Is Online Betting Legal in India?

Online Betting Laws in India

As per the new rules, online real-money games need the SRBs’ approval to be made available to the users. Any game that gets the nod is called a ‘permissible online real money game’ or ‘PORMG.’

But for games to get SRB approval, there are various rules to follow. For example:

1. Section 3, Clause (a) states that it should not allow wagering on outcomes.
2. The OGIs (Online Gaming Intermediaries) must comply with obligations under Rules 3 and 4. Rule 3 restricts the content, while Rule 4 requires them to appoint a grievance officer.
3. They need to keep in mind laws related to minors.
4. Do thorough KYC of the users that want to deposit money.
5. Tell the users in detail their policy for deposits, distribution of winnings, how winners are determined, etc.
6. OGIs need to have a mark of verification.
7. Most importantly, they need to follow the framework of the SRBs.

So what do these laws mean for betting in India?

Impact of the New Laws

Since betting sites offer wagering on outcomes, it is unlikely that platforms like Betway, Bet365, etc., will get the approval of the SRBs.

However, some ambiguities in the law need to be addressed.

For starters, the laws do not differentiate between a game of skill and a game of chance. This is important because wagering means risking your money on an uncertain event in the hopes of making more by guessing the outcome.

So then, is betting on a game of skill allowed? Can you bet on horse races, as these have been held as a game of skill by the supreme court in India?

Similarly, in fantasy sports, the person whose team has the highest point is awarded real money. This can also be argued as wagering on the outcome but has been held as a game of skill by higher courts.

In our opinion, the framework of the SRBs is going to be crucial to clearing these doubts.

But what are these SRBs? Who is going to form it, and by when?

Self-Regulatory Bodies (SRBs)

These Self Regulating Bodies are going to be non-profit companies comprised of stakeholders in the online gaming industry, mental health professionals, people with experience in protecting children’s rights, a board of directors with no conflict of interest, etc.

A few things you should know about the SRBs:

• SRBs have 3 months to approve or deny a real money game.
• However, they can briefly allow the game to operate based on the initial information furnished.
• The SRB can also suspend or revoke verification if it feels the game is not in compliance with the new IT rules.
• SRBs have to provide written reasons for why the game is approved, denied, or banned.
• They need to appoint a grievance officer that needs to address complaints within 24 hours.

And as for their timeline, at least 2 proposals for forming the SRBs have been sent. One of the proposals is from the All India Gaming Federation (AIGF), while the other is from the members of the e-gaming Federation (EGF).

The decision ultimately lies in the hands of the MeitY, and we can expect the SRBs to be formed in the next 2-3 months.

So, is Online Betting Legal or Illegal in India?

Online betting is not legal, but neither illegal in India. This is mainly because of the ambiguity in the laws we discussed above and the bans on some betting apps.

Yes, MeitY has been directed to block around 232 apps which include betting apps and sites like Betway, Bet365, and 1xBet.

But the ban hasn’t been fully enforced, which means some sportsbooks continue to operate like usual, whereas some are able to provide service via alternate sites.

It is also important to note that no one in India has been punished for online betting yet, and neither do the amendments suggest any punishment or fines towards users or the sportsbooks.

For the rest of the country, there will be better clarity on the new laws once the SRBs are set up. The banned sportsbooks can then make modifications to suit Indian players and laws, apply to the SRBs for approval, and have the ban overturned.

In the meantime, if you want to get into the action, here are some sportsbooks that aren’t banned and have trusted licenses.

Some Trusted Betting Sites in India

• Ideal for cricket betting

Bet

• ₹20,000 in free bets

Bet

All of the above-mentioned sites are licensed and come with important features that ensure safe and responsible betting.

Plus, they have the necessary features to ensure you have all the info needed to place the right bets, like live updates, stats, etc.

Takeaway

Truth be told, Indians sure do have an appetite for online betting. Online betting industry stats show that it has grown from $0.44 B to $1.4 B in the last 6 years and is expected to rise to $2.47 B by 2027.

But betting, whether online or offline, continues to see pushback from some sectors. This is mainly because of its socio-economic impact, especially on the youth. Furthermore, it is also seen as a haven for money laundering.

However, if done with proper licensing, KYC, etc., it can be a great source of revenue for the states and the country. For example, casinos contributed ₹135 crores to Goa’s revenue in 2013.

And yes, it can be done legally. Countries like the UK, France, and Germany have shown the way.

India’s laws on online betting are evolving, with more changes expected in the coming years. Whether the government sees it as a source of income in the future and capitalizes on the big market is yet to be seen.

In the meantime, we are in touch with the betting platforms to see how they plan to adapt to the new rules in India and will provide you with an update soon.