What’s happening in India’s iGaming market? In this India iGaming news catch-up SPICE India is back, and iGaming tax is on the horizon! (Image from unsplash.com)
In the latest iGaming headlines for India, the 4th Edition of SPICE India announcement is now confirmed. Plus, there’s more news covering the possible introduction of a nationwide online gambling licence with iGaming taxation the topic of the country’s latest gossip.
However, it seems the government is at a stalemate with how to tax iGaming operators. This leaves 2 big questions for domestic and overseas entities. What will the taxes be? And when will regulation finally come into play?
The tax issue is one everyone is keeping a close eye on because its confirmation will play a major role for decision-makers at overseas online casinos. That being, are the tax rates going to limit success, or will they be reasonable enough to successfully operate a legal online casino in India from abroad?
Find more in-depth coverage of both these stories below!
SPICE India 2023 (1-3 March 2023)
When SPICE India 2022 hit the Casinoplusbonus news headlines, the report covered Endorphina’s Developer of the Year award. In another annual event, the software provider is and will again look to take down yet another industry award. And what better place to win recognition than one of the most populated countries in the world where iGaming is kicking off big time!
If you were wondering, SPICE stands for ‘Strategic Platform for iGaming Conference & Exhibition’. The event, which will take place over 3 days (1 to 3 March 2023), aims to focus on regional online gambling topics and serve as a networking platform connecting operators and suppliers. Online gambling brands from across the globe will showcase their exhibition stands and take part in talks while leading industry figures will host Q&A sessions. To finish the proceedings on day 3, there is an iGaming award ceremony, and then attendees can partake in a poker game.
One of the key objectives this year is to look at lessons that operators, regulators, and suppliers can learn from other countries with successful, and failed, iGaming regulatory frameworks, and apply this to India. Furthermore, this year’s SPICE India is probably going to be one of the most serious ever held with plenty of conversation surrounding licensing and rules that are almost certainly coming to India in 2023. Another talking point that will arise is the current dispute between the All India Gaming Federation (AIGF) in support of online gambling and the Tamil Nadu state government’s handling of a ban placed on games of chance, which the former ruled as unconstitutional.
On top of this, I am sure heavy discussions will surround the new draft for a regulatory authority put forward by the IT Ministry. If the relevant lawmakers attend this year’s SPICE India event, it will probably be a useful outing because there will be no shortage of iGaming suppliers and operators that can offer their advice.
When and where is the event? The event is once again in the Goa Marriott Resort & Spa in India. And this year’s processions will take place between 1 – 3 March 2023 with awards dished out on the final day.
India Panel Still Not Reached A Decision on iGaming Tax
According to a report by Reuters, a panel of finance ministers has had the uphill task of submitting research findings in order to form a system that will levy taxes from iGaming companies in the booming online casino industry in India. Some topics the panel has been mulling over for several weeks include how to set levies on various online gambling markets and whether to apply tax to casino revenues or profits.
The expected deadline was 17 December whereby a meeting with the goods and services tax (GST) council would finalise the matter. However, it appears the original date organised to discuss the topic is a no-go. This will possibly set back completion to 2023. The GST cannot rule without the report because any decisions made are dependent on the completed taxation document.
Ireland recently faced the same situation but has solved its taxation conundrum and now confirms its new licensing consortium is coming in 2023. Many of the US states yet to legalise online gambling are also facing the same issue. In fact, if you look back at all the countries that have already formed domestic iGaming licensing and taxation laws, they also struggled in this department prior to going live. India is no different and going through the same motions making sure it is precise when it comes to correctly and fairly taxing online casinos currently operating in the country. Similar tax laws will also affect overseas entities when the inevitable nationwide online gambling authority comes into action.
Right now, the iGaming industry in India could reach a staggering ₹ 550 billion (€ 6.2 billion) by 2026. In comparison, the UK boasts £ 14 billion, but its online gambling market is worth £ 7 billion (€ 8.1 billion). In time, and with the correct regulations and taxation, India’s online casino and sports betting arena will predictably overtake the UK.
How are tax issues affecting overseas operators? You will find all the online casinos via our iGaming platforms for India portal are overseas operations. Many will look to see how the government implements taxes before deciding whether to prepare for an iGaming licence application when it becomes available.
Key Points from India’s iGaming Tax Saga
- Taxation report likely delayed until Q1 2023
- Report not ready for GST council meeting on iGaming tax
- No decision on how to tax online gambling in India
- Indecisiveness on whether federal tax should apply to profits or revenue
- India’s iGaming industry worth ₹ 550 billion by 2026
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