There is an undeniable high demand for online gambling in India, with the business estimated to have an annual worth of $5 billion. Despite the existence of numerous online casino platforms that allow Indians to legally engage in gambling, almost few of these sites are really located in India.
Most companies and startups in India primarily focus on offering games of skill, such as Poker and Rummy, rather than recreational casino games like slots and roulette.
The absence of Indian-based online casino enterprises and startups can be attributed to the legal obstacles, which are too costly for most entrepreneurs in India to overcome. This hindrance is not due to a lack of infrastructure or demand.
Legal obstacles faced by Indian startups in the online gambling industry
The primary obstacle faced by Indian entrepreneurs seeking to penetrate the online gaming business is the legislative framework that regulates gambling activities in India.
In India, gambling is seen as a matter under the jurisdiction of individual states. Consequently, the presence of land-based casinos is limited to states such as Goa and Sikkim, where they are legally permitted to operate. Nevertheless, the realm of internet gambling introduces a level of complexity.
Although there is no explicit legal framework governing the legality of online gambling, the current gaming legislation in India prohibits any Indian-based casino or corporation from establishing or advertising online casinos.
Nevertheless, if an online gambling enterprise is situated outside of India and acknowledges Indian players and the Indian Rupee as a form of cash, they are permitted to operate lawfully within India. Most online casino sites in India are located in India and operate under licenses from countries like Curacao and Malta, which authorize them to legally offer their services globally.
In theory, an Indian firm can establish an online casino website if it acquires an international gaming license. However, the high cost of these licenses is a substantial obstacle for most businesses seeking to revolutionize the online casino industry in India.
Existing players in the market
As previously stated in this article, there are several websites that enable players to engage in games of skill, such as Poker and Rummy, with the opportunity to win real money.
These websites are regarded lawful in India since, according to the country’s legislation, activities that involve “games of skill” are not classified as gambling and are not deemed prohibited.
In India, fantasy sports leagues like Dream11, which provide the opportunity to win real money Goldsbet india, are recognized as games of skill and are permitted to operate within the legal framework.
Is it necessary to implement regulations for internet gaming in India?
The significant popularity of online casino sites and sportsbooks like 10Cric, Betway, Royal Panda, and others serves as strong evidence of the immense potential of the online gambling business in India.
Nevertheless, due to antiquated regulations controlling the sector, it is now unfeasible to establish a genuine online casino situated in India. Consequently, Indians are left with no alternative but to engage in gambling on platforms that operate beyond the borders of India.
In the event that online gambling is subjected to regulation in India, it is plausible that numerous pioneering businesses would enter the industry, thereby enhancing the overall user experience significantly.
Many other issues associated with online gambling sites in India, such as complex payment systems, might be resolved to enhance the efficiency of the casino experience. Additionally, implementing a system where the government deducts taxes directly from the winnings at the source would streamline the tax collection process, eliminating the need for winners to declare it in their tax returns.
In general, the Indian online gaming sector may be relatively new, but it is well prepared to accommodate new participants. With a reduction in regulatory barriers, this industry has the potential to become one of the most lucrative sectors in the country in the next years. Regrettably, as long as the existing legislative barriers persist, it is probable that the majority of entrepreneurs will go for industries that offer less resistance to entry.
