Home Casino How Is the Indian Government Losing Money with Offshore Betting Platforms?

How Is the Indian Government Losing Money with Offshore Betting Platforms?

Source: in.mashable.com

The Indian government gave two strong warnings, one to private TV stations and the other to digital news publishers and OTT platforms, telling them not to air ads for online betting sites or do surrogate marketing of online gambling sites in indian rupees for those sites. The warnings were based on data that included direct and indirect ads for betting services based in other countries.

An online betting site that doesn’t pay the government

We’re talking about online gambling companies based outside India that have a lot of money. People in India “deposit” hundreds of crores with these companies every month.

A Moneycontrol study found that the top six of these operators make around Rs 5,500 crore each month on their own. VIP-Bet Club is said to make betting suggestions based on insider information about how sports contests are fixed.

How online gambling sites make money without paying taxes

Sites where you can bet online What’s New: No offshore gambling sites pay taxes because they don’t have to. India.com says that the government is now putting on the brakes.

Online betting sites use fake promotions to avoid having to pay taxes

Source: forbes.com

New Delhi, India – On June 13, 2023, India’s Ministry of Information and Broadcasting told newspapers, commercial TV networks, and digital news publishers not to print ads for online betting platforms.

G2G Gaming said on July 24 that FanCode, owned by Dream11 and the official digital broadcaster for India’s tour of the West Indies at the time, was seen advertising FairplayNews, which is a brand name for the betting website Fairplay. Club, during the first ODI. Online betting businesses have found a way around the rules that are currently in place.

The Indian government sent out two strongly worded warnings on October 3 to private TV stations, digital news publishers, and over-the-top (OTT) platforms, telling them to stop airing ads for online betting sites and doing “surrogate marketing” for these services.

Data like direct and indirect marketing for offshore betting sites like Fairplay, PariMatch, Betway, Wolf 777, and 1xBet supported the warnings.

Online Gambling Portals Receive filled coffers and do not pay taxes

We’re talking about online gambling companies based outside India that have a lot of money. People in India “deposit” hundreds of crores with these companies every month. A Moneycontrol study found that the top six of these operators make around Rs 5,500 crore each month on their own.

ESYA Centre’s “Offshore Online Betting and Gambling in India: A Risk Assessment” is a detailed look at how VIP-Bet Club is said to make betting suggestions based on insider information about how sports contests are fixed.

Source: pymnts.com

In its report, ESYA Centre also included a screenshot of a conversation on WhatsApp with the administrator of VIP Bets. The person in charge of the VIP Bets WhatsApp account told ESYA Centre that a monthly plan could be bought for 150 Euros and that the person would be added to a betting Telegram group after payment.

The ESYA Centre investigation found that the operator suggested using digital wallets like Neteller, Skrill, or Ria. The person was also willing to take money through middlemen like Western Union.

Online betting sites use fake promotions to avoid having to pay taxes.

New Delhi, India – On June 13, 2023, India’s Ministry of Information and Broadcasting told newspapers, commercial TV networks, and digital news publishers not to print ads for online betting platforms. Online betting businesses satta matka online have found a way around the rules that are currently in place.

The Indian government sent out two strongly worded warnings on October 3 to private TV stations, digital news publishers, and over-the-top (OTT) platforms, telling them to stop airing ads for online betting sites and doing “surrogate marketing” for these services. Data like direct and indirect marketing for offshore betting sites like Fairplay, PariMatch, Betway, Wolf 777, and 1xBet supported the warnings.

We’re talking about online gambling companies based outside India that have a lot of money. People in India “deposit” hundreds of crores with these companies every month. A Moneycontrol study found that the top six of these operators make around Rs 5,500 crore each month on their own.

ESYA Centre’s “Offshore Online Betting and Gambling in India: A Risk Assessment” is a detailed look at how VIP-Bet Club is said to make betting suggestions based on insider information about how sports contests are fixed.

Where is the government money going

Source: foxbusiness.com

The Goods and Services Tax (GST) applies to betting and gambling, whether in person or online. This is because both are considered services under GST law. Online skill games have a GST of 18%, and online chance games have a GST of 28%. Not to mention that none of the offshore gambling sites pays taxes because they aren’t supposed to be there.

Even though the Indian government is cracking down on these companies by telling the platforms that give them ads to stop, it’s more like stopping a plant from growing by pulling off its leaves instead of its roots. Loopholes in the law should be closed so that these offshore companies have to pay their taxes or stop doing business in India. Advertising money should go to legal news channels and social media sites.

The government warns the sites

Warnings from the government about betting sites in other countries have been ignored. People say the Public Gaming Act of 1867 is no longer relevant today. The guidelines from the Advertising Standards Council of India (ASCI) are only written down and are rarely used. The ASCI sets the rules for self-regulation in advertising.

When it comes to online advertising, you don’t have to follow such a code, and the law doesn’t make you. The Cable Television Act, on the other hand, says that TV content has to follow the ASCI code. Another problem is that a lot of people do not follow it.

Final thought

The government seems serious about going after offshore gambling sites because it is losing tax money. Before getting tough with them, it needs to deal with much more fundamental problems. The first is knowing what is legal and what is not. For the time being, many states are passing laws that make it illegal to play gambling games online.

Source: news.wfsu.org

But because offshore players work in this grey area of the law and are backed by celebrities, nothing can be done to stop them. In the gaming world, “self-regulation” is just a fancy term.