- Strict anti-money laundering measures to prevent financial crimes.
- Establishing an independent gambling regulator to oversee both offline and online betting activities.
- Public awareness campaigns to mitigate the social harms of gambling.
- Research Methodology
This study employs a qualitative research approach, using secondary sources such as government reports, judicial rulings, scholarly articles, and case studies. Legal analysis is conducted through doctrinal research, examining statutory laws and judicial precedents in India and comparative jurisdictions.
- Sports Betting in India: Growth and Legal Landscape
Sports betting in India have surged with the rise of online platforms, mobile accessibility and the popularity of sports like cricket and football. Despite its rapid growth, the industry operates in a legal grey area due to outdated laws like the Public Gambling Act, 1867, and inconsistent state regulations. While courts have differentiated games of skill from chance, regulatory gaps persist, fueling illicit betting markets and match-fixing concerns. This paper examines the growth, legal framework, challenges and potential reforms needed for a structured sports betting industry in India.
4.1 The Rise of Online and Offline Sports Betting
Sports betting in India have expended rapidly, driven by both traditional (offline) and digital (online) platforms. Offline betting has long existed through informal networks and underground syndicates, particularly in cricket. Despite legal restrictions, unregulated betting continues to thrive, often linked to match-fixing scandals and illegal gambling rings (Hill, 2010).
The rise of online sports betting has further transformed the industry, with mobile apps, digital wallets and fantasy sports platforms like Dream11 and MPL making betting more accessible (Forrest, 2021). Online platforms leverage real-time data; AI based odd prediction and seamless payment gateways, attracting millions of users (Williams, Brown &Thomas, 2022). However, the absence of a comprehensive legal framework has led
to concerns over fraud, addiction and money laundering (Kapadia, 2021).
As both online and offline betting markets grow, the need for regulatory clarity and consumer protection becomes increasingly urgent. This paper explores the trends, challenges and potential policy reforms required to balance industry growth with legal oversight.
4.2 Existing Legal Framework
The legal framework governing sports betting in India is fragmented with outdated central laws and varying state regulations. The Public Gambling act, 1867, a colonial era law, serves as the primary legislation, prohibiting most forms of gambling but failing to address modern online betting platforms (Kapadia, 2021). Since gambling is a state subject, individual states have the power to regulate or ban betting activities, leading to inconsistencies in enforcement (Law Commission of India, 2018).
Judicial interpretations have played a key role in defining betting laws. The Supreme Court has distinguished games of skill from games of chance, allowing platforms like Dream11 to operate legally, while traditional betting remains largely restricted (Forrest, 2021). However, the Information Technology Act, 2000, which governs online activities, does not explicitly regulate online gambling, creating a legal grey area for digital betting operators (Williams et al., 2022).
Some states, such as Sikkim, Nagaland and Meghalaya, have introduced licensing models for online gaming and betting, while others like Tamil Nadu and Andhra Pradesh have imposed bans (Kapadia, 2021). Despite Growing demand, India lacks a uniform national policy on sports betting, leaving regulatory gaps that fuel illegal syndicates and tax evasion.
- The Public Gambling Act, 1867: Prohibits gambling but lacks provisions addressing online betting.
- Information Technology Act, 2000: Regulates online transactions but does not explicitly cover betting.
- State-Level Variations: Goa, Sikkim, and Nagaland permit regulated gambling, while other states maintain a strict ban.
In Punjab, the legal framework