India's current presidency over the G20 is bringing immense prestige to the nation, especially with the upcoming G20 Leaders' Summit to be held in New Delhi over the weekend.
This momentous event marks a significant achievement for India, as Bharat joins the ranks of nations that have had the honour of hosting this global gathering.
As an honourable host to the world's largest and most influential economies convene, India has an exceptional opportunity to showcase its leadership on critical global issues.
However, amid the grandeur and prestige, there is one glaring problem that cannot be ignored—a topic that has yet to find clarity within India: gambling and betting regulations.
While the G20 nations have largely addressed their stances on gambling and betting, India stands out as the sole member with an ambiguous position on this matter, as highlighted by Felicia Wijkander, Chief Editor of SevenJackpots and veteran casino industry expert, in her latest opinion article where she shares some critical concerns.
The implications of Bharat's ambiguity are far-reaching, with significant financial repercussions both within the country and abroad.
India's illegal gambling and sports betting market was estimated at a staggering $88 billion in 2012, and by 2018 it had reached $130 billion by 2018, according to KPMG data. Such a massive black market is a natural breeding ground for money laundering and criminal activities, which threaten the integrity of the global financial system.
The Mahadev online gambling app scandal, with its ties to Dubai-based operators, exemplifies the extent of the issue. The Enforcement Directorate (ED) has initiated the process of issuing a Red Corner Notice against the individuals allegedly involved, moving the case on to international implications of India's lax stance on gambling.
Notably, while the United Arab Emirates (UAE) is not a G20 member, it has received consistent invitations to the G20 Leaders' Summits since the 2020 Summit, hosted virtually by Saudi Arabia.
Across the G20, nations have adopted two distinct approaches to gambling: regulation or prohibition, Felicia Wijkander explains in her editorial article.
Some countries, like the United Kingdom, have established stringent regulations that have effectively reduced gambling addiction rates to as low as 0.5%. Others, like Saudi Arabia and Indonesia, have banned gambling entirely due to religious reasons.
In the remaining group of prohibiting countries, "where politics have decided the illegality of gambling (South Korea and China), gambling problems are higher than within European, regulated countries (5.5% for South Korea, 2.5-4% for China)," Mrs. Wijkander points out.
On this backdrop, India's approach to gambling can be described as "two-faced." On one hand, the government vaguely bans "wagering on any outcome," while on the other hand, it expects substantial revenues from taxing gambling at 28% GST on the full face value of bets and imposing a 30% Tax Deducted at Source (TDS) on winnings.
Responsibility for regulating gambling has been shifted to private self-regulatory organizations, which, without comprehensive national legislation, can do little more than classify games as skill or chance-based. This approach fails to address the underlying serious issues associated with gambling, such as addiction, money laundering, online security, fraud, and underage gambling.
As India assumes its presidency over the G20 and revels in the prestige and global influence the global forum brings, it must also take responsibility for addressing the "elephant in the room" that is its lack of regulations or even a clear stance on gambling and betting.
The nation has the opportunity to lead by example, creating an environment of responsible gaming and betting while combating money laundering, terror financing, online security threats, fraud, underage gambling, and addiction.
Uday Walia, Partner at the law firm Touchstone Partners, has urged India to step up and regulate gambling and betting. It's not only about safeguarding the well-being of its citizens, but also about preserving the integrity of the global financial system.
As India showcases its ancient and modern history, culture, and contributions to the world during its G20 presidency, Bharat should also demonstrate its commitment to responsible gaming and the elimination of criminal activities associated with the activity.
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