India is a promising country for the gambling business, with a large population that likes diverse entertainment, including traditional cultural amusement. However, only several local states allow for opening digital projects on their territories with rather confusing borders between the games of skill and chance.
Operators with international licences still can target Indians. Also, the situation with sports betting looks more stable and promising. However, the whole world is watching over the changes and possible improvements in the country’s iGaming sector.
Casino Market experts will tell you about the current state of the sphere, as well as its challenges and prospects for 2024. With our help, you can start a successful amusement project with a focus on a domestic or international segment.
Potential of Online Gambling in India
The niche’s popularity has skyrocketed as smartphones and the Internet became more accessible and affordable for residents. The industry has seen a CAGR of 28% from 2020 to 2023 financial years. The worth of iGaming in the Asian country reached 164.28 million INR (about 2 million USD). That is why investors, providers, operators and other interested parties across the globe keep an eye on the situation.
The segment has already attracted the attention of many technology developers and businessmen, who are willing to contribute to the sphere’s growth. However, they are confronted by insufficient regulations and an uncertain attitude of authorities towards digital amusement. For a long time, the government has focused more on increasing tax collection than stimulating economic growth via iGaming development.
2023 saw some promising changes in rules and fee politics, so this year demonstrates a rather good tendency towards accelerating the industry’s evolution. Elaborating on a complete regulation layout will take a while. However, positive shifts and attention to social gaming can lead to the sector flourishing and generating billions of dollars. Meanwhile, uncertainties in rules and unreasonable fees may significantly narrow down contributions.
Last year, India’s authorities imposed a new GST rate. Some facts about the situation:
- The freshly established tax for local iGaming companies accounted for 28%.
- The figure concerned the industry’s members as they predict slow progression and investment reduction.
- The compliance standards were partially relieved and clarified, so that brought in some hope.
- Small-sized brands are still at risk as the high rate may discourage clients and favour bigger corporations.
- The long-run influence will be determined by the Supreme Court, whose verdict can affect content classification and a taxation system.
If the currently offered GST is applied to all types of digital games, the development of the sphere may reach a dead end. There will not be significant benefits for local entrepreneurs to start new amusement projects while foreigners will have more reasons to give preference to other countries.
Besides waiting for the Court’s judgement, Indians search for other methods to advocate for the niche’s growth. A Group of Ministers from several factions insists on reconsidering the tax rate, as well as incorporating appropriate AML and similar anti-fraud tools.
Key Challenges for the Digital Sector
The government needs to revise 5 areas to help iGaming thrive and contribute to the local economy:
- General threats. The authority is now actively working on issues related to mental health, data reliability, money laundering, etc. Many important rules have already been presented, as well as self-regulation brands and organisations established.
- Player protection. Appropriate standards for businesses will also help them provide high-level security to their customers. The country needs to constantly check for and ban unlicensed casino portals and boost user awareness about illegal websites.
- Content classification. The current parameters of distinguishing games of chance from skill-based entertainment are not clear enough. Their difference affects the way of service provision and fee application, so it is an urgent aspect to be considered.
- Tax rates. Because of an unreasonable and outdated approach towards setting these parameters, the sector can end up with a downward trajectory. There may be a decrease in marketing spending, R&D investment, employment levels, etc.
- Regulatory bodies. Compliance has become more difficult for operators. The supervision system is disorganised since entrepreneurs need to balance the requirements of both central and state institutions regarding the same work aspects.
If the government refuses to change the current situation within the iGaming sector, it can turn into a grey market, which will be a loss for everyone involved in the long run.
Meanwhile, a proper revision of standards will bring benefits, such as:
- enlarging tax revenues;
- creating new job positions;
- enhancing player protection;
- growing foreign investments, etc.
Understandable content classification within the potential regulations can set transparent and simplified conditions for distinguishing and licensing diverse game categories. Such standards will prevent the appearance of misleading ads and tax avoidance.
For instance, the Information Technology Amendment Rules incorporated in 2023 have already demonstrated good results. They delivered a reliable scheme of complaint consideration. Further changes in the current system can improve the situation and attract global web gambling brands to work in a well-regulated market.
Expectations for 2024 and Beyond
The industry’s members hope this year will bring more clarity, consistency and stability in iGaming standards. The progression in terms of overall digitalisation should also be on the list of goals for 2024. The integration and active use of modern technology is another important milestone.
India can benefit a lot from innovations, such as:
- KYC modules;
- AI and machine learning;
- up-to-date payment solutions;
- blockchain and cryptocurrencies, etc.
These tools will help provide transparency and a responsible approach in the internet gambling sphere. Implementing stricter policies and compliance with ASCI standards are also important.
The sector’s future and overall growth potential will be positive if the government improves the current legal landscape. Thus, a lot of international brands and other interested parties will watch over possible changes in the digital amusement environment during 2024.
The Main Things About iGaming Regulation in India
The country has a great foundation for developing the web gambling industry. However, the authorities’ model of managing the segment should be revised and modernised. This will lead to unlocking a range of benefits for all the parties involved, including the government itself.
The sphere needs to be reconsidered in several key areas, like:
- player protection;
- a taxation system;
- game classification;
- an overall security level;
- a chain of regulatory bodies.
With an international licence, operators can still work legally in this Asian state. Also, positive tendencies for 2024 hint at the possibility of receiving good news from the local authorities soon.
Casino Market experts can help you open and scale an iGaming business in India or other famous countries. We offer franchises, White Label projects, scripts, turnkey packages, separate software components, etc.
Feel free to contact us if you need assistance with running an amusement platform or have any questions on the matter.
Have questions or want to order services?
Contact our consultants:
- e-mail: manager@casino-market.com
- Skype: support.casinosupermarket
- feedback form.
Check the information used to contact us carefully. It is necessary for your safety.
Fraudsters can use contacts that look like ours to scam customers. Therefore, we ask you to enter only the addresses that are indicated on our official website.
Be careful! Our team is not responsible for the activities of persons using similar contact details.
