Telegram has suffered several blows in the past week. CEO Pavel Durov was arrested in Paris, and India is reviewing whether the messaging app has contravened its Gambling Act and data mediation laws.
Telegram is revered as one of the leading peer-to-peer messaging apps. However, its adherence to free speech and privacy protection could also be the root of its downfall, as company CEO Pavel Durov was arrested in Paris and could face changes related to the platform's lack of content moderation.
To add to Telegram's woes, it has come under fire in India for similar reasons, in addition to being a platform for illegal gambling. If India decides the company has intentionally ignored local legislation, it could mean the loss of millions of users.
Tumultuous Relationship with Gambling
India has always had a stormy relationship with games of chance. While it is a popular pastime among all socio-economic groups, the federal government has always taken an anti-gambling stance in lawmaking and law enforcement.
However, India’s state-based regulatory system has allowed some regions to allow legal gambling within their borders. Only three states, Goa, Daman, and Sikkim, take full advantage of their autonomy by allowing land-based gambling and online casinos.
Several caveats to the current legislation could also see more states legalise gambling. Firstly, the Information Technology Act 2000, which controls online activities in India, does not mention gambling.
There are no federal laws in India that specifically make mention of online betting, be it on sporting events, politics, or esports. Instead, several states have added betting restrictions to their local regulations, leaving betting open to the rest of the country.
Telegram Faces Expulsion from India
One of the increasingly popular gambling technology platforms worldwide is Telegram. With its security and Web3 capabilities, Telegram has seen an explosion in crypto and fiat casino gaming.
Telegram has also become one of India's most widely used messaging apps, accumulating over five million users since its launch in the country. However, the prevalence of unlicensed gambling content and lax data integrity regimes has caught the eye of the Federal government. A task force is currently investigating whether Telegram should be held accountable for transgressing the Indian Gambling Act and for other data leaks, such as the sale of a medical entrance exam which used Telegram as its platform.
A government official told local media outlet MoneyControl that while they could not do much against Telegram as the tech company has no local presence, there is a very real chance that the app could be permanently banned from the country.
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