How can Online Gambling help the Indian Economy?

The online gambling and betting industry has recently come into its own as a giant economic entity. With more and more real-money gaming apps being used by the public and the growing popularity of sports betting and fantasy sports websites, the business of online betting is proving to be a successful venture.

So far, the Indian gambling industry has existed in a legal grey area. Since most Indian states lack any legislation that prohibits the use of online betting sites or apps, most people can bet online, without having to worry about any legal repercussions.

Obviously, this has paved the way for more start-ups and foreign investment in the sector. In the last few years, the industry has seen an exponential growth in numbers, which could spell out a positive future.

But the apprehension of state and central governments to legalize or regulate the industry and the lack of information and awareness about online betting in India are two big hurdles in the path of true progress for the sector.

How can Online Gambling help the Indian Economy?

Whether the online betting industry must be legalized or banned completely is a matter that has invited much debate. And so far, most Indian states have chosen to take their own approach in handling the legislation surrounding the activity.

However, in recent years, there have been more than a few Indian states that have wondered whether formally regulating the online gambling industry may have benefits that have yet to be utilized.

Many states like Maharashtra and Telangana have considered formally regulating the online gaming industry, which right now operates unregulated and untapped. According to estimates done by a committee report in Maharashtra, the state is losing out on almost 2500 crores annually, which could be earned by the state in the form of revenue from taxing operators.

In a post-COVID economy, where state governments are already struggling with the availability of funds, regulating and taxing the many online betting operators may be a step in the right direction.

Additionally, the growing popularity of online betting during the IPL season can be seen as an opportunity in the sector. Currently, due to the unclear laws regarding sports betting in India, foreign betting sites steal most of the traffic for IPL betting in India. However, if state governments were to allow betting on the IPL in a formal regulated capacity, many more start-ups and local Indian competitors could give competition to the international websites that allow IPL betting.

Last but not least, this boost in the local Indian economy and newer start-ups cropping up in the sector could lead to a growth in the employment opportunities in the online gaming industry. The sector would create jobs in the web development, digital payments, digital marketing, content writing, and customer service sectors, to name a few.

Of course, one of the main objectives of the government must be to protect the players who participate in the online betting industry. Having no formal regulatory authority or compliance exposes users to fraudulent transactions and betting rackets.

These unfortunate instances may be avoided by creating a regulatory authority that not only checks the credentials and compliance of each betting platform that is allowed to operate in India but also address any complaints from the users’ end.

Disclaimer:  The above-mentioned story is for information purpose only and the viewers are requested to look forward accordingly as Business Upturn does not take any responsibility of the losses that may occur in further activities of traders and/or buyers.
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