinance has yet to come into effect, it will probably be announced in the next few days. The draft ordinance is being sent to the Raj Bhavan. The new law is expected to help the economy by taxing gaming revenue.

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