Simple Calculations over Publicly Available Data Reveal an Astounding Reality
Gathering data from publicly available reports on India by renowned global financial advisories KPMG and Deloitte, the research team at SevenJackpots added some simple calculations and saw that the country’s betting and gambling market has the potential to be bringing up to an astounding INR 9 lakh crore in direct tax revenues annually by FY 2027-28.
That, of course, is if gambling and betting activities were pushed out of the grey zones and black market they inhabit now, and into the sunlight of heavily regulated business.
Just like in the majority of mature economies around the world, the researchers note in their recent study dedicated to “The Benefits and Prospects of Regulated Gambling in India”.
The exemplary calculation of the direct tax effect that could be expected from regulating gaming in Bharat do not even include additional benefits for the economy such as high-skill job creation, emergence of startups and thriving of various supporting industries, attraction of Foreign Direct Investments (FDI), more tourism, revenues from licensing fees, and so on.
Which Games will Contribute the Biggest Tax Revenues?
Looking deeper into the tax revenue side of things, another research paper by the SevenJackpots analysts team provides insights into which of the most popular games of chance can be expected to become the biggest contributors to state and union coffers.
The paper named “Top Game Shows and Live Casino Classics Captivate India” is based on analysis of primary data on aggregate active user visits and turnovers registered between January 1 and October 31, 2022 on a popular Indian online casino platform located at https://casinodays.com/in.
The analysed internal data shows somewhat surprising results: traditional Asian and Indian games like Andar Bahar and Sic Bo have stepped back and been replaced in the top positions by classic Western casino games like roulette and blackjack.
And Western games in their turn have been outperformed by game shows – live adaptations of evergreen, as it turns out, TV show formats like “Deal or No Deal” and “The Wheel of Fortune”.
Game shows account for 34.48 percent of registered operator turnover for the analysed period, followed by roulette games with 22.91 percent, blackjack with 16.11 percent, baccarat with a result of 7.45 percent, and slots with 4.59 percent.
The first Asian title – Sic Bo, comes only in sixth position with a turnover share of 3.06 percent, closely followed by Andar Bahar with 2.97 percent. Teen Patti shows up further down the chart with 1.67 percent.
Though Impressive, Potential Tax Revenues are not the Major Benefit from Regulating Gaming
The SevenJackpots INR 9 lakh crore calculation is intended to serve as a more practical example of the benefits that India can derive from regulating gambling and betting instead of basing policy making in the field solely on moralistic considerations.
Tax revenues are not even to be considered a major benefit, even though an increase of such a scale can do a lot in welfare and noticeably raise the standard of living of Indians.
The main focus of any such regulatory changes should be public safety and health, and this is exactly the case with regulations in jurisdictions with mature economies like the UK, Sweden, Denmark, Italy and many others, which all revolve around responsible gaming policies and practices, as the authors of the study point out.
Regulation means rules, and combining these rules with responsible gaming measures can effectively lower the societal costs associated with gambling and betting like addictions and debts.
Such measures introducing limits on deposits, spending, and log-in times, establishing a national-wide self-exclusion and blacklist mechanisms, obligating operators to verify customer identities, bar minors and monitor adults for signs of problem gambling.
Online gambling platforms in regulated markets are also required to provide fast and easy access to helplines and various kinds of support, including by mental health professionals, to those in need, etc.
Raising the level of public health will further raise tax revenues, just by avoiding so much unnecessary losses of human and national potential that are currently caused by illegal or offshore gambling.
