Online Betting: Challenges in Law Enforcement
As many as 133 betting apps are operating in the country, with 797 cases filed in connection with these applications, revealed Telangana Cyber Security Bureau Director General (DG) Shikha Goel.
A day after Cyberabad Police named several Tollywood stars, including Rana Daggubati, Vijay Devarakonda, Prakash Raj, Manchu Lakshmi, Praneetha, Niddhi Agarwal, and a few social media influencers in an FIR for promoting online betting apps and luring people into investing in them, Goel asserted that orders will be issued to halt operations of these betting apps.
She also warned of action against illegal loan apps. The investigation into betting apps began following a rise in suicides attributed to mounting debts. It has been reported that 25 people, including eight in Hyderabad, ended their lives in 2024 after losing money to online betting games.
The lack of clarity in laws governing online gambling and betting has further exacerbated the problem. There is no national law banning online gambling or betting, as it falls under the State list of subjects. As a result, different states have varying laws on the matter.
The Telangana government amended the Telangana Gaming Act to ban online betting apps, while Andhra Pradesh passed a similar amendment, making online gambling, including betting on sports and games, illegal. The Tamil Nadu Gaming Act also prohibits all forms of online betting and gambling.
Maharashtra and Kerala, however, adhere to the Public Gambling Act of 1867 but do not have specific laws banning online games. Gambling in India is governed by the Public Gambling Act, which criminalizes gambling in physical casinos and betting locations but does not directly address online betting.
In the North East, Nagaland allows certain forms of online skill-based games (such as poker and rummy) but restricts online betting on other games of chance or sports. Sikkim is one of the few states that has legalized online gambling but restricts certain forms of online betting, generally prohibiting online betting on sports or games of chance.
The distinction between skill-based games and chance-based games is critical in determining the legality of ‘Real Money Gaming’ (RMG). While skill-based games like rummy and fantasy sports are exempt under the Prevention of Gambling Act and can be offered to registered users for stakes, games based on chance (e.g., roulette) fall under the category of gambling and are prohibited from being offered for stakes unless regulated by a state-issued license.
With states adhering to different laws to regulate gambling, the fluidity around ‘games of skill’ and ‘games of chance’ only adds to the complexity, making law enforcement even more challenging.
