The Northern Indian state of Meghalaya won’t allow residents to gamble despite new laws that permit all manner of gaming, land-based and online, according to Asia Gaming Brief.
“We came out with a Gaming Act and subsequently framed the Regulation of Gaming Rules, 2021. The government will accordingly issue licenses to operate games of skill and chance, both online and offline,” Law and Taxation Minister James P.K. Sangma told local media.
Sangma acknowledged legalized gambling would generate employment opportunities and expand tourism, but residents will not be able to place bets. Tourists and business travelers will need to prove who they are, similar to providing proof of identity for bank transactions.
Chief Minister Conrad Sangma said three provisional licenses have been allotted to operators already. The state sees gambling as a source of revenue in the aftermath of the pandemic.
In related news, a new report from the U.K. India Business Council (UKIBC) recommends changes to India’s taxes to grow the national gaming industry.
The report by the nonprofit noted that currently two states, Meghalaya and Sikkim, have tax structures friendly to the growth of the industry. It recommends a centralized taxing structural reform.
The report was based on a survey of 2,100 questionnaires distributed to operators and consumers across 15 Indian states. It looked at seven areas of the industry and at elements such as player profiles, habits, operator revenue and commissions.
It graded states for their openness to gaming on a scale of 100. Meghalaya, which recently legalized gaming, was at the top with 92.85. It seeks to become a major tourist destination to help recover from the impacts of the Covid pandemic.
The state legalized online and land-based gaming, but only foreigners are allowed to play. It has three licenses pending for online platforms.
UKIBC director Chris Heyes commented, “Meghalaya came out on top in terms of our polls, but there are many other states where we hope they will be following suit moving forward.”
The study pointed out the potential benefits in terms of government revenue and growth of the economy from gaming legalization. It noted that Sikkim, gross gaming revenue in March 2019 was INR230 million ($3,003,098), which resulted in INR50 million in annual licenses fees. Sikkim is the third-smallest state in India.
The report suggests that by legalizing sports betting Maharashtra could generate INR 124 billion in license fees and extra revenues.
The country had about 433 million online gaming users in 2021, a figure likely to increase to 657 million by 2025, said the report.
