India Now Faces a Complete Online Gambling Ban, Days After Sin Tax

India could soon impose a complete ban on all forms of online gambling in the country, with a new piece of law – The Promotion and Regulation of Online Gambling Bill – seeking to achieve just that.

India Is Moving Closer to Imposing a Complete Ban on Gambling

The draft bill, which has been approved by the Cabinet, is yet to be enforced, but should it be, as are current expectations, it would immediately shutter several established sectors, including sweepstakes and social casinos, as well as skill-based gaming.

Similarly, the bill also proposes penalties for offenders. Penalties for breaching the law would include up to three years in prison for operators, as well as a financial penalty of around $100,000. Gambling ads would also have to be removed from all applicable media, including physical advertising, radio, television, and digital channels, such as social media.

Banks will similarly have to enforce strict restrictions on monetary transactions, excluding financial payments. There is no clear reason why India is pushing so hard against the gambling sector at a time when unregulated operators continue to successfully target players locally.

Even If a Ban Isn’t Adopted, More Tax Could Be on the Cards

Rather, the country ought to adopt an approach that focuses on regulation and ensures that offshore gambling is kept at bay. If India chooses to blanket-ban, it will ultimately empower the black market and push any player that has no alternative into it.

Even if the gambling industry is not killed, it would be subjected to a 40% goods and services tax, which is up from the current 28%.

India has proven a hardliner in applying gambling laws, but all available evidence suggests that these draconian measures are coming from a place of antagonizing the regulated sector rather than analyzing the illegal gambling market and acting against it.

Other jurisdictions, including the Netherlands, have admitted that by increasing taxes and banning the regulated market, player protection measures fray.