There are several factors that players can consider in finding out the best online casinos for real money. You probably are looking at online casino website’s game offerings, list of casino bonuses, customer service, or list payment methods. That’s a smart move. However, if you want to play online casinos for real money you need to check the license and taxation scheme you’re going to go through.
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If you are an online casino player, taxes and licenses of the real money online casino might be the last thing you would consider. But if you really value your safety online, you should consider these two factors. What is the casino license? How does a casino get a license? Are you going to pay the amount for tax when you win? What consideration should you make when it comes to tax and licenses? If you plan to play in real money casinos frequently, you need to know the answer to these questions.
Online Casino License
All the best casinos online acquired a license to continue its operation. A licensed casino means that their game offerings, payment methods, and bonuses are being reviewed. This gives the player a piece of mind when inputting sensitive information to the website.
There are many ways to know if the real money online casino has a license to operate. First is by looking on the casino site’s footer page. If the casino is licensed, you’ll find the regulator seal. Click the logo that you will find. If it leads you to the regulator page, then that means the license isn’t fake. You can also check the license number which usually found on the footer or on the about us page of the casino.
Indian Government, however, doesn’t issue a casino license to any operator. While there is no law that prohibits online casinos for real money in the country, officials are discouraging players to be involved in any type of gambling.
The state of Sikkim is only the state that offers online horse betting and lotteries. In 2010, the state announced that the state will offer three online gambling licenses. This plan didn’t happen despite India being the most sought out country for online gambling.
Most Indian casinos acquire licenses from foreign regulators. International best online gaming websites are usually regulated by more than one licensing authority. But before a casino acquires a license, they must have an official presence in the jurisdiction and serve the country’s population. Moreover, they have to pay some fees and taxes.
Taxation on Indian Casinos
Since the legality of real money online casinos in India is still unclear until today, the tax situation is also blurry in the country. Taxes are generally implemented globally on casino winnings but the figures have changed over the years.
For casino winnings in India, the standard rate is 30%. This includes winnings in lotteries, crossword puzzles, races, poker games and other winnings from all sorts of betting games. The Income Tax Act, 1961 is the act that regulates income tax in India.
Online casino operators that operate offshore are required to deduct the 30% if winnings reach INR 10,000. In some cases, real money online casinos might not charge tax and allow the players to withdraw his or her full winnings. In those cases, players need to declare their winnings when their income tax return
In April 2017, the standardized goods and services tax also known as GST was rendered. This act states that casinos and distributors are chargeable with 28% on the gross amount collected as admission charge or entry fee.
Legal Indian online casinos, on the other hand, don’t fall within this group. Under GST, there is a clause that states “all other services not specified elsewhere”, and any such activity that falls within this category is subject to an 18% fee.
While the tax rate for online casino remains vague in the country, players in India should prepare to lose a portion of their winnings until they receive their payout.