India Explores Law to Regulate Online Betting and Gambling

The Indian government is evaluating the need for a comprehensive legal framework to oversee online gaming, betting, and lotteries. The Ministry of Home Affairs (MHA) recently held discussions on the matter and directed the Indian Cyber Crime Coordination Centre (I4C) to compile a report on potential regulations, according to sources.

With online betting and lottery activities primarily relying on chance rather than skill, officials argue that stricter regulations are necessary to protect users and prevent financial exploitation. Additionally, concerns about personal data security remain prominent, as users engaging in online chats and forums may be susceptible to scams and hacking attempts.

India is moving toward a more stringent regulatory environment to address these challenges and introduce a structured legal framework that ensures consumer safety. While a final decision on the law is pending the completion of I4C’s report, it is evident that the government is prioritizing enhanced oversight of the industry.

Government Examines Need for Central Oversight

A high-level meeting, attended by senior officials from multiple agencies, including the Intelligence Bureau, took place at the Home Ministry. During these deliberations, concerns were raised regarding the rapid growth of online gaming and betting platforms.

A senior official confirmed that the I4C has been tasked with preparing a report based on these discussions.

"It has been decided that MHA’s Indian Cyber Crime Coordination Centre (I4C) will prepare a report based on the discussions regarding the need for a new law to regulate online gaming, gambling, betting, and lotteries. Since these activities are expanding rapidly, a decision will be made once the report is submitted," the official stated.

Currently, oversight of online gaming falls under the jurisdiction of the Ministry of Electronics and Information Technology (MeitY). The industry operates under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, established under the Information Technology Act, 2000. These guidelines require online gaming platforms to exercise due diligence, failing which they risk losing their immunity from liability for third-party content.

Stricter Regulations for Online Gaming Platforms

Authorities are considering the introduction of a central law to standardize regulation across the country. A key aspect of this proposal is ensuring that celebrities endorsing online betting and gambling activities are held accountable under legal provisions. The government is particularly concerned about platforms manipulating game results, which can lead to significant financial losses for users. Additionally, officials suspect that funds generated from such activities are laundered and transferred in small sums through payment gateways.

An official communication from the central government highlighted the risks associated with online gaming and gambling platforms. These include financial losses, data security threats due to unauthorized data access, addiction risks, and potential exploitation through offshore gambling applications. The government is also weighing the introduction of stronger protections for consumers, including measures to combat misleading advertisements and ensure grievance redressal mechanisms for affected users.

Currently, multiple major platforms are under investigation for deceptive practices, according to government sources. "These online betting and gambling apps are suspected to be duping gamers by manipulating outcomes. Money generated is transferred in small sums through payment gateways. Also, there is no grievance redressal mechanism, player protection measures, data and IPR protection, and safeguards against misleading advertisements," sources stated.

Source:

“New Law On Online Gaming, Gambling, Betting And Lottery Soon? Govt Takes First Step | Exclusive“ , news18.com, February 10, 2025