Online gambling is a popular and lucrative activity for many Indians, who enjoy the thrill and excitement of betting on sports, casino games, and other events. However, the online gambling landscape in India has changed dramatically in recent months, as two of the biggest and most trusted platforms, bet365 and Betway, have announced their exit from the Indian market. What are the reasons behind this decision, and what are the implications for Indian gamblers? In this article, we will explore these questions and more.
The Main Reason: The 28% GST Increase
The updated tax law of India requires a 28% Goods and Services Tax (GST) from all bets placed, regardless of whether they win or lose. In the past, the tax rate was only 18% on gross gaming revenue (GGR), and this is not the full bet amount but only the difference between bets and paid-out profits.
Today's Rate
Wed 18 Dec. 2024
Bet365 and Betway have stated that they cannot afford to pay such a high tax rate on every bet and that they would rather focus on other markets where they can offer better services and value to their customers. Therefore, they have ceased trading in India and have asked their existing customers to withdraw their funds as soon as possible.
The exit of bet365 and Betway from India is not an isolated case. Many other online gambling platforms may follow suit shortly, as they may also find it difficult or impossible to operate in India under such high tax rates. Some of the platforms that are still operating in India may be able to survive or thrive in the short term, but they may also face challenges or risks in the long term. Therefore, Indian gamblers should be prepared for more changes or developments in the online gambling landscape in India in the coming months or years.
Higher Taxes: What This Means for Indian Bettors
The higher taxes imposed on online gambling platforms have a significant impact on Indian bettors as well. They affect both the costs and benefits of online gambling. On one hand, they increase the costs of online gambling. They may have to pay higher fees or charges when they use online gambling platforms, such as deposit fees, withdrawal fees, transaction fees, or currency conversion fees. These fees may reduce their returns or incentives for online gambling.
On the other hand, they decrease the benefits of online gambling. They may receive lower payouts or winnings when they use online gambling platforms, as these platforms may deduct higher taxes from their bets or winnings. They may also face lower odds or quality when they use online gambling platforms, especially for sports betting. Sports betting odds are determined by various factors, such as supply and demand, competition, risk, and profit margin. With higher taxes imposed on online gambling platforms, these platforms may have to adjust their odds to make room for more profit margin or risk management. This may result in lower odds or quality for Indian bettors.
Looking Ahead: What to Expect
With big names like bet365 and Betway exiting the Indian online gambling market, the future of online gambling in India is uncertain and challenging. Many possibilities may happen in the online gambling industry in India.
For example, more platforms may decide to exit the Indian market in the future, as they may find it too costly or risky to operate in India under such high tax rates. They may also face more legal or regulatory challenges or uncertainties in India, as different states may have different rules or policies on online gambling. Alternatively, more opportunities may arise for new or existing platforms to enter or expand in the Indian market. They may be able to fill the gap or demand left by the existing platforms. They may also be able to offer more innovative or diverse services, such as live casino games, esports betting, or cryptocurrency payments.
However, more changes or developments may also occur in the online gambling industry in India. These changes may include new tax laws, new regulations, new technologies, new trends, or new challenges. These changes may affect online gambling platforms and their customers in different ways.
Conclusion
There are still some alternatives that offer a variety of sports betting and casino games, as well as attractive bonuses and promotions. Some of the best online betting sites that you can join today are Parimatch, Dafabet, and 10CRIC Cricket. These platforms accept Indian rupees and offer a safe and satisfying online gambling experience. The future of online gambling in India is uncertain and challenging, but not hopeless or impossible. There may be some changes or developments in the online gambling landscape in India in the coming years, and we hope that they will be for the better.
