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Analyst warning: India's full ban on real money online gambling could stifle economic potential

PASA News
PASA News
·Mars

India's lower house of parliament has passed a bill to ban real money online gambling, causing significant concern within the industry. Multiple sources indicate that the ruling Bharatiya Janata Party also holds a majority in the upper house, making it highly likely that the bill will be passed soon.

The bill explicitly defines "online real money games" as any digital game involving deposits or wagers. This means that most common online gambling activities will be excluded from the legal market, and operators will not be allowed to conduct, promote, or endorse such businesses in any form. However, it is worth noting that esports and social games are not included in the ban.

The main goal of the legislation is to address issues of fraud, gambling addiction, and the lack of uniform regulation across Indian states. Once officially enacted, operators and responsible individuals who violate the law will face up to 5 years in prison and a fine of 10 million rupees (approximately 120,000 USD).

Indian gambling law expert Manav Bhargava, in an interview with Gambling Insider, stated: "The bill covers all forms of online real money games, even those based on skills. The result could push players towards an unregulated grey market, where there is a lack of consumer protection and no assurance of industry transparency." He emphasized that India should learn from the experiences of other jurisdictions to develop a regulatory model that balances compliance and innovation, rather than simply criminalizing, to unleash the economic potential of the industry.

The bill will also promote the establishment of a new regulatory body responsible for enforcing the regulations.

In regional comparison, India's policy contrasts sharply with neighboring Sri Lanka, which recently passed a Gambling Regulatory Authority bill to further relax controls on the gambling industry to attract investments and expand the market. Meanwhile, the process of legislation for integrated resort casinos in Thailand has stalled, and in the Philippines, social tensions have led more groups to support an Indian-style online gambling ban.

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