AIGF Reports $2.5 Billion GST Loss to Exchequer from illegal, betting firms, Urges Swift Government Action

By: Admin
April 19, 2024
Categories: GST Recent News
4 Min Read

The All India Gaming Federation (AIGF) has reported that illegal offshore betting and gambling operations are causing a significant financial loss to the country’s treasury, estimated at USD 2.5 billion yearly. The AIGF’s CEO highlighted the problem posed by these offshore entities, which often combine various games with illegal betting and gambling activities, leading to confusion among users over what is legal and what isn’t. This confusion, according to him, not only harms users but also negatively impacts India’s lawful gaming industry.

He pointed out that these illicit platforms manage to collect around USD 12 billion in deposits annually, resulting in a substantial loss of GST revenue, estimated at no less than USD 2.5 billion. The CEO also noted an increase in advertising by these platforms during the current IPL season, with some even openly boasting about the absence of GST or TDS on their operations.

The CEO called for stringent measures to tackle the issue of illegal offshore betting and gambling platforms, emphasizing the harm they cause to users and the difficulty in distinguishing between legal and illegal gaming options. He advocated for the quick implementation of structures like the Self Regulatory Organisation (SRO) by the government to help combat this issue. He remarked that these offshore entities, which have no official presence in India and declare themselves as illegal, could be better regulated through scrutiny by an SRO-like body, thus aiding in the identification of legitimate versus illegitimate platforms.

Despite plans to establish an SRO within a 90-day timeframe, the government has yet to accomplish this. The AIGF CEO mentioned that while some industry members have applied to create an SRO, there has been no progress or updates on these applications thus far.