India’s online gambling industry is a lottery

Gambling has evolved over the years to become organised and widespread in India, thanks to its online proliferation.

For two years Darshan Babu borrowed from moneylenders to bet on cricket matches. Pretty soon, he owed close to Rs 1.5 crore ($US180,000). As the debt grew and creditors began putting the squeeze on Darshan and his young family, it all became too much.

On March 18 this year, Darshan’s  24-year-old wife, Ranjitha V, committed suicide. In a note, she blamed excessive pressure from creditors.

A subsequent police investigation found a “troubling narrative” that revealed Babu, an engineer in the Karnataka state irrigation department, borrowed large amounts from different moneylenders during the Indian Premier League tournaments between 2021 and 2023.

A month before Ranjitha V took her life, the Karnataka government declared it would enact laws to curb betting on cricket and online gambling.

The state’s home minister hinted that part of the problem of continuing online gambling was the central government’s incentive on getting 25 percent Goods and Services Tax (GST) on proceeds from online gambling.

Gambling’s long, sordid history

India boasts a long and sordid gambling tradition. It is embedded deep in the country’s cultural and social fabric.

The story of the roll of the dice in the epic, Mahabharata, cost one of two warring princely clans their kingdom.

Traditionally, people would bet on rooster fights and play card games such as rummy which is considered a game of skill.

Games on which people wagered, such as teen patti (similar to poker) and matka (a lottery-like game) were popular across many states. Indeed, gambling’s pervasive nature is reflected in its deep association with festivals and social gatherings.

The  internet has revolutionised the gambling industry.

Online gambling platforms have mushroomed with the proliferation of smart phones and cheap internet access. A simple Google search throws up as many as 22 online betting apps. Artificial Intelligence, Virtual Reality and blockchain are driving the online gambling experience.

This transformation has presented opportunities and challenges, underscoring the importance of understanding the evolution of gambling in India.

Anti-gambling laws

Gambling in India is complex and controversial, with varying laws in different states. Most states prohibit gambling, with exceptions for lottery and horse racing. Goa and Sikkim are the only states that allow casinos.

The Public Gambling Act of 1867 is a central legislation that prohibits running or being found in a “common gaming house.” However, it excludes “games of skill” such as rummy.

Despite prohibitions, illegal gambling is estimated to be a $US60 billion market in India.

India’s online gambling market is estimated  to have  12.17 million users. That number is expected to grow by 8.5 percent a year until 2027.

Most states do not have laws against online gambling, although Andhra Pradesh and Tamil Nadu banned online gaming, betting and gambling in 2020.

Online gambling exists in a legal grey area. Sikkim permits online betting through licensed operators, but the Information Technology Act prohibits sharing information that encourages gambling online.

Online platforms and apps offer various games – from traditional card games to games found in casinos and sports betting. A significant advantage of online gambling is convenience, choice of game and anonymity.

Gamification has significantly influenced the popularity and growth of online gambling. By incorporating game design elements and mechanics into gambling platforms, operators have created more engaging, addictive, and profitable experiences for players.

Features such as leaderboards, rewards, achievements, and challenges are commonly used to enhance the gaming experience.

Many online gambling platforms offer loyalty programmes to reward players for their engagement. Additionally, daily challenges and missions are implemented to encourage regular logins and participation, ultimately enhancing player engagement and extending their time spent on the platform.

Online incentives

A key example is the use of point systems and leaderboards on apps such as 1xBet and Parimatch. Players can earn rewards for placing bets and completing challenges while competing against others to drive continued play.

Gambling apps also commonly feature bonus rounds and free spins in their slot games, providing an extra element of excitement and the chance to win big. This is seen on platforms such as Dafabet and Megapari.

Dafabet and similar apps use social features to make games more engaging. With these apps, users can compete with their friends. This creates a feeling of community and healthy competition among users.

Operators also leverage immersive graphics, animations, and sound effects to make the gambling experience more visually appealing and entertaining.

For example, BlueChip.io features a cricket-themed casino with games such as Andar Bahar that incorporate the sport’s imagery and sounds.

However, the increased use of gamification has also raised concerns about problem gambling and the fading lines between gaming and gambling.

Balancing innovation with responsible practices will be an ongoing challenge as the industry evolves.

The need for regulation

The future of gambling in India lies in balancing regulation and innovation.

There is a growing recognition of the need for a comprehensive legal framework that addresses the unique challenges posed by online gambling. Such a framework should include provisions for licensing, taxation, player protection, and responsible gambling practices.

Technological advancements such as blockchain and artificial intelligence offer promising solutions for enhancing transparency and security of online gambling platforms.

Blockchain technology can create tamper-proof records of transactions and game outcomes, ensuring fairness and accountability. AI can help identify and mitigate problem gambling behaviour through predictive analytics and personalised interventions.

In the 18th century, Benjamin Franklin warned that “games of chance are traps to catch schoolboy novitiates and gaping country squires, who begin with a guinea and end with a mortgage”.

This danger resonates even more profoundly in the digital age where access is easy and the stakes much higher.

Celebrated Russian writer Fyodor Dostoevsky turned to compulsive gambling back in 1863 while on a tour of Europe where he “developed a passion for roulette”. Three years later, his novella, The Gambler, was published allowing him to repay his gambling debts.

But far from the Dostoevskian experience is the gamification of gambling in India.

This has been a game-changer, making the gambling industry more organised and accessible. Its careful regulation and control cannot be overstated.

India can adopt a balanced approach to tackle the gambling industry’s potential while taking into account the interests of its people.

Megha Aggarwal is a Research Fellow at O P Jindal Global University’s Jindal School of Psychology and Counselling. Her expertise lies at the intersection of emotion recognition, psychology of deception, cyberpsychology, artificial intelligence (AI) and emotion and affect psychology. She earned a masters degree in forensic psychology from National Forensic Sciences University. Her book, Nostrum: Falling in Love with a Psychopath, I am No More Afraid of Demons, was published in 2019.

Originally published under Creative Commons by 360info™.