India's online gambling industry is witnessing unprecedented growth, driven by the convenience and accessibility of betting platforms and sports apps. With features like live dealer games, loyalty programs, and enticing bonus rounds, online betting platforms have captivated millions of users. However, the industry operates in a complex legal framework, with laws varying across states and central legislation lacking clarity. While states like Goa and Sikkim embrace casinos, others enforce stringent anti-gambling measures. This article examines the sector’s growth, challenges, and the pressing need for a robust regulatory framework to balance innovation, player safety, and revenue generation.

Growth of Online Betting Platforms in India

Popularity of Online Gambling: Online gambling platforms offer a wide variety of games, ranging from traditional card games to casino and sports betting options. Key attractions include convenience, anonymity, and the freedom to choose from diverse game types.

Role of Gamification: Gamification has revolutionized online gambling by incorporating game design elements like leaderboards, rewards, and achievements. These features make platforms more engaging and addictive, driving player participation and profitability for operators.

Loyalty Programs and Bonus Features: Many platforms provide loyalty rewards, daily challenges, and bonus rounds to keep players engaged. Features like free spins in slot games and mission-based rewards have become a hallmark of popular platforms such as Parimatch, Dafabet and Megapari.

The Legal Landscape: A Complex Framework

Central Legislation: The Public Gambling Act of 1867 prohibits operating or visiting “common gaming houses” but excludes “games of skill” like rummy. However, it does not explicitly address online gambling, leaving digital platforms in a legal gray area.

State-Specific Laws: Indian states have divergent approaches to gambling:

Pro-Gambling States: Goa and Sikkim permit casinos, with Sikkim also licensing online betting.
Restrictive States: Andhra Pradesh and Tamil Nadu banned online gaming and betting in 2020.

Impact of Illegal Gambling: Despite prohibitions, illegal gambling thrives, estimated at a $65 billion market. India’s online gambling market already boasts 14 million users, with an 8.7% annual growth rate expected until 2028.

Information Technology Act: The IT Act prohibits sharing information that promotes online gambling, further complicating the legal environment for operators.

Challenges and the Need for Regulation

High GST Impact: The Indian government has announced a high Goods and Services Tax (GST) rate on online gambling platforms. While taxation has started, comprehensive regulation is still lacking.

Growing Need for a Legal Framework: Experts emphasize the importance of a regulatory framework to address licensing, taxation, player protection, and responsible gambling. Such regulation would reduce illegal activities while providing clarity to legitimate operators.

Lessons from Global Markets: Countries that regulate online gambling have demonstrated how legal platforms can generate revenue and ensure player safety. A balanced approach could enable India to harness the sector's potential while safeguarding public interests.

The Road Ahead: Balancing Growth and Responsibility

Comprehensive Regulation: Establishing a unified legal framework could enable India to strike a balance between promoting innovation and protecting its citizens from gambling-related risks.

Revenue Potential: Legalizing and regulating online gambling could unlock significant revenue streams for the government while minimizing illegal market activities.

Responsible Gambling Practices: Encouraging player protection mechanisms, age verification, and addiction prevention measures will be key to fostering a sustainable gambling ecosystem.