Online betting is at a crossroads in India: while this activity has been officially prohibited since 1867, the rise of the digital sector affects its further evolution. Currently, over 130 million residents reportedly engage in this form of entertainment, and the need for regulations has never been higher than it is now. With the lack of a unified industry framework, some states have already legalized some types of gambling, while others completely ban them. There are no signs that the Indian government is planning to legalize the sector across the country, but let’s explore how it could follow other jurisdictions’ examples.
Clear Licensing and Regulations
Many countries across the globe have already integrated industry regulations to control the sector and impose limitations on vulnerable populations. This system is efficient, as betting-related activities form a significant part of the budget income through taxation. Moreover, it helps governments to supervise the gambling sector. For instance, the UK legalized betting and casino gaming and, at the same time, established the UKGC, the main licensing authority.
Each operator providing services in the region must obtain this certification and comply with local requirements. While this framework allows all types of iGaming, players face multiple limitations, including bet size amounts, bonuses, and so on. If India adopts such an approach, it will get the chance to popularize safe IPL betting sites and generate additional profits by implementing taxation conditions. A nationwide licensing regime will help the state to establish clear eligibility, operator responsibilities, consumer protection, and enforcement mechanisms.
Implementing Licensing Conditions and Authorities
Currently, India lacks the supervisory body that could control the sector and issue requirements for in-country operators. Establishing an authority that will cover all aspects of the industry will provide local companies with clear frameworks. This will help India to shift users’ attention from offshore to domestic service providers, which will eventually affect its socioeconomic climate. When implementing new requirements, it can consider the UK’s or Australia’s example, where all industry aspects are clearly outlined.
Harm Minimization and Enhanced Consumer Protection
Regulations aren’t only concentrated on the legality of online bookmakers. Besides, the framework should ensure that vulnerable populations don’t suffer from the negative consequences of uncontrolled betting. Countries with developed iGaming laws initiate financial checks, identity verification, and bans on illegal service providers to ensure transparency for all parties. India can consider this example and focus on the following aspects:
- Detailed KYC policies to verify each player and prevent fraud
- Age verifications to prevent underage individuals from engaging
- Spending limits for users to avoid overspending
- Marketing restrictions, limiting the harmful impact of betting ads
- Financial monitoring to help users bet wisely
- Controlling mechanisms to prevent money laundering through online bookmakers
Statistically, youngsters are more prone to gambling addiction development, as they are more likely to take risks, but have less stable financial conditions. Hence, India should explicitly focus on protecting these vulnerable populations. As the country’s demographics are predominantly young and tech-savvy, regulating digital betting and implementing specific laws is the best approach.
Increasing Public Awareness of Betting-Related Risks
Besides limiting betting operators and providing guidance on consumer protection. Governments increasingly invest in user awareness about potential compulsive problems. Such campaigns can be found across the globe, being especially popular in the UK, the US, Australia, and Canada. European states are not far behind, and India can consider this ready-made example to promote safer gaming habits on its territory. Users should stay informed about the risks associated with joining real-money betting websites and learn how to manage their budgets effectively to avoid overspending. Excessive deposits are often the main cause of gambling problems, which is why this aspect should be the priority for Indian authorities.
Games of Chance vs Games of Skill
In India, the basis of industry regulations lies in clearly distinguishing games of chance and games of skill. Luck-based entertainment is strongly prohibited, but this fact doesn’t prevent locals from engaging with overseas online sportsbooks. The government should address this point and consider frameworks of other jurisdictions. Many states differentiate activities according to the level of risk that they offer. Here, India can consider following the UK’s example again. All gambling activities are legal for British residents aged 18 and over, but licensing, safety, and transparency are the mandatory requirements for service providers.
Adaptability of Future Regulations
The digital sector continues to evolve quickly, and this trend will definitely not stop in the upcoming years. The Indian government should get rid of the outdated legal framework and adapt to the developing market. The regulator controlling the sector should get the right to enforce changes without delay after evaluating the industry background to eliminate gaps and loopholes. Although this system will be hard to implement in the state that now lacks a supervising body, such changes may positively affect all stakeholders in the region. Currently, the country can explore examples of other jurisdictions and search for a model that best fits the existing landscape.