The Indian government is taking a firm stance against the increasing proliferation of illegal betting and gambling apps within the country's $2.9 billion industry. Despite clear regulations prohibiting such activities under the Public Gambling Act of 1867, there has been a notable surge in the utilization of these illicit betting platforms, particularly during major sporting events and general elections.
The Consumer Affairs Ministry is advocating for action against those who promote these illegal activities, which violate the regulations set by the Central Consumer Protection Authority (CCPA). To combat their spread, the Ministry of Electronics and Information Technology (MeitY) is being urged to identify offenders and pursue legal measures accordingly. Moreover, stakeholder discussions will be held to strengthen regulations and shield consumers from the addictive and financial risks associated with online gaming.
This development follows growing concerns regarding the financial and socio-economic repercussions these platforms may bring about, particularly among vulnerable demographics.
Mounting Pressure
The government has been actively addressing compliance issues and campaigning to protect consumers from potential harm. In addition to advocating for more consumer protection against unlawful platforms, the Consumer Affairs Ministry is also supporting Bengaluru's National Institute of Mental Health and Neurosciences (Nimhans) in conducting research on the disruptive impulse control behavioural patterns associated with online gaming, which may lead to vulnerabilities.
Moreover last year, a set of new rules was introduced to help regulate the online gambling industry. Suggestions were also made for self-regulatory bodies, composed of online gaming companies tasked with establishing rules. Additionally, efforts were directed towards enhancing player safety, addressing addiction, combating financial crimes, and safeguarding children.
However, despite these efforts, the varying regulations from state to state in India have created uncertainty for both operators and users. According to a recent study, a quarter of online gamblers in India have fallen victim to various issues, ranging from identity theft to complications in withdrawing funds.
This underscores the importance for those who enjoy online gambling as a leisure activity to engage through proper channels. In fact, there are specific websites that provide gamblers with lists of vetted, licensed, and regulated operators, and NoDepositTracker is an example of such a site. Whether individuals are interested in casino options or sports betting platforms, they can be certain that any brand they choose from these recommendations is reliable.
Future Growth
Published by Ken Research, the study titled "Consumer Behavior Analysis for the Online Gambling Industry in India" also sheds light on future growth prospects. It revealed that online gambling is especially favoured by individuals aged 36 to 44 in Delhi and Maharashtra, while in Uttar Pradesh, it is most popular among those aged 26 to 35. Additionally, the study noted that a majority of 36- to 44-year-olds in Karnataka are actively engaged in online gambling, spending between 11 and 20 hours per week on the activity.
While undoubtedly, the industry could generate a significant amount of income for India's economy, the risks, including social isolation, cyberbullying, addiction, and bankruptcy, cannot continue to be overlooked. As such, it's more important than ever for the CCPA to crack down on surrogate advertising promoting illegal gambling platforms that violate CCPA regulations.
On-Going Crackdown
India's Ministry of Information and Broadcasting recently issued a warning to all celebrities and influencers who promote offshore online operators on social media in response to a dramatic increase in gambling adverts. The warning states that they could face legal action. Currently, the Indian government can issue notifications to intermediaries such as social media platforms to remove access to posts advertising illegal operators. Additionally, under the 2019 Consumer Protection Act, they could also have their social media accounts disabled, which could severely impact their livelihood.
The CCPA has argued that by promoting gambling, influencers and celebrities are endorsing the activity, despite non-skill based gambling remaining illegal in most parts of India under the Public Gambling Act 1867. As such, they will be viewed as equally responsible for this offense and will be prosecuted accordingly.
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