The Future of Online Casinos in India – What to Expect?
With the ever-growing interest of Indian players in online gambling, many country states began amending their existing gambling laws and approving new ones. Some states, such as Telangana and Assam, have already banned multiple instances of online gaming, which has resulted in serious public discontent. As the situation has rapidly escalated in the last few years, the future of online casinos in India remains unclear. Stick with us to learn more!
This article will discuss the latest legal and domestic developments regarding the future of online casinos in India. We will briefly look into how the situation escalated to its current state. Then, we will do our best to present you with both factions, those who are for and against legal gambling. There is plenty to talk about, so let us get right into it!
Growing Popularity of Online Casinos in India
Compared to the previous year, 2021 was marked by a gradual economic recovery in both India and the world. Many sectors managed to limp back to their previous efficiency and production, especially towards the latter half of the year. Nevertheless, while some industries in India were struggling with the epidemic crisis, one was booming.
During the last few years, the consumer interest in online casino sites in India rose to unseen and unexpected levels. The rapid increase in demand for e-gaming services impacted Indian society directly. Moreover, the growth of online casinos in the Indian sector positively contributed to the country’s economy and found employment for millions of citizens.
Going into further details, the entrance of a new Indian online casino to the scene, combined with the rise in popularity, resulted in a massive financial boom. Looking at a recent KPMG report, the online gaming industry was worth Rs 13,600 crores as of the financial year 2020-21, with an expectancy to increase more than double within the next four years. Financial forecasts anticipate the development to reach a total market size of Rs 29,000 crores by FY 2025 with a compounded annual growth rate of around 21%.
The Usage of Indian Online Casinos Borders Addiction
According to recent research led by the Government of India, it is estimated that the total number of users of online casinos in India and other gambling websites is around 43.3%. Essentially, this percentage states that nearly half of the population of India between 15-64 years of age actively participate in online gambling.
Furthermore, the report says that 50% of the Indian gaming industry’s revenue is generated from real money cards or Fantasy games. In fact, the Fantasy Sports market in India is booming and is definitely one of the favourite gambling options for native players. Right after those game types come the standard Indian online casinos and sports betting sites. Anyhow, let us carry on by discussing the Indian government’s response to the recent development of the gambling industry.
Online Casino Sites IN – Embroiled in Culture
So far, we have found out that the online gambling community in India is one of the largest and most active in the entire world. In fact, the relationship between Indian players and gaming is not a recent occurrence and can be traced back over the decades. Spikes of gambling activity in the past have been recorded multiple times on the Indian subcontinent.
Gambling is embroiled in Indian culture. ?Vraj Shah/Pexels
Anyhow, because sports betting and online casino sites IN have been deeply embedded into the identity and culture of the people, we cannot help but wonder if online gambling in India is legal or not?
The Legality of Online Betting and Online Casino Sites IN
According to the Public Gaming Act of 1867, all forms of gambling are illegal in India. That includes brick-and-mortar casinos, online gambling, sports betting, and any other variation of betting or wagering. The only exception to the gambling prohibition is placing bets on horse races, which is considered legal. Nevertheless, additional provisions within the law divide games of skill and games of chance.
Essentially, punters are allowed to place bets on games of skill. As you can see for yourself, the Public Gaming Act of 1867 has a lot of ambiguity surrounding the difference between games of skill and games of chance. This massive legal unclarity of the Public Gaming Act allows for many online casinos in India to circumvent the grey area and operate virtually without any supervision. Without a doubt, the law’s vagueness is one of the main reasons for the rampant state of the betting culture.
Legal Changes Concerning the Online Casinos in India
It is important to note that India is administratively divided up into various independent states that are mandated to impose and implement their laws and regulations. For example, the state of Sikkim is known to offer a more liberal stance towards online betting. The state has its official casino and a few lottery services.
Another progressive example is the fact that India court welcomed online gambling legislation. While standing by its decisions to prohibit all gambling games of luck, during the summer of 2021, the High Court of India struck down amendments introduced by local politicians as unconstitutional. The ruling concluded that restrictions placed on gambling games of skill are unreasonable and arbitrary; thus, falling short of the constitutional framework of Indian lawmaking.
High Court may change Gambling Laws. ?Sora Shimazaki/Pexels
Even so, most states on the Indian subcontinent are starkly against online casino sites IN and gambling in general. In 2021 the Karnataka state’s Legislative Assembly passed the Karnataka Police Amendments Bill that banned online gambling and betting involving all forms of wagering. That includes all kinds of gambling using electronic means, virtual currency, or electronic transfer of funds.
Furthermore, the state’s Legislative Assembly seeks to amend the Karnataka Police Act, 1963, in order to make online gambling punishable with imprisonment of up to three years and a considerable monetary penalty. Once again, there are certain grey areas; for example, according to the law of Karnataka state, “gaming” does not include lottery, but all forms of wagering or betting in connection with any game of chance. The only exception is the wagering and betting on horse races.
The Future of Online Casinos in India – Conclusion
While much is uncertain and unclear about the future of online casinos in India, it still remains to be seen as to whether the Indian government will look to respond to these calls for more modern laws. Of course, since each administrative state in the country acts independently, the issue with online casinos in India will be challenging to tackle and only time will tell if the government structures have taken the right approach.
Frequently Asked Questions
Unfortunately, we reached the end of our article on the future of online casinos in India. We hope that we have provided you with a well-constructed and helpful piece of information. However, in case you have some queries, you will be pleased to hear that most frequently asked questions and answered them for you.
