Gambling, online or otherwise, has been around in the country for decades, if not centuries. Ranging from harmless card games played at family gatherings to large underground organized sports betting industries, India is no stranger to the tussle with the legality of gambling.
Many have raised questions and concerns regarding the existence and continuous growth of the online gambling industry – Is online betting legal in India? Do we need a central law banning all forms of online gambling? Is there a need for regulation in the industry? Will online betting ever become a legalized and regulated sector?
While we have no concrete answers yet, there seems to emerge a pattern of differing opinions and actions followed by the different state governments in India. While some states like Tamil Nadu and Andhra Pradesh have taken steps to block all forms of online gambling, other state governments such as Maharashtra have considered the advantages of legalizing and regulating the industry instead.
There are obvious concerns that have led state governments to take action against online gambling activities – rising debts that players may find themselves in, a threat of related illegal activities such as money laundering and fraud, as well as a concern for the impact of gambling on the moral fabric of the country.
However, as per data shared in a report by The Week, at least 40% of people in India are engaged in online gambling every year. And this is when the online gambling industry exists in a state of legal ambiguity. As per this report, India might soon take over the United Kingdom, a country where gambling is a legal activity, in terms of gamblers per capita.
These numbers clearly suggest that despite the actions being taken against online gambling, the industry seems to be growing at a steady pace. And this is where another argument – the one supporting the legalization and regulation of the industry – finds its place.
There exist many expected benefits that the legalization of betting sites in India might bring about. The first and foremost has to be the profits that the state governments in India will stand to make. Since the online gambling industry is unregulated so far, there is no state tax or GST being charged.
This means that state governments lose out on an estimated 10.2 billion rupees in tax revenue every year! And this figure is estimated to grow bigger with time.
Another added benefit of the regulation of the online betting industry would be in the interest of the users. In an unregulated industry, there exists no legal framework or legislation that protects the rights of the user. However, in countries such as the UK, there exists a regulatory body that monitors the licensed gambling websites to ensure that the users are protected from any and all fraudulent activities.
Then, there are a few ancillary benefits such as the opportunity for new start-ups and businesses in the online gambling sector, growth in related industries such as digital payments, as well as any new employment opportunities that crop up thanks to the two.
However, the question of whether or not online gambling should be made legal is not one that can be so easily answered. While there is merit in perhaps legalizing and regulating the market, the same could be said for an outright ban on gambling activities of any kind.
So far, there seems to emerge no clear answer to the question. However, since gambling remains a matter of the state governments, there is bound to be a different approach taken by every state that seeks to deal with the issue.
