SUMMARY
AIGF’s Roland Landers called on the government to curb the illegal betting and gambling platforms operating from outside India
Landers said these sites lead to user harm and are also adversely impacting the “legitimate” homegrown online gaming ecosystem in India
Recently, the Ministry of Information and Broadcasting and the Central Consumer Protection Authority advised influencers to refrain from endorsing betting and gambling platforms
Industry body All India Gaming Federation’s (AIGF’s) CEO Roland Landers has said that offshore illegal betting platforms are costing the national exchequer $2.5 Bn in goods and services tax (GST) revenues every year.
“Offshore illegal betting and gambling platforms are collecting deposits worth $12 Bn in a year, which implies a loss of at least $2.5 Bn in GST revenues to the government,” Landers told news agency PTI.
He said that these offshore platforms are luring users with increased marketing during the ongoing IPL season, adding that some of these sites are advertising zero tax deducted at source (TDS) or GST on bets.
As per the report, he called on the government to curb these illegal betting and gambling platforms operating from outside India. Landers also said that these sites lead to user harm and are also harming the “legitimate” homegrown online gaming ecosystem in India.
He said that many of the offshore websites are blurring the lines between legitimate and illegitimate online gaming as they are clubbing various games with betting and gambling.
“Offshore entities often harm users and users get confused between illegal and legal games. There should be a strict curb on the menace of illegal offshore betting and gambling platforms,” Landers was quoted as saying.
Batting for self regulatory organisations (SROs) to oversee the online gaming space, Landers said these bodies can help curb the offshore sites by helping players “differentiate between legitimate and illegitimate platforms”.
The comments come at a time when the government has taken a slew of steps to combat the proliferation of offshore platforms offering illegal gambling and betting services in the country.
Last year, the Centre banned and blocked access to 138 offshore betting platforms that either originate or have links to China. In addition, the Directorate General of GST Intelligence (DGGI) also issued a slew of notices to multiple such overseas platforms for allegedly laundering money and syphoning off taxes.
The Ministry of Information and Broadcasting (MIB) and the Central Consumer Protection Authority (CCPA) also issued directions and advised celebrities and influencers to refrain from endorsing betting and gambling platforms.
These offshore gambling platforms are mushrooming on the back of the GST Council’s decision, last year, to impose a 28% GST on the amount being paid at the entry level for online gaming. While the onshore online gaming platforms are bound by law to pay such dues, overseas platforms operate outside of the country and often escape regulatory scrutiny.
While the offshore platforms are required to have GST registration to operate in India, they largely do not comply with the rules.
