Betting in India has evolved rapidly in recent years, driven by easy access to smartphones and digital payment methods. According to industry estimates, the Indian betting market is worth over $60 billion annually, with a significant portion operating underground or through offshore platforms.
Reports suggest that over 140 million Indians engage in some form of betting regularly, and this number continues to rise. The rise in online platforms has made betting more accessible, reducing dependency on physical bookmakers. Despite government restrictions, Indians have found ways to participate, often using international platforms that operate beyond domestic jurisdiction.
With digital infrastructure improving and smartphone penetration increasing, the betting industry is expected to grow even further. Additionally, with the increasing number of sportsbooks and expanding market coverage, competition to attract users is intensifying.
Many platforms launch promotions like Stake promo code, further driving market expansion. However, the lack of clear regulations at the national level has led to legal ambiguities and enforcement challenges, preventing the government from harnessing its economic potential.
The Weakness of Existing Laws
India’s legal framework for betting remains rooted in the Public Gambling Act of 1867, a colonial-era law that does not account for the digital betting landscape. Some states have gambling laws, but inconsistencies confuse authorities and consumers. Without national regulation, offshore platforms thrive, costing the government valuable tax revenue.
In contrast, countries like the United Kingdom, Australia, and Sweden have implemented comprehensive laws regulating online and offline betting. The UK, for example, has a licensing and taxation framework that ensures consumer protection while generating billions in annual tax revenue.
Operators must adhere to strict guidelines, including measures to prevent underage gambling and financial fraud. Australia's similarly structured approach requires all betting platforms to register and follow responsible gambling norms.
The lack of a transparent system in India has led to several issues, including fraudulent betting schemes, lack of consumer protection, and money laundering risks. In jurisdictions with clear regulations, authorities can monitor transactions and ensure fair play. Without comparable oversight, Indian consumers remain vulnerable to exploitative practices by unregulated operators, who face no accountability under current laws.
International laws also focus heavily on preventing gambling addiction through intervention programs and awareness campaigns. India, lacking a national regulatory body, has no mechanisms to address these concerns systematically. The absence of proper frameworks further amplifies the risk of addiction, fraud, and economic losses for individuals.
The Economic Argument for Regulation
Betting is already a multi-billion-dollar industry in India, but the government loses potential tax revenue annually due to its unregulated nature. Instead of benefiting from an industry that is growing regardless of restrictions, the government faces challenges in controlling illegal markets and offshore operations. Regulating betting in a structured manner could bring substantial economic benefits, including employment opportunities and increased public revenue.
Legalized betting markets in other countries have proven to be highly profitable. The UK Gambling Commission oversees a market worth over £14 billion annually, with tax contributions supporting public services. A similar model in India could unlock significant revenue streams while ensuring better oversight of betting activities.
Beyond taxation, regulation could also drive innovation and technological advancements in the gaming sector. Startups and established businesses could invest in legal betting platforms, creating new avenues for economic growth. With a formal regulatory framework, banks could operate safely and lessen dependence on informal payments that drive black-market transactions.
What India Can Achieve with Proper Regulation
A well-structured legal framework would address multiple challenges associated with betting. Clear laws would provide better consumer protection, ensuring fair play and security for bettors. Operators would be held accountable for ethical practices, reducing the prevalence of scams and frauds in the industry.
Government oversight would also make preventing illegal activities such as match-fixing and money laundering easier. With the right tracking mechanisms in place, authorities could monitor suspicious transactions and curb the influence of organized crime in betting markets. Regulation would further promote responsible gambling by requiring betting platforms to implement self-exclusion policies and intervention programs for individuals at risk of addiction.
State and central governments could also collaborate to create a uniform licensing model, which would allow for better control and revenue generation. A centralized licensing authority could streamline the industry while allowing individual states to regulate specific aspects according to local needs.
Final Thoughts
Regulation should balance economic benefits with risk control. Strict licensing, transaction monitoring, and responsible gambling rules must guide reforms. India can adopt phased regulation, legalizing select betting forms while keeping high-risk areas under scrutiny.
A cautious rollout allows testing before full implementation. Transparency, audits, and public awareness can boost credibility. Collaboration with tech firms can enhance monitoring and compliance. Instead of outdated bans, structured regulation can curb illicit activities, benefit the economy, and create legal opportunities.
Content Produced by Indian Clicks, LLC
