India’s Supreme Court has agreed to look into a petition filed by a social activist calling for increased regulation around online gambling in the country.
The petition calls for strict regulations on online casinos and fantasy sports, which are widespread in India despite a lack of clear regulations. It was filed by a campsigner who declares himself “a prominent social activist, humanitarian, and President of Global Peace Initiative, which is dedicated to promoting peace and justice globally”.
The Public Interest Litigation (PIL) was filed “in the interest of millions of people and to protect the sanity and democracy in India by banning “illegal” betting apps.”
India’s gambling laws
The Public Gaming Act of 1867 prohibits gambling houses from operation, but, of course, makes no reference to online gambling. As it is not explicitly prohibited, many operators offer gaming in a legal gray area, unless states regulate it.
States have been moving to regulate, with Haryana and Karnataka both drafting new legislation this year. Sikkim began offering licensed sports betting in the state.
In some states, games such as slots, roulette or other games of chance have been prohibited, but games of skill and fantasy sports are legal. The petition argues that operators are exploiting the “games of skill” loophole to encourage more gambling.
The PIL believes it is in “the larger public interest to safeguard the youth of India from the unregulated, exploitative, and dangerous online betting industry operating under the garb of fantasy sports and skill-based gaming”.
Unregulated gambling a big market
It is estimated that 50 million Inidans are engaged in online betting activities. The online gaming industry in the country was valued at $3.7 billion last year, and is projected to grow to $9.1 billion by 2029.
Due to the lack of clear regulations at the federal level, offshore casinos are exploiting legal loopholes. A report by the Digital India Foundation highlighted that four major offshore brands received 1.6 billion visits from Indian users over a three-month period.
Indian users made an estimated $12 billion in deposits at unregulated operators last year, meaning the country potentially loses around $2.5 billion annually in Goods and Services Tax (GST) revenues. If regulated, gambling is taxed at 28%.
Indian influencers promoting betting apps
The petition also mentions a recent case where 25 celebrities and social media influencers were investigated by Telangana Police in March this year. A complaint alleges that several actors, TV personalities, and influencers promoted mobile betting apps through social media.
Some celebrities have responded to the allegations, stating that their endorsements were limited to skill-based games legally permitted in certain regions.
The petition calls on the government to give clear definitions and enforce stricter regulations around what constitutes a skill game, as well as clamping down on unregulated operators.
The Supreme Court issued a notice to the central government, seeking its response on the matter.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
