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Introduction:

The regulation of betting and gambling in India has seen significant developments in recent years. As of 2023, the online gaming industry in India is projected to reach a value of $2.8 billion, driven by increased internet penetration and smartphone usage. However, this growth is accompanied by legal ambiguities and enforcement challenges. Recent state amendments, such as those in Telangana and Andhra Pradesh, have further complicated the regulatory landscape by imposing strict bans on online gambling.

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Jurisdictional Challenges:

• Fragmented Legal Framework:
  • State-Specific Regulations: Different states have enacted varied regulations, creating a patchwork of laws.
    For example: Sikkim has a legal framework for online betting, while states like Telangana and Andhra Pradesh have outright bans.
  • Lack of Uniformity: The inconsistent regulatory environment complicates compliance for operators and creates confusion for consumers. This fragmentation hinders the establishment of a cohesive legal framework.
• Outdated Central Laws:
  • Public Gambling Act of 1867: This colonial-era law does not address online gambling, leaving a significant legal void. Its focus on physical gambling houses makes it inadequate for regulating digital platforms.
  • Ambiguity in Application: The absence of clear guidelines for online gambling under the Public Gambling Act leads to varied interpretations and enforcement practices across states.
• Technological Enforcement:
  • Online Platforms: The rise of online gambling platforms, often based overseas, complicates enforcement. Users can bypass state restrictions using VPNs and other technologies, making it difficult to monitor and regulate these activities.
  • Cross-Border Transactions: The use of international payment gateways and cryptocurrencies further challenges enforcement efforts, as transactions can be hidden or anonymized.
• Consumer Protection Issues:
  • Risk of Fraud: Without a unified regulatory framework, consumers are vulnerable to fraud and exploitation. The lack of oversight on online platforms can lead to issues such as unfair practices and non-payment of winnings.
  • Underage Gambling: The absence of stringent verification processes on many online platforms increases the risk of underage gambling, with potential long-term social and economic impacts.

How Central Legislation Can Address These Challenges:

• Unified Regulatory Framework:
  • Harmonisation: Central legislation can harmonise the fragmented state laws, providing a clear and consistent regulatory environment across India. This can be similar to the GST model, where both central and state governments collaborate.
    For example: The Law Commission of India’s 2018 report recommended a central regulatory framework to manage gambling and betting activities, ensuring uniformity and clarity.
• Modernization of Laws:
  • Update Existing Laws: Modernizing the Public Gambling Act to include online gambling and aligning it with the Information Technology Act can address current technological realities.
    For example: Amendments to include provisions for online betting, defining legal and illegal activities, and setting standards for compliance.
• Technological Enforcement:
  • Advanced Monitoring: Implementing advanced monitoring systems using AI and blockchain technology can enhance regulatory oversight and compliance. This can help track transactions and identify violations in real-time.
    For example: The United Kingdom’s Gambling Commission uses technology to monitor and regulate online gambling activities effectively.
• Consumer Protection:
  • Comprehensive Safeguards: Establishing robust consumer protection measures, including stringent verification processes, fraud prevention mechanisms, and support for responsible gambling.
    For example: Introducing a central helpline for gambling-related issues, mandatory self-exclusion programs, and public awareness campaigns.
• Revenue Generation:
  • Taxation and Licensing: Regulating and taxing online gambling can generate significant revenue for the government, which can be used for public welfare programs.
    For example: Regulated markets like the UK and the USA have successfully generated substantial tax revenues from the gambling industry.

Conclusion:

Addressing the jurisdictional challenges posed by the regulation of betting and gambling in India requires a balanced approach that harmonizes state and central regulations while protecting consumers and leveraging economic benefits. Central legislation can provide a unified framework that addresses the fragmented legal environment, modernizes outdated laws, and ensures effective enforcement and consumer protection. By implementing these measures, India can create a robust regulatory ecosystem that supports a safe and transparent gambling industry, promoting both economic growth and social welfare.

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