The archaic laws around gambling in India have been called into question following the arrest of a significant political figure for illegal gambling.
A Bharatiya Janata Party leader was taken in by police – alongside several prominent business people and a doctor – at an apartment in the Sri Nagar Colony, a province of Hyderabad. A total of ₹17.5 lakh was seized in cash, and a gaming act case was registered, taking up more authorities’ resources.
It’s yet more evidence of the antiquated and bizarre state of play for the Indian gambling landscape. Observers are beginning to question how the very individuals responsible for setting the backward laws can so flagrantly disobey them.
How Prominent is Betting in India?
The scale of betting in India continues to grow at an astonishing rate. According to a recent study by industry thought leaders ENV Media, the numbers stretch into the hundreds of millions.
The paper, titled Sports Betting: India’s Favourite Invisible Giant, writes:
“The desi passion for real-money gaming also translates into an estimated 370 million betters during major sporting events, while around 140 million are said to bet regularly.”
Naturally, such large numbers of those that bet online translate into an even bigger picture of the economic numbers.
“When India’s national cricket team plays a One-Day International match (ODI), illegal betting amounts to around USD 200 million per game. The combined amount over the year, including the League season and any international competitions, reaches USD 150 billion.”
What are the Benefits of Legalisation?
Putting aside the faintly ludicrous situation whereby the rule-makers are breaking their own over-zealous rules, it’s easy to see why there is a national interest in regulating online gambling.
A list of benefits includes:
Enhanced Safety: Hundreds of thousands of vulnerable bettors are engaging with illicit, dark money betting sites that endanger the security of a player. Regulation will simultaneously wipe out the illegal underground betting scene while providing transparency in play for both the individual player and the authorities.
Increased Taxation Benefits: Another ENV Media paper, Off-Shore Gambling Licenses and Regulated Markets, estimates the illegal gambling sector is worth well over $100billion annually. It doesn’t take a genius to see how valuable taxation could be to the national government.
Job Creation: In 2019, a Statista report approximated the total number of employees in the UK betting industry to be 46,000. When one considers the relative size of the UK in comparison to India, one can see the massive employment opportunities it raises for vast swathes of the population.
Is There a Future for Gambling Regulation in India?
There does appear to be a change in the tide from a sociopolitical standpoint. Recent high court rulings have struck down state-wide bans on online gambling in several states, while Meghalaya is one of the first Indian regions to legalise online betting – albeit for tourists.
However, there is still a long way to go before establishing a uniform nationwide policy that would make the enforcement of safe betting standards, and massive taxation benefits a guarantee.
ENV Media believes both sides of the argument must show a willingness to find a working resolution to the current regulatory impasses gripping India.
“With technological evolution in mind, gambling standards need to allow for a certain flexibility and regulatory upgrades. However, initiating reform to adopt a Central policy will allow for timely capacity-building in national and state authorities in terms of knowledge, assets, technology, trans-border, and inter-industry cooperation.”
“The goal of growing yet unregulated markets should be to achieve high consumer and public interest protection levels through modern legislation. Local jurisdiction licensing and legal channelling has proven as the most efficient means of achieving such ambitious long-term benefits.”
