Relationship Between Taxation And Casino Industry Growth In India

Akil Khan
by Akil Khan
September 20, 2023

India's gambling industry is stated to be booming as before, during, and after the pandemic. People have moved towards online gaming for entertainment and, of course, to make money. A Deccan Herald report states the gaming industry is projected to reach $5 billion by 2025, and an annual growth rate of 28% to 30% will be witnessed. Despite this, as every industry pays taxes, the casino industry is bound to be among them.

Let's follow the detailed guide on how taxation policies impact casino growth.

Taxes Levied On Casino Industry

At the end of the financial year, we will all be buried with one truth: taxes. You, me, or any big tycoon can't escape the tax bars.

You ought to, you need to, and you will always have to pay taxes on your earnings if they jump behind a certain limit.

A Reuters report states that the Indian government has imposed a 28% tax on casino earnings in India. The tax will be imposed on the real money games. It will be mainly imposed on horse racing, online casino, and real money gaming. A few experts believe this will restrict India's booming casino sector, but a few more have stated that it will provide a minimal revenue impact. There will be a minimum impact since the tax will be levied only on winnings or real-money skill-based games.

Is it a cliché statement?

Well, no, as the year 2022 saw a tax of 5.2% on the overall revenue when the taxation laws and GST on casino goods were 30% + 10% surcharge. Now, as the taxation on real money games is capped at 28%, the gaming lobby has petitioned the PM to bring down the taxes to 18% on the casinos.

Taxes Levied On Casino Industry

States In India Providing Casino Games

"The winning counts in gambling, and not just participation."

Yes, you will be taxed on your winnings, not your game participation. This is what government rules say. India has 21 legal casinos with a concentration in states like Daman, Sikkim, and Goa. The state of Goa also offers cruise shipping services where casino gameplay is rising. They are all licensed casinos whose earnings are taxable by the government. Still, casino gameplay is on the rise after paying the required taxes. The reason being they go according to the set rules of the government.

These online and offline casinos meet the criteria of security, planning, responsible gambling, and fair play gambling. However, confusion in taxes sometimes arises because of the GST laws of the state and central government. The government has now bracketed them under the new 28% taxation law. Still, the gambling brands in India offering casino and online gambling games are in talks with the government to lower the taxes to 18%. It will help with the growth and expansion of the gaming industry plus addition to the economy of India too.

Even the casinos are made a legal entity under the law where they are given the status of 'reporting entities.' They must report suspicious transactions or online money laundering activity to the Financial Intelligence Unit of India. Even MeitY or the Ministry Of Electronics and Information Technology check the final report detailing casinos.

Taxation Impact On India's Casino Industry

You cannot tell the Lion what to do. The same goes for the taxation bodies and the government.

It is important to abide by the rule of the land. The taxation may be seen as a hampering technique by a few online casinos, but the government watches it as a move to check money laundering activities. This move also comes in the wake of helping people play responsibly, and casinos need to build a support team to help casino players bet within their budget.

Another view the government represented was that essential goods cannot be taxed heavily, so taxation on other sectors, like online gaming, gambling, entertainment, etc., is necessary for economic growth. However, the final report submission is still in the loop. The government and representatives of the online gambling industry are still carrying out discussions.

The curb of taxation is seen to be made to keep the black-market operators away. However, most gambling operators still see the taxation policy as a burden. In India, Rummy Circle, Big11, Junglee Games, etc., are the biggest operators. The whole vision of gaming is again under scrutiny under the tax laws. The only fear is that if the taxes are not given a low percentage, it may discourage players, and a job recession may be seen in the gambling industry.

The Future Of The Gambling Industry In India

The Indian government is set to levy 28% of taxes on the gambling industry. A few state-run casinos and casino experts are against the increase in taxes. They want the taxation to be charged at a mere 18%. However, you cannot forget the economic surveys that state India will make a revenue of $5 billion by the end of 2025.

Lumikai, an interactive media and gaming fund, released substantial statistics on the gambling industry. India's gambling industry will be $5 billion by 2025 and $8.6 billion by 2027. The Indian gamers rose by 5.7 crore from 2022. It will make the gross gambling revenue cross $550 million.

More than US players, Indian players download the games, rated at 17%. MPL, Dream11, and Games 24x7 are the three major unicorn gambling companies that have emerged in the gambling sector of our country. Other gaming companies and the online gambling industry are set to release immersive games by using new technologies like AR, Metaverse, and VR.

You cannot say the challenges are not there, but the reports and statistics above show that the Indian gambling industry is growing rapidly. If the government focuses on the economic yield from casino gaming, things can be discussed, and GST reforms can be devised.

The Future Of The Gambling Industry In India

Related articles

Good luck charms: superstitions or divine blessings?
Akil Khan

Akil Khan

March 21, 2024

Good luck charms: superstitions or divine blessings?

In casinos, we often hear phrases like good luck and good fortune. Not surprising, really, given how the majority of casino games are based primarily on chance, though some would claim that success is also down to mathematics and algorithms.

In any case, luck plays a crucial role in gambling, and many gamblers will have their own rituals they perform before games or even lucky charms they carry to improve their chances of winning.

Hinduism, one of the oldest practising religions in the world, believes in positive and negative energy, which could define your moves and outcomes. Furthermore, there are several ways one can channel these energies, whether through prayer or certain objects such as charms or symbols. We shall discuss these in more detail below.

Gambling
Responsible
Beyond chance: where gambling and Vedic astrology meet
Akil Khan

Akil Khan

March 21, 2024

Beyond chance: where gambling and Vedic astrology meet

Whether you like it or not, luck plays a crucial role in gambling. And while many would argue that it’s an unreliable force, for many Indians, the ancient tradition of Vedic astrology offers a way to understand how luck works in the universe and how one could potentially manipulate it to work in one’s favour.

Vedic astrology (known as Jyotish in Sanskrit) is the practice of studying planetary positions, celestial influences, and karmic patterns to understand how these influence and shape human lives and destinies.

When it comes to gambling, some Indians look to Vedic astrology to boost their chances of success. By analysing astrological charts and horoscopes, and identifying cosmic connections, gamblers seek to find the most advantageous time to gamble, looking for lucky combinations of numbers, or even charms and rituals to help improve their chances.

Let’s look at this more closely:

Planetary configurations

"Muhurtha", an essential principle of Vedic astrology, indicates the opportune time to partake in certain activities based on planetary configurations. It also highlights when best to avoid certain activities. So, in the case of gambling, a player would wait for a favourable Muhurtha to maximise their chances of success.

Presence of the planets

Vedic astrology focuses on nine “grahas”, which are collectively referred to as the “navagrahas” (nava meaning nine). They include the sun (Surya), moon (Chandra), Mars (Mangala), Mercury (Budha), Jupiter (Brihaspati), Venus (Shukra), Saturn (Shani), Rahu (north node of the moon), and Ketu (south node of the moon). According to Vedic astrology, the planet Venus offers luxury and Jupiter provides immense wealth. A conjunction of Jupiter and Venus unafflicted with the moon is therefore said to bring good luck and prosperity.

Birth charts

Many Indians strongly believe in analysing their birth chart in every aspect of their life. This comes from Vedic astrology, which argues that the alignment of different celestial bodies at your birth can provide invaluable insights. In the case of betting, it could highlight a person’s gambling and risk-taking tendencies and subsequent strategies they could employ to maximise their chances of winning, translating into profits and success.

Astrology and numerology

Hindus love to rely on their favourite numbers, particularly when it comes to gambling, and generally prefer odd numbers over even. Seven and eight are considered auspicious numbers, representing success and prosperity. Many Hindus also use these numbers at the time of Diwali when, in some houses, gambling is a ritual. Another lucky sequence of numbers in Hinduism is 786, representing the Trinity of Brahma, Vishnu, and Shiva.

Gambling
Responsible
How casinos are capturing the heart of young Indians
Akil Khan

Akil Khan

March 1, 2024

How casinos are capturing the heart of young Indians

Casino games, poker and sports betting are becoming popular among Indian gamblers, with the ever-evolving digital landscape and higher penetration of the internet and mobile devices causing revolutionary change. 

Statista reports that in 2024, India's online gambling market will hit $2.9 billion, driven by the increase in smartphones, with everything from slots and table games to rummy and Teen Patti available to play on mobile.

Today, India has over 900 million internet users, 40% of whom have gambled on online gambling platforms at least once. So, not only are brick-and-mortar casinos in states such as Goa, Sikkim, and Daman booming, but regulated online casinos are also fast becoming popular. 

Fantasy sports are thriving, with millions of young Indian players signing up to sites such as Parimatch and Dream11 to play cricket, hockey, football and kabaddi, among other popular sports. Learn more about casinos' impact on Indian youth in recent years and why people are shifting more towards this billion-dollar sector after the pandemic.

Gambling
Responsible
Tips
How to choose lottery numbers – 8 top tips
Ana D.D.

Ana D.

February 29, 2024

How to choose lottery numbers – 8 top tips

While the lottery is undeniably a game of chance, this guide offers some nifty ways to boost your odds when selecting those crucial numbers. We'll take you through eight different approaches, sharing our expert insights and tactics.

Gambling
Responsible
Tips
13 of the unluckiest people in the world
Ana D.D.

Ana D.

February 29, 2024

13 of the unluckiest people in the world

Read up on the remarkable tales of some of the world’s most ill-fated people, from the person who lost out on a multi-million-dollar jackpot to the man who was struck by lightning seven times. We present the official top 13 unluckiest people in the world.

Gambling
Tips
Responsible
From traditional to online: India steps into a new gambling era
Ana D.D.

Ana D.

February 29, 2024

From traditional to online: India steps into a new gambling era

India’s iGaming world has taken a 360-degree turn with the complete revolutionisation of the gambling industry in recent years. Today, with a click of a button on your smartphone, you can dive deep into the world of online gambling.

A survey report revealed that there are 759 million active internet users in India (71% of the country), and by 2025, this figure is expected to hit 900 million. The growing number of mobile devices with fast internet, such as 5G, will boost the iGaming industry. Almost 31 million smartphone users upgraded to 5G in 2023, and 39% are willing to pay more for higher data usage on these plans.

As high-speed internet becomes more accessible, we expect to see a shift from land-based casinos to online casinos, which allow gamblers to play from the comfort and convenience of their homes or while on the move. Let’s take a look at how India’s gambling industry has transformed over the years and shifted towards a modern gambling system.

Gambling
Tips
Responsible
Betting and gambling in ancient India: A complete insight
Gambling
Tips
Responsible
Bhikhari teams in the Indian Premier League
Akil Khan

Akil Khan

February 29, 2024

Bhikhari teams in the Indian Premier League

The IPL’s three Bhikhari teams have never lifted the trophy but provide entertainment every season. Learn more about the Bhikhari IPL teams so you can take advantage of the latest cricket odds.

Gambling
Responsible
Tips
Who is the King of the Indian Premier League?
Akil Khan

Akil Khan

February 29, 2024

Who is the King of the Indian Premier League?

Cricket fans love debating who’s the best within the IPL. See the most successful teams and players in IPL history and what stats to look out for when gambling online on cricket.

Gambling
Tips
Responsible
Best Payment Methods For Online Gambling In India
Akil Khan

Akil Khan

December 1, 2023

Best Payment Methods For Online Gambling In India

The Indian gambling industry has become more than a fun and entertainment zone for players. The gambling gameplay showed rapid growth during the pandemic when everyone enjoyed playing games such as Poker, Rummy, Online Lottery, etc. The total revenue of the casino games market was $25.30 million in 2022 and is expected to reach $52.50 million by 2027. The CAGR growth rate is expected at 14.97%. This whopping revenue increase shows how people spent most of their time playing casino games on their desktops or mobile devices.

The casino gaming market in India supports other sectors such as Animation, IT, Virtual Gaming, etc. This market will become a billion-dollar market by 2027, minting almost $8.6 billion. This growth will include modern technology and the development of newer testing and analysis tools.

These rising figures rightly showcase how the casino industry has gained a landmark achievement in India. Hence, India has already touched the $0.82 billion figure in 2023. The growth chart will rise at lightning speed in the coming years. Casino spending is possible with the right payment methods. This insightful guide will help you learn more about deposit and withdrawal methods.

Gambling
Responsible
Is Online Gambling With Cryptocurrency Illegal In India?
Akil Khan

Akil Khan

November 30, 2023

Is Online Gambling With Cryptocurrency Illegal In India?

Bitcoin and Altcoins such as Ethereum, Litecoin, and others have entered the global market. India is also just a little behind as the cryptocurrency market is strengthening daily. The revenue made in 2023 via cryptocurrency is $222.7 million and is expected to reach $324 by 2027. The annual growth rate shown between the forecast period 2023 and 2027 will be 9.83%. However, a few legislations have been passed concerning gambling with cryptocurrency and the use of cryptocurrency, but it does not make it illegal.

So, gambling with cryptocurrency is not illegal in India, but punters still have to check for the particular legislation in their respective regions. The taxation laws concerning gambling are made strict in the country by levying 28% GST.

Indian gamblers need to understand how they can play games with cryptocurrency and whether their wins will be taxed. Let us give you a detailed sneak peek at the same.

Gambling
Responsible
GST On Online Gambling: All You Need To Know About New Tax Regulations
Gambling
Responsible
Which Indian States Have Imposed The Gambling Ban And Why?
Akil Khan

Akil Khan

November 28, 2023

Which Indian States Have Imposed The Gambling Ban And Why?

The Indian gambling scene has seen a sudden increase in games such as online gaming, casino gambling, and horse racing. The lottery is one of the significant betting games gamblers play offline and online. However, online casino gambling showed increased growth during the pandemic. People play online games such as PUBG, Fortnite, lottery betting, cricket betting, and much more. Well, a few Indian states have imposed a ban on gambling because they are of the view that gambling (online and offline) negatively affects players. The games are addictive and deprive people of their hard-earned money.

Gambling
Responsible
The Future Of Gambling In India: Explore This Roadmap For Success
Gambling
Responsible
Crucial Laws Impacting Online Casinos In India: Exploring The Public Gambling Act & IT Act
Gambling
Responsible