India's Growing iGaming Market: Betting Apps and the Latest Legal Landscape

India's iGaming sector continues to grow despite the latest taxation rules that many consider much higher. Last year, new tax regulations for iGaming were introduced with the Finance Act of 2023.

According to this, 30% of tax will be deducted from the net winnings players get from iGaming platforms if they exceed INR 10,000. Operators are taxed 28% for every bet value.

That implies that real money gaming platforms are allowed in the country and players can check the latest legal betting apps in India (full review) to see which ones are the safe and best options.

However, even with the latest taxation rules, regulating online gambling activities here is still complex and evolving.

Is iGaming Even Legal in India?

The truth is that there's no comprehensive law that specifically addresses iGaming. That's why it's considered to be in the grey area. The Public Gambling Act of 1867 is what regulated gambling houses in the country, and it has no mention of online-related activities.

While the Information Technology Act of 2000 addresses online activities, this too has nothing on iGaming.

However, there have been several proposed amendments to the IT rules since 2021. That includes the establishment of a central regulatory authority that would oversee online gaming across India. This authority will then be responsible for implementing a comprehensive licensing framework to ensure local consumers are also protected with responsible gaming measures.

Other things covered by the proposed amendments include uniform taxation, advertising of gaming activities, and revenue sharing between the central and state governments.

As of this year, these are still in the draft stage, and in January, the government opened a public consultation period to gather feedback from stakeholders including gaming operators, advocacy groups, and the players themselves.

While iGaming is generally in the grey area, there are already states that decided to regulate such activities. Sikkim allows and regulates online gambling within its borders through the Sikkim Online Gaming (Regulation) Act, 2008, and Sikkim Online Gaming Rules, 2009.

Other states like Goa, Daman, Diu, and Nagaland only allow licensed operators to offer real-money gaming activities.

Meanwhile, states like Telangana and Andhra Pradesh have already banned all sorts of online gambling. Tamil Nadu only prohibits online Rummy and Poker.

However, even if regulations in these states are in place, it seems like the locals are still freely engaging in online gambling. MyBetting India has reported that Telangana is one of the hotspots for online betting.

Why is iGaming Flourishing?

There are several reasons why iGaming is continue rising in the country despite the lack of legislation.

For starters, online gaming sites are more accessible than ever. Most, if not all of the gaming sites are optimized for mobile devices, and with the affordability of smartphones these days, plenty of Indians can easily access gaming sites.

Then there's also the improved internet infrastructure in the country. Since 2022, 5G connection has been rolled out in the country. Airtel has shared that they now have 5G available in all districts in the country while Jio now covers over 7,700 towns and cities.

It can also be factored in that a significant portion of India's population is young, and they tend to be tech-savvy and more accepting of real money gaming activities. It's because it's an activity that is regularly talked about online.

There are now plenty of influencers who would treat gaming activities as if they were video games. Some would stream their gameplay of slots, card games, etc, and directly promote gambling websites by giving out promo codes.

Overall, it's the convenience of being able to gamble online.

What Lies Ahead: Will India Regulate Gambling Activities?

It might be time for India to regulate the activities instead. It seems like the popularity of iGaming is here to stay, and the best that can be done is to protect the consumers.

The proposed amendments are indeed a step toward but that only means it could take a while for comprehensive legislation to be in place. It's not about imposing new rules either the whole process will involve creating mechanisms for licensing, taxation, dispute resolution, and player protection.

For now, only the tax rules will likely hold up. This means that locals can continue to place bets online without getting into trouble. Operators themselves can also only hope that taxation will be better in time.