India Online Gambling Sector: A Rising Concern

Gambling in India has become more structured and widespread over time, particularly with the boom in online gambling.

For two years, Darshan Babu took loans from moneylenders to place bets on cricket matches, accumulating nearly $180,000 in debt. As the pressure from creditors intensified, the situation became unbearable. On March 18, Darshan’s wife, Ranjitha V, aged 24, tragically took her own life, citing the stress of mounting debts in a note.

An investigation revealed that Darshan, an engineer in Karnataka, had borrowed substantial amounts from multiple moneylenders during the Indian Premier League (IPL) tournaments from 2021 to 2023. Just a month prior to the incident, the Karnataka government had announced plans to introduce laws aimed at reducing online gambling and betting.

The state’s home minister pointed out that the central government’s 25% Goods and Services Tax (GST) on gambling revenues had inadvertently contributed to the persistence of online gambling.

Gambling’s Longstanding Presence

Gambling has a deep-rooted history in India, embedded in the nation’s cultural traditions. The Mahabharata, an ancient Indian epic, narrates the downfall of a royal family due to a fateful dice game. Over time, various forms of gambling, including rooster fights, rummy, and matka (a lottery game), became widely popular across the country, with gambling often linked to festivals and social events.

The internet has dramatically reshaped the gambling scene. With widespread smartphone use and affordable internet, online gambling platforms have flourished. A simple search on Google reveals over 22 gambling apps, driven by advances in artificial intelligence, virtual reality, and blockchain.

This shift to digital gambling presents both opportunities and risks, highlighting the need for understanding its growth and impact in India.

The Complex Legal Landscape

The laws surrounding gambling in India are intricate and vary across states. Most states prohibit gambling, with exceptions for lotteries and horse racing. Goa and Sikkim are the only states that permit casinos.

The Public Gambling Act of 1867, which prohibits “common gaming houses,” still exists, though games of skill such as rummy are excluded. Despite these regulations, illegal gambling is estimated to be a $60 billion market in India. The India India’s online gambling industry is growing, facing challenges in regulation, legality, and player protection.

sector, which currently has around 12.17 million users, is expected to grow by 8.5% annually until 2027.

India Online gambling occupies a legal gray area. While many states lack specific laws against it, Andhra Pradesh and Tamil Nadu banned online gaming in 2020. Sikkim allows online betting through licensed operators, although the Information Technology Act forbids promoting gambling activities online.

The Allure of Online Gambling

Online gambling platforms provide a variety of games, from traditional card games to casino games and sports betting. The appeal of online gambling lies in its convenience, broad selection of games, and the privacy it offers.

Gamification has played a pivotal role in boosting the popularity of online gambling. Features like leaderboards, rewards, and challenges create an engaging, addictive experience that encourages players to continue participating. Apps such as KWG Game and Bounty Game utilize point systems and daily missions to keep users invested.

Many platforms also offer bonus rounds and free spins on slot games, adding an extra layer of excitement and the possibility of big wins. Social features let users compete with friends, fostering a sense of community, while stunning graphics and sound effects enhance the immersive experience.

However, the growing reliance on gamification has raised concerns about its role in promoting problem gambling, making the distinction between gaming and gambling increasingly blurred. Striking a balance between innovation and responsible gambling will be a critical challenge for the sector moving forward.

The Need for Effective Regulation

The future of online gambling in India depends on balancing regulation and innovation.

There is a growing need for a comprehensive legal framework to tackle the unique challenges posed by online gambling. This framework should address licensing, taxation, player protection, and responsible gaming practices.

Advances in technologies like blockchain and artificial intelligence offer potential solutions to enhance transparency and security in the online gambling sector. Blockchain technology can create tamper-proof records, ensuring fairness, while AI can help identify and prevent problematic gambling behaviors using predictive analytics.

The risks associated with gambling, highlighted by figures such as Benjamin Franklin and Fyodor Dostoevsky, are even more relevant in today’s digital world, where access is easier and the stakes are higher.

India’s gambling industry has undergone a significant transformation. The careful regulation of this evolving sector is essential for safeguarding the interests of its people while harnessing its full potential.