The Rise of Online Betting in India: A Digital Gold Rush
– By Manvay Rawat
In the ever-evolving digital world, online betting has successfully garnered the attention of many. India, one of the fastest growing economies of the world, is no stranger to this rising trend with millions of youth placing online bets every minute from the comfort of their homes. The revenue in the Online Sports Betting market in India is projected to reach a staggering $1.97bn in 2024. With no clear laws at the national level, this rising concern is a gray area that poses questions circling our society that remain unanswered.
Betting in India has its roots in the colonial era with a very long history. Evidence of gambling dates back centuries. British colonial rule introduced stricter regulations, culminating in the Public Gambling Act of 1867, which largely criminalized gambling. Post-independence, states did gain the power to regulate betting, leading to a patchwork of laws. The country did take significant leaps which include the Supreme Court’s 1996 ruling that skill-based games are not gambling, and the 2018 Law Commission of India’s recommendation to regulate sports betting. The rise of technology and online platforms has accelerated growth, leading to both opportunities and challenges. The industry is now at a crossroads, with calls for reform and potential legalization amidst concerns over social impact.
Illegal betting in India is deeply embedded in the fabric of popular sports like cricket, football, and horse racing. However, the lack of a legal structure has not its followers; instead, it has fostered a large network of unregulated bookmakers and betting syndicates, sometimes associated with organised crime.
The economic ramifications of this widespread illegal industry are many. Initially, it denotes a significant decline in the capacity to generate tax revenue. The legalisation and regulation of wagering by the government has the capacity to generate billions of dollars, which can then be directed towards public welfare programs and infrastructure development. Furthermore, the existing illegal status necessitates that transactions occur either in cash or through unofficial means, thereby bypassing established financial systems and bolstering the underground economy.
The Indian population exhibits diverse responses to such activities. On one hand, there is societal acceptance and support for gambling as a means of amusement and expertise, especially in the realm of horse racing and rummy, which are officially acknowledged as games requiring ability. On the other hand, there is a significant amount of doubt and concern about the honesty of sports and the possibility of corruption and match-fixing. The public’s concern about the wider consequences of gambling is a result of the tarnishing of its reputation by prominent scandals. It is crucial to keep an equilibrium between these viewpoints in any forthcoming law that seeks to regulate and legalise gambling in India.
Moreover, the legalisation of gambling in India can yield significant economic advantages, specifically in terms of tax income. Legalisation will not only facilitate the establishment of employment possibilities but also enhance the economy by producing income. This would be achieved through job creation in several industries, including IT, customer service, and regulatory organisations.By implementing stringent controls and oversight, a well-regulated market can safeguard customers from addiction and fraud. This encompasses endeavours that seek to promote responsible gaming, equitable competition, and assistance for persons afflicted with gambling dependencies.
The tax money earned by legalised gambling can yield significant societal benefits. This money could be assigned to public welfare initiatives aimed at enhancing infrastructure, healthcare, and education. By distributing these resources to the community, the government may ensure that the benefits of a legalised gambling market are enjoyed by a broad section of society, thus promoting general progress and welfare.
Critics of the legalisation of gambling in India argue that it could worsen gambling addiction, leading to significant negative consequences for individuals and society as a whole. The legalisation of betting has the potential to improve the accessibility and acceptability of this activity, which could lead to an increase in people’s tendency to place wagers. The recent surge in addiction poses a significant risk to families, potentially resulting in adverse consequences such as financial strain, strained relationships, and mental health disorders. An escalation in gambling can lead to a variety of social problems, including poverty and criminal behaviour, which can significantly affect communities.
The discussion is further complicates due to cultural and ethical factors. Many cultural and religious organisations in India strongly oppose gambling on moral grounds, viewing it as a vice that promotes unhealthy lives and destroys social standards. These organisations argue that gambling contradicts traditional values and ethical norms, leading to a clash between modern economic interests and traditional cultural beliefs.
India gains significant insights by analysing global opinions on the legalisation of gambling. Case studies conducted in countries like the United Kingdom and Australia provide valuable information. The Gambling Act of 2005 in the United Kingdom legalised betting and created a thorough regulated system that includes safeguards for consumers, licensing requirements, and severe limitations on advertising. In its approach to responsible gambling, the United Kingdom places a high importance on the implementation of self-exclusion programs and providing support to individuals with gambling problems. Furthermore, this regulatory framework not only ensures a transparent and secure betting environment but also generates significant tax income.
The Australian betting sector is under rigorous regulation and oversight from both federal and state authorities. This serves as an additional notable illustration. Operators must comply with the laws outlined in the Interactive Gambling Act of 2001, which regulates online betting. Australia’s model prioritises the importance of a regulatory approach that consists of both national supervision and state-specific rules in order to effectively handle local requirements and concerns. This approach has effectively balanced economic benefits with social protections.
India could consider implementing a dual-layered system, similar to Australia’s, that combines federal oversight with state-specific rules, or a centralised regulatory framework, like the UK’s Gambling Commission, to encourage wagering within a regulated environment. Both approaches highlight the significance of being adaptable to specific local circumstances and strict limitations. In order to guarantee that only trustworthy organisations are allowed to enter the market, it is crucial to establish a clear and rigorous licensing procedure for betting operators, who are vital elements of this regulatory framework.
Levying high tax rates on betting revenues has the potential to produce significant public monies while also discouraging excessive gaming. It is necessary to enact a wide range of consumer protections, including compulsory self-exclusion programs, limitations on advertising, and assistance services for individuals with gambling addiction. Moreover, it is crucial to guarantee adherence by employing technology to efficiently enforce regulations and monitor betting activity in real time.
Therefore, it is necessary to have a strong dedication to responsible gambling methods, consumer safeguards, and thorough regulation. To build a complete regulatory framework, it is imperative for policymakers and stakeholders to coordinate. Moreover, this involves giving priority to the welfare of individuals, conducting public consultations, and engaging with international experts. By rigorously implementing and formulating these standards, India may build a betting industry that is economically advantageous, transparent, and secure.
- Statista. (n.d.). Online Sports Betting – India | Statista market forecast. https://www.statista.com/outlook/amo/online-gambling/online-sports-betting/india#:~:text=Revenue%20in%20the%20Online%20Sports,US%242.70bn%20by%202029.
- India, G. O. & LAW COMMISSION OF INDIA. (2018). LEGAL FRAMEWORK: GAMBLING AND SPORTS BETTING INCLUDING IN CRICKET IN INDIA. In Report No. 276. https://cdnbbsr.s3waas.gov.in/s3ca0daec69b5adc880fb464895726dbdf/uploads/2022/08/2022081655-1.pdf