Report Finds Reliability Issues among Online Gamblers in India

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A new study by Ken Research in India has revealed that around 25% of online gamblers in India experience significant problems, spanning from identity theft to issues with transactions.

The report, entitled ‘Consumer Behavior Analysis for Online Gambling Industry in India’ looked into the online gambling consumer behavior in the country, and highlighted various reliability concerns. Mainly, more than a quarter of online gambling participants faced 'challenges,' including potential risks like fraud, unauthorized transactions, and complications during fund withdrawals.

According to the study, India's varied cultural and legal landscape played a role in contributing to these challenges. It highlighted that different states in India had varying regulations regarding gambling, ranging from outright prohibition to regulation. This varied set of laws occasionally led to uncertainty for both operators and players.

Complexity of Laws

Additionally, the report suggested that only a small fraction of online gamblers possess a "thorough understanding" of industry regulations, which potentially leads to many individuals engaging with unregulated operators.

The study attributed this issue to "the complexity of the laws" and "limited access to detailed information. Since the establishment of its online gambling market, the Indian government has been at war against illegal betting operations in the state.

Last November, the Indian authorities issued blocking directives against 22 betting applications and websites for operating in its jurisdiction without approval.

GST Increased Tax

In July 2023, The Goods and Services Tax Council (GST) in India introduced a flat 28% turnover tax for online gambling, casino, and horse race betting.

In its response to the tax, the All India Gaming Federation (AIGF), the leading industry body for online gambling in India, asserted that the increased rate will make it harder for businesses to survive and could potentially drive more players towards unlicensed operators.

Growth Potential

Despite the current challenges, the study pinpointed prospects for growth. In Maharashtra and Delhi, gambling is notably engaged in by individuals aged 36 to 44 years olds. In Uttar Pradesh, it's most favored among 26 to 35-year-olds.

The report further revealed that the majority of 36 to 44-year-olds in Karnataka actively participate in online gambling, dedicating between 11 and 20 hours per week to this activity.

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