According to documents reviewed by HT, the government has formed a committee to regulate online gaming and has designated a ministry to oversee it. The panel will include the CEO of the government think tank NITI Aayog. As well as secretaries from the ministries of home affairs, sports and youth affairs, information and broadcasting, electronics and information technology, and so on.
The committee has been tasked with researching global best practices and recommending a framework for a uniform regulatory mechanism. It will consider ease of doing business, compliance, a level playing field. And protecting gamers from user harms such as addiction. In addition, the panel will create a broad structure for the proposed central laws. Consult with experts, and submit a report in three months.
Online Gaming: 28% GST
A group of ministers believes that imposing a 28 percent Goods and Services Tax (GST) on online gaming would bring it in line with levies on casinos, racetracks, and gambling. It has yet to formally submit its report to the GST Council, which is the final decision-making body.
In 2020, global fantasy sports revenue is expected to be around $20.36 billion. In 2025, they are expected to reach $38.60 billion. Almost every major sport in the world has fantasy leagues linked to the dominant leagues.
State laws in the United States govern what constitutes gambling and how it is regulated. Many states consider fantasy sports to be a “game of skill”. Rather than a “game of chance,” and as such, they are exempt from gambling laws. Some states consider them to be gambling, while others do not. As a result, it leads to inconsistency in regulation.