The importance of licenses and taxes cannot be understated, even when engaging in something that is purely entertainment-based. The rise of the online casino sector and the ability for more people to use mobile devices to engage means that government officials are ensuring the bureaucracy is above board and in place. But what considerations do you need to make when it comes to tax and licenses when using online casinos in India?
A casino license is important, no matter where the site is in the world. It ensures that the site is protected and that customers have peace of mind about inputting sensitive financial information and exchanging money. As such, many customers may like to know the license of the casino. Licenses aren’t readily given out to casinos in India – with horse racing and the lottery being the major methods of gambling. But those who want to engage with other casinos worldwide may want to ensure the site has a license.
Knowing whether a site is licensed or not could be a differential factor in customers choosing which site they want to engage with. For example, CasinoWings only reviews licensed sites, so using an aggregator like that means that you are confident that any site chosen will be above board. All the sites listed are reviewed for their gameplay offering, payment methods, and welcome bonuses are licensed, giving customers peace of mind.
The issue with an unlicensed site might not be obvious during the gameplay or the navigation of the site, but it could mean that there are issues with payment (deposits and withdrawals) or with the customer service. If the site isn’t licensed it cannot legally conduct its business.
For casino winnings in India, there is a tax levy that needs to be paid. This levy means that winnings are considered a taxable income. The standard rate is 30%, which includes most gambling and even things like crossword puzzles. Offshore based casinos deduct the 30% if winnings are greater than INR 10,000. Knowing where you stand legally with tax is important as each country deals with income and winnings differently. Some may even consider such winnings as untaxable (Austria and Canada, for example).
The last thing you want to happen is to have a bill creep up on you for something you didn’t even know was taxable. Equally, you don’t want to find a jackpot has been unceremoniously cut short due to tax stipulations you weren’t aware of. It’s always best to ensure you know the law and how capital you are in possession of is seen in terms of tax. Knowing where you stand will make filing your income tax return easier.
For those engaging with online casino sites, taxes and licenses may be the last thing on your mind. But they should be considered, especially if it’s a pastime you plan to indulge in more frequently. It’s best to ensure you fully know the tax status of any winnings and that the casino you are playing on has its license.