The Indian government is working on a framework to legalize online casinos at the National Level. The country will permit both slots and card games, opening a wide window of opportunity for investors from all around the world.
India is home to 568 million online gambling customers, making it the world’s biggest iGaming market. Although the government has yet to license online casinos, state-based casinos in Goa, Sikkim, and Nagaland generate over $3 billion annually.
In this article, we’ll delve deeper into the economic impact of Indian online casinos. Let’s get started.
Job Creation
Online casinos could add more than 50,000 jobs to the Indian economy. Gambling businesses offer specialist jobs for marketers, web developers, accountants, information security experts, and managers.
They also provide employment opportunities to casino dealers, roulette croupiers, customer support agents, and IT specialists. Beyond in-house employees, casinos offer employment to digital marketers, software providers, Fintech company workers, and freelance content creators.
Although online casinos don’t employ as many people as their land-based counterparts, they create high-paying jobs. The average online casino employee earns $83,994 according to salary.com.
New casinos in India have access to a large number of skilled and non-skilled employees. They don’t need to outsource web development, digital banking, customer services, or management work to offshore businesses. They can work with tech experts in Bengaluru, Mumbai, Karnataka, or Kolkata.
Tax Revenue
In many countries with large online gambling markets, online casinos pay up to $1 billion annually in taxes. Take the UK as an example. Last year, remote gambling businesses paid £1 billion (100 crore) in taxes.
In the US, online casinos pay taxes to state authorities. New Jersey, the biggest online casino market in the country, generates over $500 million in taxes from Internet gambling sites.
In light of that information, India stands to generate more tax income after legalizing online casinos. It could collect as much as 100 crore every year from operators depending on how successful iGaming becomes once legalized countrywide.
For the uninitiated, iGaming regulation is in its initial stages. The government hasn’t decided on a tax rate yet. It has also not announced the number of online casinos it plans to license this year.
Promoting Business Growth
Online casinos promote local businesses, which leads to both job creation and revenue growth. Although iGaming sites conduct most of their work online, they spend a lot of money promoting local businesses.
Most casino sites don’t own the slot machines and card games they offer. They create these games with the help of independent software providers. They also rely on third-party financial service providers to facilitate deposits and withdrawals.
Additionally, gambling businesses always reinvest their profits to bolster growth. This results in a rise in the industry’s overall revenues and higher taxes for the government.
Experts predict that online gambling could generate as much as $10 billion in the next five years. This estimation could grow even higher depending on whether locally licensed casinos will succeed in suppressing black market operators.
Creation of New Ancillary Businesses
Online casinos require a specific set of services that will grow in demand if India commercializes online gambling. Let’s start with software developers. Many game developers in India focus on mobile video games even though they can design games of chance.
If the government permits online casinos, new startups that can create slot machines and card software will emerge. India could turn into a hub for creating online gambling software.
The iGaming industry has no shortage of choices in banking. It can work with card companies, mobile wallets, cryptocurrencies, and bank payment providers.
However, new operators might need to seek international providers when it comes to white labeling. Additional businesses iGaming sites might help build include customer service providers, mobile app studios, and digital marketing companies.
Creating New Millionaires
Although online gambling is not a legitimate career choice, some people make millions of dollars playing slots and card games. Online slots are the easiest games you can play to become a millionaire.
Some of these games come with progressive jackpots that pay up to $20 million to lucky winners. For clarity, slot machines are based on pure luck. You can’t use tricks to hit the jackpot in Mega Moolah. Neither can you rely on experience.
With roulette and craps, luck plays a crucial role in dictating your chances of success. However, you need adequate skills to succeed in poker and baccarat.
How much money do you need to bet to win big? Some of the world’s luckiest online casino players had small budgets. For example, the British ex-soldier who won nearly $20 million in 2015 has a budget of 10 cents per reel.
As mentioned, gambling shouldn’t be a means of work. Yes, some people make a living through gambling. However, the percentage of successful gamblers is so small that it is not worth it. Casino games are best played for entertainment.
Fueling Technological Development
Online casinos are some of the biggest consumers of new technologies. In fact, these businesses spend a lot of money funding research about innovations that could advance iGaming.
Online gambling companies rely on technological advancements for their growth. Look at mobile gaming as an example. Mobile casinos elevated iGaming to global success in the last decade.
When it comes to graphics, casinos with high-quality games tend to attract more people than sites with outdated games. The same case applies to bonuses, payments, and customer service.
If one casino features live chatting while another one only supports phone calls, people will choose the site where they can chat. Nowadays, casinos are investing in blockchain and VR to offer futuristic experiences to players.
In Conclusion
Legal online gambling will have a positive effect on the Indian economy. First, it will add revenues for casinos. This will translate to higher taxes for the government, job creation, and new partnerships.
The Indian government has not yet announced the number of casinos it plans to license. It has also not talked about its taxation policy. Once this information is out, experts will estimate the amount of revenue iGaming could generate for the country.