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Laws & Regulations governing Online Gaming in India

Mansi Kukreja
Mansi Kukreja
  • Apr 11, 2023
  • 9 min to read
Laws & Regulations governing Online Gaming in India Kukreja

Introduction Online gaming has grown exponentially in India over the last decade, fuelling the growth of a multi-billion dollar industry. The industry has the potential to become one of the largest in the world, with an estimated 1.2 billion players worldwide. However, with the rapid growth of the industry, serious concerns have been raised about the lack of regulation and oversight of online gaming. This article will explore the laws and regulations governing online gaming in India and the implications for the industry. Definition of Online Gaming Online gaming is broadly defined as the use of a computer or other electronic device to play a game or participate in an online competition. This includes games of chance and skill, such as poker, blackjack, bingo, and slots. Online gaming also includes fantasy sports, electronic sports (e-sports) and virtual sports. Regulatory Framework In India, online gaming is largely unregulated. This is due to the lack of clear laws and regulations governing online gaming. The Indian government has taken some steps to regulate online gaming, such as the Information Technology Act of 2000, which prohibits online gambling. However, this law is largely unenforceable, as it does not address the issue of online gaming specifically. The only legal framework for online gaming in India is the Public Gaming Act of 1867. This law was enacted to regulate physical gambling activities, and does not apply to online gaming. As such, online gaming remains largely unregulated in India. Taxation The taxation of online gaming revenues is an important issue for the industry. In India, online gaming is subject to the same taxes as other forms of gambling, such as casinos. This includes income tax, service tax, value-added tax (VAT), and entertainment tax. The taxation of online gaming revenues is designed to discourage people from engaging in online gaming activities. This is done by making it more expensive for players to participate in online gaming activities, thus reducing the potential profits for operators. Implications The lack of regulation and taxation of online gaming in India has serious implications for the industry. Without proper regulation, operators are able to take advantage of players, offering unfair and potentially dangerous games. This can lead to players losing money without any recourse. Furthermore, without taxation, operators are able to avoid paying their fair share of taxes. This reduces the amount of revenue the government is able to collect from the industry, which could be used to fund public services and infrastructure. Conclusion Online gaming in India is largely unregulated and untaxed. This has serious implications for the industry and its players. Without proper regulation and taxation, operators are able to take advantage of players and avoid paying their fair share of taxes. The Indian government must take steps to regulate and tax online gaming in order to ensure a fair and safe gaming environment for players.

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Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

Blog Comment
Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

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