Analyst: India real-money online betting ban to stifle economic potential?
Reports indicate that the BJP possesses enough of a majority to pass the law through the Upper House. Indian gaming law expert gives Gambling Insider his view.
Key points:
– The real-money online gambling bill has already passed India’s Lower House
– The legislation is now expected to pass through the Rajya Sabha
– This latest development comes amid a flurry of recent gambling legislative changes in the Asian market
In the wake of reports yesterday that India’s Lower House of Parliament had passed a bill seeking to outlaw real-money online gambling, local experts have now begun to indicate that the bill is likely to pass through the Rajya Sabha – India’s parliamentary Upper House.
To confirm, it hasn’t yet. But the the flurry of reports suggesting it is a done deal are based on the political likelihood.
Indeed, specified as part of the bill is the definition of online real-money games as any digital game that involves the deposit of money or stakes. In effect, this eliminates most standard online gambling practices from the legal market and prohibits operators from running, advertising or endorsing the games in any way. Esports and social games are, however, excluded from this definition of online real-money games.
The proposed change to the law is centred around concerns relating to fraud, gambling addiction and a lack of legislative centralisation over gambling across differing Indian states. Any operators or related persons found to be in breach of the law, if it is passed, could face up to five years in prison and be subject to fines of up to RS 1 crore (US$120,000).
Speaking exclusively to Gambling Insider, Indian gaming law expert, Manav Bhargava, said: “By banning all forms of online real-money gaming, including skill-based games, the Bill risks driving players to unregulated markets, where consumer protection and oversight are minimal.
“Instead of criminalising a sector that has driven innovation and compliance in other jurisdictions, India should consider a regulated model that safeguards players while unlocking significant economic potential.”
Good to know: The inception of this new bill would see the formation of a new regulatory body to enforce the legislation
Conversely, this latest action from the Indian Government has seen it take on an entirely different direction regarding online gambling legislation to neighbouring Sri Lanka, which has just passed a new Gambling Regulatory Authority bill.
The inception of a new regulatory body in this market comes following a recent ramp up in efforts to broaden gambling regulations in Sri Lanka in order to expand the nation’s gambling market.
Elsewhere in Asia, Thailand was also looking to pass land-based regulations for integrated casino resorts, before this process stalled.
However, recent tensions in the Philippines has seen growing support amongst fringe groups for a similar ban on online gambling to this most recent (and now likely) legislative change in the Indian market.
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