India is amongst the top five countries in the world when it comes to online gambling. This is despite the fact that there is no regulated online gambling industry in the country right now. Instead, players visit offshore online casinos where they play games such as poker or bet on sports.
Millions of people in India gamble online every day, and a recent study made by thenewsminute.com revealed that Maharashtra has the highest percentage of casino players in India with 19.36%, followed by Karnataka at 12.45% and Telangana at 10.31%.
This growth in online casino play is expected to continue to increase by around 22% annually in India and is higher than the average global figure of 16%.
Given the obvious potential of online casinos and sportsbooks in the country, will it follow the lead of US states and regulate online gambling? To answer this question, it’s vital to first understand the current situation regarding gambling online in India.
The current legal situation in India
The Indian online gambling landscape is a gray area right now, in most states. The only exceptions are Telangana and Andhra Pradesh where online gambling is prohibited, and Sikkim, Goa, Daman, and Nagaland where it’s legally permitted.
In other Indian states the laws do not specifically address the issue of online sports betting or casinos. Further confusion arose in August 2021 when a Madras High Court ruled against a Tamil Nadu law that outlawed gaming online.
This indecisiveness has left the door open for companies to take advantage of the situation and provide services for casino players and sports betting enthusiasts alike.
Will India Follow in the Footsteps of US States?
Although the current position regarding online sportsbooks and casinos in India may be advantageous for casino game fans and sports enthusiasts who want to place a bet on their favourite team, it’s not ideal in terms of creating much needed revenue for state and national governments.
This is especially the case in states such as Maharashtra, Karnataka, Telangana, Delhi, Tamil Nadu, Uttar Pradesh, and Gujarat where online gambling is particularly prevalent.
In the sporting world, influential individuals such as the Chief Executive Officer for the International Cricket Council (ICC) have reportedly spoken in favour of the regulation of sports betting. They believe that legally allowing betting on sports like the leading national sport of cricket could raise revenue at the state and federal level and take betting out of the hands of underground masterminds.
This path to regulation would be similar to that taken in the US where the majority of states have legalized gambling in some form and where states like New Jersey have generated significant revenue from online gambling activities. In 2021, this revenue amounted to $1.4bn gross.
Indian authorities have to be looking at these figures with interest. However, this does not mean they will reach a hard and fast decision any time soon. There seems to be an issue of lethargy and indecisiveness when it comes to deciding on the regulation of online gambling in India.
This lack of action will not prevent the industry from continuing to grow as the passion of casino players and sports betting enthusiasts is set to continue. This being the case, there may come a time that the Indian federal and state governments follow the example of the US and introduce regulation. It will be interesting to watch the situation evolve.
