The Great Indian Gaming Debate: A Critical Look at the Law
By Team Newsable | First Published Jun 1, 2023, 4:45 PM ISTUday Walia discusses the current legal landscape in India, the debate over anti-colonial laws, money laundering, gambling problems in India compared to Australia and the UK, and where the discourse is heading when talking about regulating the Indian gambling industry.
India's legal landscape on gambling and gaming is different from European countries. While states have the power to create their own legislation based on the national Public Gambling Act, there hasn't been an overall legislative push, making it challenging to regulate and license online gambling.
In a SevenJackpots Podcast, Uday Walia from Touchstone Partners, an Indian leading corporate commercial law firm, with offices in Delhi, Bangalore and Bombay, providing cross-border advice often related to foreign investments, recently sat down with casino expert Felicia Wijkander, discussing the Indian gambling laws and where it could head in the future.
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The two take a closer look at how the laws look today, the complexity of Indian laws on gambling, as well as the potential reasons behind why some states decide to regulate
gambling while others opt for a ban.
In this article, we will, based on the podcast, discuss the current legal landscape in India, the debate over anti-colonial laws, money laundering, and gambling problems in India compared to Australia and the UK, and where the discourse is heading when talking about regulating the Indian gambling industry.
The Legal Landscape of Gambling in India: The Public Gambling Act and the Debate over Anti-Colonial Laws
The Public Gambling Act has been in existence for a long time, 1867 to be exact, and is heavily influenced by 1800s England where gambling dens and public gaming houses were the norms. However, India has been dragging the Public Gambling Act along, and there hasn't been an overall legislative push to regulate and license online gambling.
According to Uday Walia, "If I place a bet from my living room on the Internet, is my living room now the sort of gambling den that you are worried about? There are some political connotations around gambling that we have seen. That means that successive governments haven't answered those questions.
The debate over anti-colonial laws is still ongoing, with the Public Gambling Act considered a colonial-era law that needs to be repealed or amended.
Money Laundering: The Greatest Problem with Gambling
Uday Walia believes that the single greatest problem with gambling is not addiction, and it's not the social evils; it's money laundering.
He said, "The problem is money laundering. And the best, or the single greatest reason to regulate it, is to cut out on avenues of money laundering."
To address money laundering, he suggests that gambling should be regulated, and the government should impose strict norms to ensure that gambling operators are transparent and accountable.
Gambling Problems in India: Female Votes Matter
India's gambling industry is currently in a state of flux. While some states have experimented with regulating and licensing gambling, there hasn't been an overall legislative push to regulate and license online gambling.
According to Uday Walia, "I think it’s all coming out of female votes because the perception of gambling is very different if you are a rural woman versus if you’re a rural man. For instance, in fishing communities, a lot of fishermen are daily wage earners, and the fear is, just like with alcohol, that they’ll spend their earnings on it [gambling] before they reach home. It’s coming across as the government cares for them [the women], and that this paternalistic approach is something that appeals to them. However, I think the Indian voter is far more sophisticated than that. This might have worked 20, 30 years ago, but the Indian voter has moved on."
Gambling Problems in India: A Comparison with Australia and the UK
According to a study conducted by the All India Gaming Federation, the illegal betting market in India is worth over $150 billion, and the legal betting market is only worth $1.5 billion. The study also estimated that the Indian government could generate over $1.5 billion in revenue per year if they legalized sports betting.
Compared to The UK, India's gambling industry is still in its infancy, and there's a lot of potential for growth. Uday Walia suggests that the Indian government should follow UK’s model of licensing and regulation to tap into the potential of the gambling industry.
Conclusion: Towards Regulating the Indian Gambling Industry
In conclusion, the Indian gambling industry faces a number of challenges that must be addressed in order to establish a fair and responsible regulatory framework. While the legal landscape remains uncertain, there is a growing recognition that the industry needs to be regulated to protect players and combat issues such as money laundering and addiction.
The Indian government has an opportunity to learn from the experiences of other countries and create a regulatory framework that balances the interests of the industry and the public.
Only by doing so can the Indian gambling industry reach its full potential and operate in a responsible and sustainable manner.
The author is a partner at Touchstone Partners. Views expressed are personal
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