With the rapid growth of online gaming, particularly real money gaming (RMG), India is witnessing significant challenges. The unchecked expansion has led to financial distress, addiction, and illegal activities. A tragic example includes a 25-year-old MTech student from Hyderabad who died by suicide in April 2025 after suffering losses through online betting. This incident highlights the serious human toll of unregulated digital gambling. Many platforms exploit jurisdictional gaps and VPNs to bypass Indian regulations, making regulation necessary.
Gambling in India is classified as a state subject under the Constitution. Physical casinos, like those in Goa, are permitted for games of chance, while states like Nagaland, Sikkim, and Meghalaya license online games of skill. However, the legal status of online RMG remains ambiguous in most regions, creating a grey area. Operators often label their games as skill-based to sidestep restrictions.
The regulation of online gaming involves several ministries and agencies:
Significant reforms have been introduced to regulate the online gaming sector:
Taxation plays a crucial role in regulation, with a 28% Goods and Services Tax (GST) on total bets introduced in October 2023. From 2024-25, a 30% tax on net winnings further discourages casual participation while enhancing financial transparency.
On March 10, 2025, industry bodies like the Federation of Indian Fantasy Sports (FIFS), All India Gaming Federation (AIGF), and E-Gaming Federation (EGF) adopted a Code of Ethics with ASCI's support. This includes responsible advertising, displaying spending limits, third-party audits, and transparent reporting mechanisms. Popular platforms such as Dream11 and A23 are part of this initiative.
Illegal platforms often lure users with cashback offers, jackpots, and virtual currency systems to circumvent betting laws. For instance, a Cyprus-based platform, PariMatch, amassed 266 million illegal visits in India using mirror sites. Some platforms mislead users by claiming their games are purely skill-based.
States like Telangana, Karnataka, and Andhra Pradesh have imposed blanket bans on RMG. Tamil Nadu's 2022 Act introduced gaming curfews, while Kerala's attempt to ban online rummy faced legal challenges. Enforcement is weak due to VPN use and lack of central coordination.
The proposed central law aims to classify RMG platforms as regulated entities, bringing them under KYC and audit frameworks. Violations could result in up to three years in prison and heavy fines. The law also seeks to hold celebrities and influencers accountable for endorsements.
Experts argue for a single, independent regulatory body akin to the Securities and Exchange Board of India (SEBI) to oversee licensing, dispute resolution, and public awareness. Without such regulation, distinguishing legal operators from illegal ones becomes challenging, as noted by Ananay Jain.
Challenges to regulation include grey areas in legal definitions, multiple jurisdictions, and technological circumvention. User unawareness and platform resistance also hinder progress. MeitY and I4C are expected to finalize draft legislation by late 2025, with states cooperating with central agencies to adopt best practices.
Reforms encourage pop-up warnings, gaming hour limits, and spending alerts. Platforms must now display helplines and financial risk disclaimers. Efforts in public education, especially in regional languages, are increasing to inform users of the risks.
Addiction, indebtedness, and mental health issues are prevalent due to unregulated platforms. Families report substantial financial losses due to impulsive betting. Without early intervention, these platforms can lead vulnerable individuals toward long-term harm.
Users should verify platform registration and licensing, avoid high-stake or unfamiliar apps, and be wary of platforms requesting repeated deposits or personal data. Understanding that addiction is possible, even with "free-to-play" models, is crucial.
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