Online gambling in India: A crisis unfolding behind screens

Last month, I met someone who was going through the difficult process of divorce. She and her husband are both IIM-educated and quite successful in their corporate careers. When I asked her the reason for the separation, I was shocked to hear her answer. Her husband was addicted to online gambling. He had spent over Rs 20 lakh of her money and then stolen lakhs from her account in the last two years. Everything was lost in a popular online betting game

This is not an isolated case. There are many examples where middle-class youth, by the age of 18, have lost Rs 80-90 lakh in online betting and online gaming. In many cases, seeing no hope for their future, they have even committed suicide. This problem has taken hold both in the villages and in the cities. The market for online betting in India is now Rs 25,000 crore annually. The market of the online gaming industry is also almost equally big. Thus we spend around Rs 50,000 crore every year on online betting and online gaming — and surprisingly, this figure is more than the entire higher education budget of India.

We can look at online betting in three ways.

The first is online casinos, where, like real-life casinos, gambling can be played using cards and other types of gambling from home using a mobile or computer. The second type is fantasy league games where people can bet on the results of cricket, football, and other popular sports. The third type is those simple online games on which users can bet among themselves. In this category, simple games like Ludo, Snakes and Ladders, Pool, and Teen Patti are “monetised” by introducing the angle of betting.

What is the reason for such a massive surge in online betting and gambling in India?

First, in online gambling, a person can hide their identity behind the smokescreen of being online. You can use different names — you can hide your face and location. There is guilt associated with gambling, but when someone bets on his mobile phone, the anonymity gives them the opportunity to overcome the social shame.

The second reason is that the companies operating online gambling lure people with their illusion in a very organised and skillful way — which no casino can. The situation is such that housewives and college-going youth are tricked into becoming earning members of the family by engaging in betting. These companies have become massive now — they are hiring the most expensive celebrities to cast their net wider and deeper into the addiction of online gambling.

The third reason is the most formidable.

The law is not only weak but also vague in its dealing with online gambling. The law governing gambling in India is the “Public Gambling Act”, dating back to 1867. Under this, the police and administration can take strict action against people involved in gambling. But there is confusion regarding the definition of gambling in this law.

It considers “game of skill” and “game of chance” as different. Games of skill include games like chess that use strategy and mental ability. In contrast, games that use dice or lotteries, which are completely based on luck, are called “games of chance”. This line between luck and skill is blurry and has become even more complicated in the online age.

Taking advantage of this ambiguity, online betting and gambling have spread rapidly in India calling themselves as games of skill. In many cases, these companies are backed by Chinese investments, and the way this foreign-funded addiction is gripping the entire nation is a matter of deep concern.

What could be the solution to this problem?

First, we need to adapt the laws governing gambling to today’s online landscape. Unless an online is purely based on a person’s individual skills and capabilities — it should be regarded as a game of chance and dealt with accordingly. Second, we have to keep children and youth away from any kind of online betting. It is very important to spread awareness about this in schools and colleges.

Third, it is necessary to control the amount of money that can be spent on online games or betting. Online games can be a source of entertainment but not of income.

Fourth, for those people who are finding themselves or their family members suffering from this, it is necessary to provide facilities like expert helplines through NGOs so that they can be saved in time. Last, the government has so far not taken this problem with the attention and sternness it deserves. The government levied taxes on the income due to online gaming — thereby providing a path of legitimising it. We must take cognisance of the terrible impact online gambling and betting are having on our youth and families. And instead of only seeing this industry as a source of revenue, policymakers should see the darker reality it poses.

Mahatma Gandhi described gambling as a worse addiction than drugs because the harm caused by gambling is permanent and hollows out both family and society. Today this social evil is being presented in a shiny form through mobile phones and computers and we must deal with this.

The writer is former advisor to Dr. APJ Abdul Kalam and founder, Kalam Centre. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.