India is considering introducing a new federal law to regulate online gambling, aiming to bring more oversight to the rapidly growing sector.
According to reports by Next.io, the Ministry of Home Affairs (MHA) has initiated discussions on the necessity of a dedicated online gaming law. A recent meeting at the Home Ministry, attended by top officials from various agencies, including India’s internal security and intelligence bodies, focused on the regulatory gaps in the current framework.
This development follows the Ministry of Electronics and Information Technology’s (MeitY) introduction of a self-regulatory mechanism for the skill-based gaming industry in 2023. Under this system, "non-governmental bodies" oversee regulation. However, critics argue that this approach leaves significant gaps, particularly in addressing concerns related to illegal betting, offshore platforms, and consumer protection.
A government official, speaking to News18, confirmed that the Indian Cyber Crime Coordination Centre (I4C) under the MHA has been tasked with preparing a report on the need for a new law. "Since these activities are expanding rapidly, a decision will be made once the report is submitted," the official stated.
Operators and Celebrities Under Scrutiny
The limitations of the current regulatory framework have led to multiple central agency investigations into several major businesses suspected of defrauding Indian players. Reports suggest that offshore gambling platforms have been manipulating game outcomes and denying players their winnings.
Additionally, authorities are scrutinizing celebrities who endorse gambling platforms that operate outside India’s legal framework. The country's gambling laws are largely based on the Public Gaming Act of 1867, which bans games of pure chance. However, definitions have evolved over time, with many states differentiating skill-based games such as Poker, Rummy, Teen Patti, and Chess from gambling.
Potential Market Growth and Challenges
If the government decides to regulate sports betting and iGaming, India could appear as one of the largest regulated markets globally. Cricket betting, in particular, is seen as a high-growth segment, given the sport's immense popularity in the country.
Despite the sector’s potential, India's online gaming industry has faced hurdles, including a 28% Goods and Services Tax (GST) imposed on online gaming revenue. While the industry has grown significantly, this taxation policy has posed challenges for further expansion.
In April last year, Prime Minister Narendra Modi met with India’s top gaming and content creators. During the discussion, he emphasized the importance of distinguishing between gaming and online betting while advocating for "balanced regulations" to avoid excessive restrictions on the industry.
As India moves closer to potentially reshaping its online gaming laws, the impact on operators, players, and the broader market remains to be seen. Stay updated with Gaming Amigos for further developments on this evolving regulatory landscape.
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