From Boom to Ban: The Rise and Fall of India’s Online Betting Apps
India has outlawed online real-money games to curb addiction, but critics warn the ban will push players to unregulated operators and damage a booming industry.
Kartik Srinivas (name changed) still flinches at the mention of online betting. What started in 2019 as a way to win quick cash turned into a five-year addiction costing him 1.5 million rupees ($17,000).
Faced with mounting losses, Srinivas tried apps, local bookies and international sites before the habit consumed his savings, salary and loans from friends.
Ban on Real-Money Games
Earlier this year, India passed a federal law outlawing online real-money games like poker and fantasy sports. Providers face up to three years in prison and fines of 10 million rupees. Promoters risk two years and 5 million rupees, while users are considered victims, not offenders.
Government Justification
IT Minister Ashwini Vaishnaw told parliament that real-money gaming had harmed 450 million Indians, causing over 200 billion rupees in losses and triggering depression and suicides. The government framed the ban as necessary to protect consumers.
Industry Backlash
The move shocked an industry that once boasted 400 startups, $2.3 billion in annual taxes and 200,000 jobs. Major platforms like Dream11 and My11Circle have suspended real-money operations. Critics say the law was rushed and ignores court rulings categorizing many games as skill-based.
Industry experts warn that banning legal platforms will drive players to unregulated bookies, offshore apps and unscrupulous operators operating via WhatsApp and VPNs.
Debate Over Skill vs. Chance
Legal experts and high courts have repeatedly ruled that fantasy sports and similar contests involve skill. However, critics argue algorithms give platforms an unfair edge, effectively amounting to gambling.
India’s abrupt ban on online real-money games aims to curb addiction but may push players toward unregulated markets and undermine a thriving sector.
This topic was reported by BBC News.
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