Online gambling has become a hot-button issue in India, a country grappling with the fine balance between consumer protection and technological advancements. Recently, the government’s intervention into banning outdoor advertising for online betting platforms has again ignited this debate. This article aims to review the current state of affairs and shed light on the complexities surrounding online gambling in India.
Government Intervention in Online Gambling Advertisement
Recently, the Indian government has urged states to crack down on outdoor advertisements promoting online betting and gambling platforms, echoing an earlier advisory issued in June 2022. Government officials expressed concern that such ads could mislead consumers, especially young people, into participating in activities with financial and socio-economic risks, potentially breaching the Consumer Protection Act 2019. The government has taken particular issue with a betting platform promoting a sports league on its website, allegedly violating copyright laws.
Understanding Online Gambling
Online gambling is the practice of participating in gambling activities through the internet by placing bets or wagers on games and events to win money or prizes. Its immense popularity reflects in the burgeoning global online gambling market, valued at USD 63.53 billion in 2022, projected to grow by 11.7% from 2023 to 2030, with Asia-Pacific being the most significant player.
Various categories of online gambling exist, including casino games, sports betting, poker, and lottery. Each country has different policies and regulations governing this sector. In India, the legality of these activities varies according to individual states’ laws.
Difference Between Online Gaming and Gambling
In legal parlance, the distinction between gaming and gambling primarily depends on the skill element involved. Activities requiring skill are classified as gaming, while those based on chance fall under gambling.
Risks and Concerns Around Online Gambling
While online gambling’s allure is undeniable, it brings with it some daunting challenges. These include high addiction potential, risk of fraud due to lack of regulation, potential for money laundering, vulnerability to cyber-attacks, and social isolation risks. The complex legal environment around gambling in India, largely restricted outside select states, further compounds these issues.
The Upsides of Online Gambling
Despite the risks, online gambling has several benefits. It offers unparalleled convenience and accessibility, especially beneficial for people with disabilities or mobility issues. Additionally, it holds the potential for significant tax revenue generation for the government and job creation opportunities for Indian entrepreneurs.
Legal Stance on Online Gambling in India
As per the Public Gambling Act, 1867, India’s central law governing gambling, each state is expected to create its laws regulating gambling within their jurisdictions. While some states like Delhi, Madhya Pradesh, and Uttar Pradesh have adopted the Public Gambling Act with modifications, others like Goa, Sikkim, Daman, Meghalaya, and Nagaland have drafted region-specific laws to control public gambling.
The Way Forward
Regulating online gambling remains a tricky challenge that demands careful attention from regulators and policymakers. Awareness about state-specific laws and participation only in licensed online gambling activities are crucial steps towards fair and responsible gambling in India.
