According to figures shared by the advertising industry, it will lose anywhere between Rs. 3,700 crores and Rs. 5,810 crores if the government is successful in curbing all illegal betting promotions in the country. Imagine the kind of money these illegal platforms would be making if this staggering advertising expenditure is any indication.
As per a Think Change Forum report titled ‘State of the Betting and Gambling Industry in India’ released in October 2023, the offshore illegal sports betting market receives an estimated Rs. 8,20,000 crore ($100 billion) per annum in deposits from India. This sector has experienced a growth rate of 20% per annum over the last three years after the pandemic. At the current GST rate of 28%, the Indian government is losing out on a GST collection of Rs. 2,29,600 crores per annum. Another aspect of the issue is unless measures are implemented to stem these illegal platforms, there is a risk of a mass migration of Indian users to these platforms, potentially jeopardising the legal gaming industry and resulting in more significant losses for the government.
The government has been resolute in its efforts to combat illegal betting platforms and apps. In November 2023, the Ministry of Electronics and Information Technology (MeitY) issued blocking orders against 22 illegal betting apps and websites. These platforms offered a variety of live games, including various sports such as cricket, football, badminton, and tennis.
In addition to blocking orders, the government is considering stricter rules for Unified Payments Interface (UPI) transfers, which these entities exploit to receive payments through proxy bank accounts. While these actions may curtail the growth of illegal betting platforms to some extent, only with decisive measures can illegal betting be checked. At this crucial moment, India’s online gaming sector requires a transformative approach to regulation. Effective governance is essential to differentiate between games of skill and games of chance, enabling stakeholders to make informed and responsible decisions.
A robust regulatory framework will not just track the illegitimate betting platforms better and reduce their operations, but also provide a fillip to the legitimate operators who operate within the realms of the law, employ lakhs of skilled individuals, and have the potential to make India the gaming capital of the world.
(Dr Ramakrishnan T S is a Public Policy Expert. He can be reached at ramakrishnan@iima.ac.in. This is an opinion piece and the views expressed are the author’s own. The Quint neither endorses nor is responsible for them.)