New Delhi:
As Cricket World Cup 2023 gains momentum, illegal gambling activities are also gaining momentum, with millions of rupees being invested through informal routes, leading to a loss of around Rs 2 lakh crore to the tax authorities, a report said.
According to the Think Change Forum (TCF) report, the illegal sports betting market receives an estimated inflow of Rs 8,20,000 crore (USD 100 billion) per year from India.
Factors such as the growth of digital infrastructure, the use of smartphones and the expansion of sporting events have contributed to this type of influx, the report said.
Despite legal restrictions, the illegal betting and gambling market in India has shown remarkable growth, the report said.
According to the report, with a baseline of estimated deposits of Rs 8,20,000 crore for betting at the current GST rate of 28 percent, India loses Rs 2,29,600 crore per year.
To curtail such activities, the report suggested strict implementation of the new GST regime by setting up a task force to monitor illegal offshore gambling activities and force offshore operators to register in India to stem the outflow from legal gaming platforms to protect offshore platforms.
Without such strict measures, the new regime could lead to a diversion of growth from legal gambling businesses to illegal gambling platforms and offshore operators, resulting in significant tax losses for the government, the report said.
In India, cricket dominates, with the Indian Premier League (IPL) being a major driver of gambling activity. According to estimates, more than 140 million people in India regularly participate in betting and betting and this number shoots up to 370 million during the IPL.
The report highlights that a ban on betting and gambling transactions under India’s exchange control regulations is pushing offshore gambling companies to use covert methods to move money both within and outside the country, the report said.
Funds are channeled through mechanisms such as hawala, cryptocurrencies and other illegal channels, posing a threat to the country’s financial stability. These diverted funds can finance illegal activities, undermining public order and national security.
According to the report, there are more than 75 betting and betting sites specifically targeting the Indian population, many of which continue to operate despite legal bans.
To further attract Indian users, they say, they have secured the support of popular Bollywood actors and sports figures as their brand ambassadors.
Delay in the formation of self-regulatory organizations (SROs) will cause illegal offshore gambling sites to mushroom, as without them regulators will have no authoritative tool to classify legal and illegal operators, it added.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)