Amid the fervor of the Cricket World Cup 2023, illegal betting activities have surged across India, with crores of rupees funneling into the industry. A report from India Change Forum has disclosed that over 340 million Indians partake in betting during significant events such as the Indian Premier League. The report also flags the rapid growth of offshore illegal betting in India following a recent 28% tax imposition by the GST council.

Despite regulatory restrictions, India’s betting and gambling market has witnessed remarkable expansion. The Indian betting market (online and offline combined) was estimated at USD 130 billion in 2018, with a CAGR of 7% from 2012 to 2018. Cricket betting predominates this sector, with approximately USD 200 million wagered on each Indian cricket one-day international match. On a global scale, the sports betting market is thriving, valued at USD 70.23 billion in 2021, with an expected CAGR of 11.7% over the past decade.

Contributing to this growth are factors like the development of digital infrastructure and increased smartphone usage. The report reveals staggering statistics, stating that cricket dominates sports betting in India, accounting for 80% to 90% of sports betting revenues. The cricket betting industry is projected to surpass $2 billion by the end of 2023, and during major events like the Indian Premier League (IPL), more than 340 million Indians are reported to participate in betting.

Experts anticipate that India’s online gambling market will experience an annual growth rate of 8.59% from 2023 to 2027, with an estimated 12.17 million users in the market by 2027. This projection suggests an average revenue per user in India’s online gambling market may reach $291.83. Online gambling has witnessed a 40% surge during the COVID-19 lockdown, driven by increased mobile and internet penetration.

Notably, during the lockdown years of 2020 and 2021, India accounted for 15% of global gambling traffic. The GST council recently imposed a 28% GST on online gaming and betting. The report highlights a concerning outcome of this tax policy – the potential rise of illegal offshore betting. The size of the illegal offshore betting market is estimated at Rs 8,20,000 crores, which is approximately 100 billion USD. Under the new GST regime, this market is expected to grow at an alarming annual rate of 30%.

The report indicates that the exponential growth of the illegal offshore betting industry will result in significant revenue losses for the government. By 2026, the legal industry is expected to lose revenue totaling INR 18,01,540 crores for offshore betting and gambling platforms, resulting in a corresponding tax loss of approximately INR 7,50,000 crores for the government.

Around 75 betting and gambling sites are estimated to target Indian citizens, with many employing aggressive promotional campaigns that promise no GST or taxes on winnings.

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