Online Gambling in India Faces Federal Resistance

With a population of more than 1.4 billion, a growing technology infrastructure, deepening internet penetration, and a confirmed member of BRICS, India is poised to become one of the hottest gambling markets on the planet. Conservative estimates place the value of online gambling in the country at more than $100 billion annually.

While nationwide regulation of games of chance would be a dream come true for industry evangelists, it is facing resistance from the Ministry of Information and Broadcasting.

 The IAB Ministry Push Back

India's gambling and technology laws allow individual states to determine whether or not to regulate real money wagering within their borders. Despite this, local laws often bump heads with federal law, as is the case with a demand by the Ministry of Information and Broadcasting (IAB) that broadcasters cease all casino and betting advertising.

Ministry Deputy Director of Digital Media, Kshitij Aggarwal, said:

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“The above-mentioned Advisories clearly mention that betting and gambling are illegal activities, and hence advertisements/promotion of such activities directly or indirectly on any of the media platforms fall foul of various statutes, including under the Consumer Protection Act, 2019, the Press Council Act 1978, and more."

While several states have regulated online and land-based gambling, others, like Maharashtra, have repealed the Casinos Control Act (1976), effectively destroying any chances of legal casino gaming in India's largest state.

While states can vote to allow instant slots and other games of chance within their jurisdictions, the IAB is looking to control nationwide advertising of promotional offers, which it deems illegal outside regulated markets.

 Convoluted Laws Don’t Help

One significant contributing factor to the recent upheaval in India's gambling sector is the layers of confusing, state-driven regulations.

India has three very different regulations in play moderating a single industry:

1. Public Gambling Act (1867): This regulation makes it illegal for land-based gambling venues to operate in the country. However, it includes a caveat that says there are no penalties for "any game of mere skill".
2. Prize Competition Act (1955): This law does not allow items valued at more than 1000 INR to be offered as prizes for competitions.
3. Information Technology Act (2000): This law regulates virtual businesses and industries by allowing various self-regulation through oversight bodies.

It is the last of these three regulations that have allowed for online gambling to gain traction in Goa, Daman, and Sikkim, as they have exercised their right to allow real money instant games. Meghalaya and Nagaland have also drafted laws to regulate skill gaming in public spaces.