The Indian government has banned over 200 online betting websites and apps. The government has banned well-known platforms such as Betway and 1xBet. This was done to combat the growing problem of online gambling in India.
The move came after the Ministry of Electronics and Information Technology directed internet service providers to block access to these websites.
Why Did The Indian Government Ban Online Betting Sites in India?
The rise in online gambling and betting in India has become a cause for concern. This is particularly among young people and especially when the IPL season is on.
IPL betting in an offline manner makes way for crime to come into the picture. The government fears that this trend will have negative consequences, such as an increase in crimes such as money laundering and fraud.
The ban on betting sites is part of a larger effort to regulate the online gambling industry. This move is also made to ensure that it operates in a more responsible and ethical manner.
Current Legal Status of Online Gambling in India
The Public Gaming Act of 1867 regulates gambling in India. But the act doesn’t mention online gambling since it was passed before the internet existed.
The Information Technology Act of 2000, which regulates online activities, also makes no mention of online gambling. Therefore, online casinos and betting activities are considered neither legal nor illegal in most parts of India.
Only three states, Sikkim, Nagaland, and Meghalaya, have gaming laws and licensing regimes. In 2020, Telangana and Andhra Pradesh banned online gambling and real money gaming activities.
Karnataka and Tamil Nadu attempted to impose a blanket ban on online gaming activities in 2021. But the courts declared these unconstitutional. The gambling laws haven’t been updated which has been causing the issue.
What are the Impacts of the Online Betting Apps Ban In INDIA?
The ban on over 200 betting sites will have a significant impact on the online gambling industry in India. Gamblers in the country will have limited options now. This will force them to seek out other avenues for their betting needs.
Moreover, the ban will also have a significant economic impact on the companies that operate these betting sites. This will result in job losses and loss of revenue for the government.
However, the ban will help the government monitor and regulate the industry more effectively. With fewer illegal betting sites to contend with, the government can focus its resources on ensuring that licensed operators comply with regulations and operate in a responsible and ethical manner.
India Imposes 30% Tax on Net Winnings from Online Games – Budget 2023
During the Budget 2023, India’s Finance Minister, Nirmala Sitharaman, announced a 30% tax on “net winnings” from online games. The tax will be payable either at the time of the withdrawal of winnings or at the end of the financial year.
The minimum threshold limit of INR 10,000 for calculating the tax deducted at source (TDS) was also removed.
The Income Tax Act was amended to incorporate these changes in two new sections. One was 194BA for TDS of winnings from online games for online intermediaries. Another was 115BBJ for the computation of taxes for those who earn income from winnings from online games.
Gaming platforms and experts welcomed the move. The experts said it would lead to more transparency in the sector.
The Future of Online Betting in India
The sportsbooks are still advertising heavily on the front page of newspapers. You can see the betting sites’ name on the jersey of Indian Super League (ISL) teams and Pro Kabaddi League teams with the help of surrogate marketing. So you will see the name of ‘Parimatch news’ being displayed on the jersey.
The Ministry of Electronics and Information Technology (meitY) is responsible to keep a track of all this. The government is now preparing to review a draft of regulations for online betting in India. These regulations are expected to address problematic gambling behaviors among minors.
They are planning to come up with measures such as mandatory customer enforcement complaint procedures, strict player verification, and content checks for violations of the sovereignty and integrity of India.
The Ministry of Electronics and IT will be responsible for regulating and registering online gaming operators. Although the regulations are open for public input, the government is actively taking steps toward legalizing and regulating online gambling.
