SBC News Voice of the Sports Betting Industry
Multiple Indian media outlets report that the government of Karnataka is evaluating whether to entirely legalise all online and land-based betting in the state.
Reporters from the Hindustan Times, The Statesman and the Deccan Herald, among other outlets, were informed about the government’s plans today (9 April).
Gangadharaiah Parameshwara, the state’s Home Minister, told media that the state is in the process of drafting a new law which will fully regulate gambling and that the government has been engaging with the industry on this.
“I chaired a meeting regarding online betting and gambling yesterday along with the IT Minister. Representatives from the industry were called,” he said in a press conference.
“There is nothing to regulate them so far. They have agreed to the introduction of a licence system and a regulation as per law. Once the draft is submitted, we will bring in a new law.”
Karnataka to join a small club of states
The Minister added that he has assembled a committee consisting of the aforementioned industry representatives alongside senior government officials. This committee has been tasked with formulating draft legislation to regulate the industry within one month.
This bill would then need to be considered and approved by the state legislature in the capital of Bengaluru – the 224 members of the Legislative Assembly and the 75 members of the Legislative Council.
As the eighth largest of India’s 28 states and eight territories, Karnataka regulating betting under a legal framework would mark a significant boost for gambling in India and across the wider Asian continent.
Gaming in India is something of a legal grey area, and legislating and regulating it is largely left as a matter for state governments. As it stands there is no federal legal framework explicitly prohibiting online gambling.
Meanwhile, although the Public Gambling Act of 1867 does prohibit public gaming establishments, three Indian states, Goa, Daman, and Sikkim, do allow casinos while also permitting online gaming.
Betting on horse racing is also widespread, but only at racecourses or via the tote, and various regional and city police forces routinely clamp down on betting rings, particularly around the hugely popular sport of cricket.
Despite this, the Indian Premier League (IPL) in particular is a big betting business in India, and the league’s appeal to overseas bettors has also fuelled a lot of B2B activity around it.
While this would not be impacted by any state or federal regulations in India it does indicate the widespread popularity and betting value of the sport – value which has likely been noted by the Karnataka government, which will stand to reap hefty tax rewards from a legal betting market.
At the federal level, however, gambling remains a cause of concern in some respects. A recent concern aired by policymakers is offshore gambling advertising targeting Indian consumers.
