The government exchequer experiences a whopping loss of $2.5 billion (Rs 20,897.08 crore) every year in the form of Goods and Services Tax (GST) from foreign companies involved in illegal betting and gambling. Gaming industry body All India Gaming Federation (AIGF) has demanded immediate action from the central government to curb such illegal foreign platforms.
AIGF CEO Roland Landers said that foreign companies associate various sports with illegal betting and gambling. This leaves users unable to distinguish between a legal game and an illegal game. In this way, foreign companies involved in illegal betting and gambling are deceiving users. This may also harm the legitimate industry in India.
Landers said, illegal foreign betting and betting platforms raise an amount of $12 billion (one billion rupees) a year. This means the government is losing at least $2.5 billion a year in GST revenue.
Posting about GST-TDS openly
The foreign illegal gaming companies have sharply increased advertisements during the current IPL season to lure users, the organization’s CEO said. Many of these companies are showing so much courage that they are openly promoting on their platform that there will be no GST or TDS. Foreign companies often offend users , said Landers. They are confusing legitimate and illegitimate gaming companies and it is necessary to take strict measures to save users from their clutches.
The SRO model will help prevent danger
The gaming body says the government should accelerate models such as self-regulatory organizations (SROs) to help curb the threat of illegal platforms. Foreign organizations do not have officers in India. Checking through an organization like an SRO can help distinguish between legitimate and illegitimate platforms.
There is no updated information about the app yet
The government proposed to bring in SROs, but this could not be done within the stipulated time limit of 90 days. Several companies related to the industry have submitted an application for its establishment. Landers was told that AIGF did not receive updated information about the applications submitted by the companies.
