A delusional government – a new gambling tax system in India imposing 28% on winnings is only helping overseas online gambling sites flourish. (Image courtesy of Andres Ramos on Vecteezy)
Yes, it’s a bold statement—not one I can back up with facts, but commonsense. The facts should soon follow as research continues. I don’t expect the full extent of any research to come out until sometime in 2025.
In short, India has opened the floodgates for overseas online casinos to exploit the fact that the government has weighed down the online gambling entertainment industry.
How? Have you read this news report about the ridiculous 28% gambling tax rate in India? An old-school government influence pushing his or her weight around is ruining the industry in India while helping the overseas casino flourish.
It shocks me that these countries do not learn. Australia is the perfect example. Ban all online casinos and create an overseas black market. Even though the Australian Communications and Media Authority (ACMA) bans overseas casinos, the project wastes time and money. There is such a thing as a VPN and a growing market for VPN-friendly online casinos. All Aussies need to do is log onto a VPN, look for a VPN-friendly casino that accepts Aussie players, and stop playing online slots and table games.
The same applies to India. Youngsters log on to a VPN, search for a VPN-friendly casino, and register. These casinos mostly come with Curacao licensing, but I am unsure how long that will last. It depends on how stringent the new rules put in by the Curacao government are. The rules mostly concern financial transparency (AML) and player protection.
There is no mention of not allowing players from India to play on online gambling platforms under the Curacao licensing. However, that ban could still happen, and if it does, it would create an even more worrying issue. Players would seek out casinos with no licensing whatsoever.
Curacao and MGA Casinos Still Accepting Players From India
Online casino accepting players in India They will certainly not refuse KYC checks because that would mean bad feedback. What better way to market your casino than to have Indian citizens rant and rave about a casino that accepts players from India? You are talking about a market exposure of approximately 1.40 billion. Now, how on earth are these casinos going to pass up a market larger than the US and Europe put together?
The same applies to casino operating under the Malta Gaming Authority (MGA) licensing. No mention of any intention to stop offering access to online casino sites for players in India. Just in the T&Cs of the casinos it usually says ‘You are responsible for tax laws that apply proceeds from gambling in your country’.
India’s IT Ministry Blocking IPs is Just a Waste of Time
The country’s IT Ministry can forget about banning IPs because there are still easy routes around this, even with VPNs not technically allowed in the country. The caveat is that the IT savvy will still gamble online under the noses of the government, and most of those gamblers are the younger generation. These are the people online and of age to gamble. And the old school government big wigs are so disconnected with how tech savvy the younger generation is, they have no idea the damage the 28% tax rule is going to cause.
One that states that the intention is to prevent youngsters from gambling – yeah right! My son is 14 and already has a Metamask and Trust Wallet using them for his online gaming payments for his MOBA gaming. USDT, PLS, ETH, and some cryptos I’ve never heard of that are popular in his Discord group to buy mods for his games. Even me, a tech savvy online casino player can see just how well the younger generation is adapting to crypto, and don’t get me started with his ETFs because then I am truly lost (and I just called myself tech savvy).
Leading back to the title of this article. If my 14 year old son has figured out cryptos I’ve never heard of and deal in ETFs like they are the norm, how is India’s 28% tax rule going to stop those youngsters that reach 18 and can pass online casino KYC checks from gambling? They are in la la land.
Damage Done: Betway Already Pulled Out of India Last Year
You may have heard that Betway just stopped operating in India. This big online gambling company decided India is no longer a good fit.
Here’s the scoop. The Indian government recently created a new 28% tax on all money betting websites make from Indian players. Before, online gambling wasn’t really taxed at the national level there. We think this new tax makes it way harder for companies like Betway to be successful in India. An industry group agreed, saying the super high rate will put legal sites out of business.
If that happens, you and others could start using illegal websites out of desperation! And that never ends well… We say illegal websites, more like people will begin finding ways to use overseas crypto exchanges where it is easy to apply for a credit card and withdraw cash from the hole in the wall. That means any winnings from crypto betting or even crypto investment success does not run through the tax system.
In all honesty, from my point of view it is utter stupidity even thinking a 28% tax system would work. OK. Well, maybe not that stupid. Those who are not crypto savvy are simply not going to gamble, and it seems although India has put rules on gambling and taxes, the country is looking to destroy the industry. Or maybe with its huge population, the government still feels it will bring in a large revenue from online gambling sites willing to toe the line under the new rules by registering as an operator within the country’s legal online gambling entertainment system.
2022’s Online Betting Site Rules
Earlier in 2022, India also set some ground rules for online betting websites. The sites have to follow both national AND local gambling laws where people play. Additionally, the government wants the industry itself to monitor issues like addiction, underage access, etc. Noble goals! But ambitious to achieve overnight.
Losing India Does Not Affect Betway’s Bottom Line
Even losing in India doesn’t change Betway and parent company Super Group’s bottom line…for now. The CEO says they have enough opportunities in other countries they already operate in. But India’s back and forth on online gambling does show how policies evolve. Companies have to keep evaluating if countries’ new laws affect their helpful things – like profits!
What do you think – did Betway make the right call saying see ya later to India for now? How can countries balance rules and taxes so legal online gambling thrives versus shady underground stuff? And how do you think the old school think tanks in the current government of India are going to get with times and find a less lazy solution to preventing youngsters from gambling or at the very least offer a safe online gambling environment? Let us know!
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