Real-money gaming (RMG) companies in India are worried about the rapid growth of illegal offshore gambling sites.
Indian RMG firms like Dream11 and PokerBaazi are legal, but face a high 28% GST, making them less competitive.
Offshore sites don't pay any taxes, use "mule" bank accounts to hide transactions, and are hard to regulate.
These illegal sites are growing fast, at a compound annual growth rate (CAGR) of 30%, while the legal industry's growth has slowed.
The illegal betting market is estimated to be very large.
Despite arguments about lost tax revenue, the government hasn't lowered taxes for legal RMG companies.
The RMG industry is seeing consolidation, with larger firms acquiring smaller ones.
Government regulations on RMG are currently stalled.
The legal RMG industry is trying to improve its image through self-regulation and studies.
COMMENTS