UPDATE: India is on the verge of implementing a sweeping ban on all online gambling as the Cabinet has just approved the controversial Promotion and Regulation of Online Gambling Bill. This urgent move could disrupt the entire gambling landscape in India, impacting established sectors like sweepstakes, social casinos, and skill-based gaming.
The proposed legislation, set to take effect soon, outlines harsh penalties for violators, including prison sentences of up to three years for operators and fines reaching $100,000. Furthermore, all gambling advertisements will be eradicated from media channels, including digital platforms, television, radio, and physical locations. Financial institutions will also face stringent restrictions on processing gambling-related transactions.
Officials have not clarified the motivation behind this drastic crackdown on the gambling sector, especially as unregulated operators continue to attract players within India. Critics argue that a complete ban could unintentionally bolster the black market, forcing players into illegal gambling avenues.
In addition to the potential ban, India is considering a significant tax increase on gambling activities, raising the goods and services tax from 28% to 40%. This decision has raised eyebrows, as it seems to stem more from a desire to tighten regulations than from a thorough analysis of illegal gambling trends.
India’s approach mirrors the hardline stance seen in other jurisdictions, where increased taxation and regulatory hurdles have often led to diminished player protections and a flourishing underground market. As these developments unfold, stakeholders in the gambling industry are left anxious about their future and the potential ramifications for players.
With this bill poised to reshape the gambling landscape in India, all eyes will be on the government to see how it balances regulation with player safety. The situation is rapidly evolving, and further updates are expected soon as the public and industry await clarity on the implications of this significant legislative shift.
