Why Online Betting Id Ban In India - India's online gambling industry continues to grow and local governments are beginning to see what they should do about it. Here we take a look at why gaming bans in India can do more harm than good.
India's online gambling industry continues to grow and local governments are beginning to see what they should do about it. Most of the states in the country have not taken any significant step in this matter but many states have already banned some online games.
Generally, online gambling in India is still in a gray area. The laws applicable to regulate gambling activities in the country do not mention anything on online betting or online casinos. The central law governing gambling in India is the Public Gaming Act and was passed in 1867. It has nothing to do with online gambling.
Even modern laws relating to online activities in the country do not mention online betting and gambling in any form. This is the reason why Indians can still access online gambling sites without any problem. What is certain, however, is that unless permitted by the state, local online gambling operations are not permitted in the country.
To date, states such as Telangana and Andhra Pradesh have banned any form of online gambling. Nevertheless, Telangana has the largest number of online bookmakers who visit the best betting sites in India. The state accounts for over 18 percent of the online betting market in the country.
Meanwhile, the states of Tamil Nadu and Karnataka are also moving in the same direction. However, Tamil Nadu seems to be going back and forth with its online gaming rules. Earlier this year, the state banned online gaming with its Gaming and Police Act amendments, but the state has reportedly allowed Dream11 to operate without interruption.
This happened after the High Court struck down a law passed earlier. It is not clear at the moment whether Tamil Nadu will do anything about it. The state's High Court reaffirmed that the local government could enact another law to ban particular forms of gaming.
Karnataka's stand on online gaming may also change soon. The local government has proposed a ban on online gambling in the state and the reason behind this is to protect citizens from the risk of losing large amounts of money online.
The proposed amendments to the Karnataka Police Act of 1963 include prohibiting online gambling activities that involve any exchange of money whether in digital or any other electronic form. However, lottery and horse racing are exempted from this. Although the ban is not yet official, many are already questioning the continuity of the proposed bill as it is inconsistent with the distinction of games of skill and chance. This is the reason why some groups are calling the Karnataka government and requesting them to withdraw the ban.
The Internet and Mobile Association of India (IAMAI) has issued a statement in this regard. The group said that the bill appears to have been prepared without considering various legal and constitutional positions as it contains a broader definition of gaming. According to him, the proposed bill would negatively impact Indian companies and offshore gambling operators would still be available to local people.
Confederation of All India general secretary Praveen Khandelwal also wrote a letter to the Karnataka CM regarding this. Khandelwal said, “Game of chance is pure gambling which is addictive and must be dealt with by adequate legal procedures. Games of skill, on the other hand, enable players to monetize their gaming talent and finesse. If the bill bans online skill games, law-abiding Indian companies will be kicked out of the market and users will turn to offshore betting apps which can be harmful and dangerous.” The IAMA said the bill that Karnataka wants to pass could damage the state's status as a startup hub of the country. This can result in loss of jobs and revenue.
Need For Progressive Regulations
Banning gambling activities is not at all progressive in terms of what it can do for India's economy. The size of the online gaming market in the country is estimated to be around Rs 13,600 crore this year and it is reported that the country now has over 433 million gamers.
Meanwhile, when it comes to sports betting, MyBetting reported in October that there are over 370 million people in the country who bet on major sporting events like the IPL. Of these, about 14 crore people regularly bet on sports.
The same report also revealed that most of the bets placed in the country are from Telangana and Karnataka. This means that even if sanctions are in place, people are still placing their bets offshore. With this, India is losing revenue from offshore gambling companies and the underground market. It is also failing to protect its citizens from the risks that come with gambling underground.
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