ROLLING THE DICE: THE LEGALIZATION OF SPORTS BETTING IN INDIA

ROLLING THE DICE: THE LEGALIZATION OF SPORTS BETTING IN INDIA
Rohit Kumar
LL.B, IV Sem.
School of Law
Manav Rachna University, Faridabad
Date : 21 March, 2025

“With the rise of digital platforms, sports betting is no longer confined to smoky betting houses—it’s now just a click away. But should India legalize and regulate it, or will it open Pandora’s box of fraud, addiction, and financial ruin?”

Introduction: The Betting Boom in India
Sports betting has always been a contentious issue in India. While cricket, football, and kabaddi enjoy massive followings, the underground betting industry has flourished in secrecy. With the advent of online platforms, betting has become more accessible than ever, sparking intense debate over whether it should be legalized and regulated. Some argue that legalization can generate revenue and curb illegal activities, while others warn of potential risks, including addiction, fraud, and economic instability.
The Current Legal Status of Sports Betting in India
Sports betting in India falls into a legal gray area. The Public Gambling Act of 1867, a colonial-era law, governs most gambling activities and prohibits running or being in charge of a gambling house. However, this law is outdated and does not address online gambling or modern betting practices.
State-Wise Variations in Gambling Laws
Since gambling is a state subject, individual states have the power to regulate or ban it. Some states, like Goa, Sikkim, and Daman, have legalized certain forms of gambling, including casinos. Sikkim even attempted to regulate online gambling by issuing licenses for online sports betting, but access was restricted to people within the state.
Games of Skill vs. Games of Chance
The Supreme Court of India has ruled that games involving a substantial degree of skill—such as rummy and horse racing—are legal. However, the distinction between “skill” and “chance” is murky when applied to sports betting. Supporters argue that betting on sports requires knowledge, analysis, and prediction skills, making it a game of skill rather than chance. However, critics argue that external factors (like match-fixing) make it a risky venture.
The Dark Side of Online Betting: Rising Concerns
With the digital revolution, online gambling and sports betting have exploded in India. But while it has provided convenience to users, it has also raised serious concerns.
1. Online Gambling Frauds and Scams
The online betting industry has seen a sharp increase in fraud cases. Some of the most common scams include:
•Fake Betting Apps & Websites: Many unregulated betting platforms lure users with attractive offers and then disappear with their money.
•Identity Theft & Data Breaches: Players often have to provide personal and financial details, making them vulnerable to hacking and phishing scams.
•Rigged Algorithms: Some shady platforms use software that manipulates outcomes, ensuring that users lose money over time.
2. Gambling Addiction and Social Consequences
Legalization would mean widespread accessibility, potentially leading to gambling addiction, especially among young people. Cases of people losing their life savings and getting trapped in debt cycles due to gambling addiction have been increasing.
Studies show that:
•Over 30% of online gamblers experience financial difficulties.
•15-20% develop signs of compulsive gambling behavior.
Addiction not only affects individuals but also leads to social problems like increased crime rates, family conflicts, and psychological distress.
3. Match-Fixing and Corruption in Sports
One of the biggest fears surrounding legalized sports betting is the rise of match-fixing. India has already seen multiple cricket match-fixing scandals, including the IPL spot-fixing scandal in 2013. If betting is legalized without strict oversight, the integrity of sports could be compromised.
4. Money Laundering and Black Market Betting
Illegal betting is already a multi-billion-dollar industry in India, with underworld connections and money laundering networks fueling it. If regulations are not properly enforced, online betting could become a tool for criminals to launder money under the guise of legal transactions.
What Steps Should Be Taken? The Way Forward
If India decides to legalize sports betting, it must adopt a strong regulatory framework to minimize risks and ensure a safe and fair betting environment.
1. A Centralized Regulatory Authority
A national-level regulatory body, similar to the UK Gambling Commission, should be established to monitor and regulate betting activities. This body should:
•Issue licenses only to legitimate and compliant betting companies.
•Monitor transactions to detect fraudulent activities and money laundering.
•Enforce strict penalties on illegal betting operators.
2. Strict Age and Identity Verification
To prevent underage gambling and identity fraud, KYC (Know Your Customer) verification should be mandatory for all online betting platforms. Users must provide valid government-issued IDs to register and place bets.
3. Anti-Match-Fixing Measures
Sports organizations and betting regulators must work together to detect and prevent match-fixing. Measures such as:
•Real-time monitoring of betting patterns,
•Whistleblower protection for reporting corruption,
•Heavy penalties for players and officials involved in match-fixing,
should be implemented.

4. Responsible Gambling Programs
Governments and betting companies should promote responsible gambling awareness programs. This can include:
•Self-exclusion tools for players who wish to limit their gambling.
•Helplines and counseling services for people struggling with gambling addiction.
•Limits on betting amounts to prevent excessive losses.
5. Taxation and Revenue Allocation
Legal betting could generate thousands of crores in tax revenue if properly regulated. The government should:
•Impose reasonable taxes on betting companies to avoid driving users to illegal platforms.
•Use part of the revenue for public welfare programs, including education and addiction recovery initiatives.

Conclusion
The question of whether India should legalize sports betting is not simple. While regulation could bring transparency, generate revenue, and curb illegal betting, it also poses serious risks like addiction, fraud, and corruption in sports.The key to successful implementation lies in striking a balance—a well-monitored, strictly regulated betting industry can prevent the pitfalls of gambling while harnessing its economic benefits. As the debate continues, the government must ensure that any decision made prioritizes public welfare, financial security, and the integrity of sports over mere profit.Only time will tell whether India is ready to embrace a legalized sports betting system, but one thing is certain—without robust regulations, the risks far outweigh the rewards.