The evolution of gambling in India has seen it transition from traditional practices to a rapidly expanding online industry, driven by widespread internet access and smartphone adoption. However, the rise of online gambling has brought about both opportunities and significant challenges, including societal issues and regulatory ambiguity.
A Tragic Tale: The Human Cost of Gambling
The darker side of gambling was tragically highlighted earlier this year when 24-year-old Sangeeta from Uttar Pradesh died by suicide. Her note blamed the pressures of creditors, which stemmed from her husband Suraj Pal mounting gambling debts. Driver in Private Company Pal reportedly borrowed large sums to bet on Indian Premier League matches between 2021 and 2023.
A Long History of Gambling
India’s gambling culture is deeply rooted in history and mythology, with references in the Mahabharata and traditional games like rummy, teen patti, and matka being integral to festivals and social gatherings. Today, technology has transformed this legacy into an online phenomenon, with platforms offering games ranging from traditional card games to virtual sports betting and casino experiences.
The Legal Quagmire
Gambling laws in India are a patchwork of state and central regulations, with most states prohibiting gambling except for lotteries and horse racing. Goa and Sikkim are the only states where casinos are legal. The Public Gambling Act of 1867, India’s central legislation, excludes “games of skill” like rummy but leaves much of the online gambling space in a legal gray area.
Some states, like Andhra Pradesh and Tamil Nadu, have banned online gambling outright, while others, like Sikkim, allow licensed operators. However, the Information Technology Act prohibits promoting gambling online, creating inconsistencies in enforcement.
The Role of Gamification
Online gambling platforms use gamification to make betting more engaging and addictive. Features such as leaderboards, rewards, daily challenges, and immersive graphics are common. Apps like Dafabet and BlueChip.io incorporate themes and community-building features, blending entertainment with gambling.
While these strategies have driven growth, they have also raised concerns about problem gambling and the increasingly blurred line between gaming and gambling.
The Way Forward: Regulation and Responsibility
India’s online gambling market, which already has over 12 million users, is projected to grow by 8.5% annually until 2027. However, this growth highlights the urgent need for comprehensive regulation.
A robust legal framework is essential to balance innovation and consumer protection. Such a framework should include:
- Licensing and taxation to bring operators into the formal economy.
- Player protection measures to prevent exploitation and promote responsible gambling.
- Clear definitions distinguishing games of skill from games of chance.
- Awareness campaigns to address societal harms and promote safe practices.
As the industry continues to evolve, striking this balance will be critical to harnessing its economic potential while safeguarding individuals and communities.
