India stands to gain Rs 33 lakh crore in 5 years from regulated gambling

November 26, 2021 Earnings & Filings Industry Updates

Regulated online gaming can bring in Rs 6.60 lakh crore annually
The Indian betting market grew about 7 percent between 2012 and 2018, reaching an estimated Rs 9.5 lakh crore ($130 billion), according to a 2019 KPMG report.

Online gaming is estimated to be worth Rs. 20.5 crore , but while it is much smaller, the segment is forecast to grow by as much as 40 percent by the end of 2021 and represent 10 percent of India’s Media and Entertainment economy.

These figures are important, particularly since imposing taxes on a popular market is a necessary consideration for many jurisdictions. In India’s case, the country is already considered to be the second largest internet consumer in the world—next only to China—with more than 560 million internet users.

To put things in better perspective, analysts at SevenJackpots mapped out the tax revenue that the government stands to gain based on the stated market size calculated against the current Bharat taxation system. They found that, “Based on the above market size, online game operators would end up paying around Rs 53,000 crore in annual taxes by 2025-2026. Taxing all gambling in the country might bring in up to Rs 6,60,000 crore in the same year. The Centre currently collects only a fraction of that.”