India Looks to Online Gambling to Resurrect the Economy

When it came to gambling in India the consensus has always been that the government is opposed to it. This widely held viewpoint is based on the Public Gambling Act of 1867 which makes it illegal to run a public gambling venue.

However, no laws specifically outlawed players placing bets and there was little to no mention of online gambling. Even the Information Technology Act 2000 which is the primary framework for all technology-driven regulations in India does not specifically refer to gambling or betting.

This allowed for a grey market to develop where online casinos would promote to Indian gamblers but faced challenges getting the funds out of the country. It is estimated that gambling in India is worth more than €51 billion, with more than 50% of this considered to be illegal betting and wagering.

 Maharashtra’s Saving Grace

One of the few states in India to have regulation which explicitly bans online gambling is the state of Maharashtra. Under the Bombay Wagering Act, 2010, placing wagers on any online casino games or placing any bets on sports events is considered a serious offence.

However, the recent financial toll of the pandemic has softened their view of online gambling. Recent reports by Times of India places the states debt burden at more than €71 billion, with no silver lining in sight, that is until they began to consider legalising online gambling.

With more than 114 people residing in Maharashtra it has been estimated that they could raise as much as €300 million from legalising online gambling within the first two years. Given the increased investment by offshore operators in local media and advertising plus setting up server hosting and customer support centres, the overall impact on the economy could far outweigh even that estimation.

 First Green Shoots

An NCP cabinet member has gone on record noting that the task force looking into creating a regulation roadmap for Maharashtra is taking its lead from the work done on the topic by the state of Sikkim.

Sikkim’s approach to online gambling is considered groundbreaking in India as they were the first state to introduce a formalised, multi-tiered, onboarding process for online casino operators.

While the review is still in its infancy it is expected to progress rapidly, given the in-depth formula laid out by Sikkim and the dire financial situation Maharashtra finds itself in. Doing so will the state in a small but growing gambling-friendly collective which currently consists of Goa, Daman, and Sikkim.