India is the biggest democracy in the world and one of only two countries with a population of over a billion people. As such, its market is massive, and there is certainly room for more online casino operators, but does the cultural and political environment welcome this possibility?
The Current Legal Picture
On the federal level, the law is very much in a state of change as the ever-so-slightly out-of-date Public Gambling Act of 1867 is set to be replaced in the relatively near future (explored below). However, most current legislation regarding the legality, or lack of the iGaming, both in reality and online, has been made at the state level.
Some states have outright banned online casinos and other forms of iGaming. Play slots or table games at an online casino in the large states of Telangana or Andhra Pradesh, and you might end up winning a year-long stay in India’s prison cell. By contrast, the smaller states of Sikkim and Goa are among the few that have explicitly endorsed iGaming (an approach that mirrors their attitude towards casinos in the real world).
Prospects for Future Legislation
The mid-19th century was not known for its excellent internet regulation, so it has been a long time since the replaced Public Gambling Act of 1867. The Lok Sabha saw the appearance of the Online Gaming (Regulation) Bill 2022 in a bid to update India’s law in this area, although the new bill is not without critics. One of the biggest criticisms is that (in a move far from unique to politicians in India) those who have drafted should identically regulate the bill to consider that online casino gaming and other online games have some monetary elements (such as video games with DLC and microtransactions).
While not the first time such technological ignorance has been seen by politicians, it remains somewhat alarming that these drastically different online entertainment options are being treated as interchangeable. It also means the bill will be subject to prolonged revision to make it fit for purpose. Otherwise, online casinos or video games will end up being governed by entirely unsuitable laws. It also remains to be seen how will handle promotions and whether online advertising campaigns for casinos may be in the future.
One key aspect of the bill is also bad news for online casino fans: criminalization. The presumption is that platforms must be licensed to be used, and without said licensing, a player may be considered engaged in a criminal act (punishing players rather than operators). There is also a need for more data protection provisions within the Online Gaming (Regulation) Bill 2022, as introduced, and a conflict resolution pathway for when casino customers have complaints needs to be included. In short, there are some good parts, but greater clarity is required in several areas.
India is undoubtedly late to this party, and its current legislation needs to improve. But being late also means they can browse other nations’ laws and find an approach (whether liberal or restrictive) that has been shown to work well.
iGaming Beyond the Law
The size of India and its immense population means a lot of iGaming occurs, and around half of the $60bn market is believed to be of the illegal variety. It means that approximately $30bn of illegal wagering could represent a significant cash infusion for the government if the forthcoming new legislation at the federal level opens up new online iGaming establishments(both sports and casino games).
At the moment, offshore casinos designed specifically for India’s players are legal and accessible online, which is slightly strange given that casinos in India are not permitted to have online versions. This is a legal way (provided you are not in one of the states that expressly forbid online iGaming) to play online at casinos today. Still, the revenue stream inevitably leaves the country and flows into the treasuries of other nations. There is a financial incentive for the Government of India to make online casinos in India legal and accessible. However, a fierce debate about the pros and cons of adopting this approach.
Despite a lukewarm attitude to online casinos (and some states outright banning them), India’s market is massive and continues to grow. The legislation needs to be written to take into account this. And to provide clarity in law and protection for India’s players who want to enjoy themselves at online casinos or wagering on both traditional sports and esports.
In summary, India is a growth market for online casino operators and is likely to remain so. However, getting the law right matters to provide clarity for players and online casinos alike.
Also read: The Advantages of Online Casinos: Why They Are Dominating The Market
