Online Casinos

 

The rapid growth of the online casino industry in a country like India, where brick-and-mortar casinos are scarce and mostly located in major cities, is not surprising. There are various reasons for this expansion, such as personal preferences and the regulations surrounding gambling in the country.

In India, most players are turning to online casinos for their convenience and game variety, which cater to diverse preferences. Compared to traditional brick-and-mortar establishments, online casinos are often preferred by gamblers due to attractive bonuses and promotions that potentially increase winning chances. 

Aman Jain at ValueWalk clarifies that players desire to win big, yet not all the best online casinos will provide such a chance to materialize their dreams. In this regard, a few best payouts online casinos can be segregated with features, which include the return-to-player (RTP) ratio, jackpots, prize pools, bonus offers, payout limits, and even the speed of withdrawals. People would be more inclined to choose an entertaining games offering platform, with the promise of the best payouts.

 

Legal Framework 

 

The Public Gambling Act of 1867 governs the gambling industry in India. Although under the Act, it is illegal to bet and gamble on any games of chance, games entirely based on skill are permissible. The PGA does not explicitly define or differentiate between skill and luck, but their distinctions have been made by the courts based on the predictability of the outcome of the game. While the Act talks about skill and chance, it does not address online gambling. The ambiguity of the PGA makes the regulation of gambling in India a bit complex, allowing the online gambling industry to operate in a gray legal framework. The PGA primarily focuses on land-based gambling, due to its enactment during the colonial era, predating online gambling.

 

Differences in State Policies 

 

Gambling laws in India vary from state to state, so it is not surprising to find that some states have banned gambling altogether, while in states like West Bengal and Maharashtra, gambling is prohibited except for lotteries and horse racing. Each state has the power to make its own gambling laws under the Seventh Schedule to the Constitution of India, which specifies the allocation of powers and functions between the Union and the State legislatures.

States like Telangana, Assam, and Odisha have very strict gambling laws that prohibit all forms of gambling, including games of skill. Sikkim and Goa have legalized licensed casinos to boost tourism, an important source of their revenue. Most Indian states still operate under pre-internet gambling laws that still need to be amended due to the changes brought about by online technology.

 

Growth of the Online Gaming Industry

 

Despite the lack of clear regulations, the Indian online gaming industry, including casinos, is expected to reach $8.6 billion by 2027. This is due to the adoption of various digital payment systems and the increased use of smartphones. Statistics estimate that 425 million people made up the total population of online gamers at the end of the 2023 financial year, spending an average of 10–12 hours per week. Players are using Virtual Private Networks (VPNs) to connect to offshore gaming platforms from within the country. These casinos have become the go-to platforms for most Indian gamblers. 

 

Legal Regime for Online Game Operators 

 

Lawmakers are trying to offer regulatory solutions to the online gambling industry as best as they can through the Information Technology Act 2000. Although it was originally established to regulate e-commerce, it is now primarily used to govern various aspects of online activities, including gaming. The Ministry of Electronics and Information Technology made gaming amendments to the Intermediary Guidelines and Digital Media Ethics Code in 2023, aiming to provide a regulatory foundation for an industry that has long operated without proper governing laws. 

While the online gambling industry is rapidly growing, the lack of uniform regulations may lead to legal risks for both online casino operators and local players. The industry has significant economic potential, but it is limited by its unclear laws.