India is reportedly considering introducing a new federal online gambling law to regulate the sector.
The Ministry of Home Affairs (MHA) has started looking into the need for a new online gambling law, according to anonymous sources quoted in local media.
The issue was discussed at a recent meeting at the Ministry of Home Affairs, which was attended by senior officials from various agencies, including the Internal Security and Intelligence Services of India.
Earlier, the Ministry of Electronics and Information Technology had introduced a self-regulatory mechanism for the skill-based gambling sector in 2023.
However, this approach to self-regulation, which involves handing over oversight to non-governmental bodies, has been criticized for leaving significant regulatory gaps.
An official told News18: “It has been decided that MHA’s Indian Cyber Crime Coordination Centre (I4C) will prepare a report based on the discussions regarding the need for a new law to regulate online gaming, gambling, betting, and lotteries.
“Since these activities are expanding rapidly, a decision will be made once the report is submitted.”
The paper’s sources also say that glitches in the current system have led to several large businesses being investigated by central authorities for cheating players.
Celebrities who promote illegal gambling activities that are not permitted under India’s gambling laws could also get into trouble. In this case, this refers to violations of the Indian Public Gaming Act of 1867, which prohibited the offering of games of chance.
While the definition has changed over time and often varies from state to state, skill-based gambling often includes poker, rummy, tinpatti or chess.
The government has raised concerns that offshore gaming platforms are cheating players out of winnings by manipulating game outcomes.
While the exact form of the new law remains unclear, if lawmakers decide to regulate sports betting and online gaming, India is likely to become one of the world’s largest markets.
Cricket betting, in particular, has long been an outlier. India’s nascent skill-based gambling sector has seen some success in recent years, although its further expansion is hampered by a 28% goods and services tax.
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