The British-Indian business lobby has rated Meghalaya as the top online gaming-friendly State in light of its recent legalization of the industry. Local authorities aim to become a gambling hub, surpassing Sikkim.
However, the Union needs a clear nation-wide legislative framework on the subject, experts insist. This includes licensing regimes but also tax reform and business incentives.
Meghalaya Seeks to Harness Online Gaming Potential
The UK – India Business Council (UKIBC) has recently presented its in-depth report on online gaming legislation in the context of Meghalaya’s regulation of the sector. The business advisory group has conducted a questionnaire to support its findings, pooling gaming operators and local players in 15 different Indian states.
The survey looks at player habits and profiles, operator efficiency, commission and gaming revenues. The resulting index sees Meghalaya rate first in the nation (with 93.85 out of 100 possible points), mostly as a result of last year’s Online Gaming Regulation adopted by regional lawmakers.
Meghalaya legalized all real money gaming, from sports betting to Indian online casino and lotteries. Authorities are hoping to make their jurisdiction a major gaming hub and make up for post-Covid slumps in tourism and agriculture.
Land-based gambling has also been declared legal in the, although locals will likely not be admitted to brick-and-mortar casinos, if and when such are built. All provisional license applications so far have been for online operations, the local government has confirmed.
Implications of Regulated Gaming Markets for Other States
Sikkim is the other relevant North-eastern jurisdiction which has an established reputation for real-money gaming. It came second in UKIBC’s Index, with a score of 85.71. In comparison, Andhra Pradesh was bottom of the list with merely 7.14 (and only horse racing bets explicitly regulated on its territory).
Around half of all states run their own online lottery in India, making it the most popular real-money game of all. Many local governments, however, have looked up to Goa, Sikkim and recently Meghalaya for inspiration and empirical evidence of the benefits of regulating the industry, the UKIBC director Chris Heyes pointed out.
The significant potential of online gaming for the local economy is directly felt by legitimate gaming businesses when allowed to operate. Yet licensing fees, GST and direct taxation revenue ensure positive economic spillovers into public funds and welfare programs. Indirect implications for permissive states include more financing for grassroots sports, health and education campaigns.
With an estimated 433 million online gamers in India (according to 2021 KPMG data), the market yields annual revenues of at least Rs 30,000 crore. State-by-state engagement makes both companies and consumer groups less efficient, restricting industry growth.
The Central government would do well to step in, decide upon a national legal framework and streamline taxation. The latter aspect regards mostly GST being too aggressive and making companies less competitive against black-market operators. Levies on total revenues are more substantial and fair, the UKIBC reminds.
Establishing a level playing field for the entire online gaming industry would also make it more attractive for both local and foreign investors. Admittedly, that is precisely what the UKIBC stands for, at the end of the day.
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