A balanced, collaborative approach between the government and the online gaming industry is essential for responsible and sustainable growth
The online gaming industry in India is experiencing rapid growth but is often misinterpreted as being synonymous with gambling. This misconception fuels concerns about problem gambling and social harm, leading to a negative narrative surrounding the sector. In reality, much of the harm stems from illegal offshore betting and gambling platforms, which further exacerbate this misrepresentation.
Every industry influences society in various ways, and it is the responsibility of regulatory frameworks to strike a balance— supporting legitimate enterprises while effectively curbing illegal activities.Conflating online gaming with gambling risks undermining an industry that is growing at a Compound Annual Growth Rate (CAGR) of 15.68 per cent on a base of USD 3.49 billion. This sector contributes significantly to job creation and tax revenues in India. With 83 per cent of the world’s gamers, India boasts 568 million users and registered over 9.5 billion gaming app downloads in 2023. Real Money Games alone contributed 60 per cent of their revenues to the Indian exchequer in FY 2023-24. Misunderstanding the online gaming industry as gambling could jeopardize its potential for economic growth and its contributions to national development.
Regulators must prioritise cracking down on offshore and illegal businesses and apps that operate in violation of Indian law. Measures such as whitelisting legitimate platforms, and initiating legal actions against those facilitating illegal activities are crucial. Steps like freezing the bank accounts of operators and intermediaries, and working with financial institutions to block transactions tied to illegal gambling, are urgently needed. Practical enforcement challenges cannot be an excuse for inaction, as the risks are significant. A coordinated effort involving the Ministry of Finance, Information Technology, Home Affairs, and Consumer Affairs is essential, with each department playing a critical role in enforcement and raising public awareness about the legal implications of supporting illegal operations.
Without robust enforcement and heightened awareness, illegal gambling platforms will not only make Indian citizens vulnerable to gambling addiction but also siphon their hard-earned money into criminal networks. The profits from illegal gambling often fund organised crime, money laundering, and terrorism, with global examples linking gambling profits to drug trafficking and terrorist financing. This not only destabilises local economies but poses a serious threat to national security. As the government takes strict action against illegal gambling, it must also work closely with the legitimate gaming industry to differentiate between legal online gaming and illegal gambling. Such a partnership would not only help clear the negative perceptions but also support the industry’s growth. This collaboration could further enhance the crackdown on illegal gambling through combined awareness campaigns and enforcement efforts.Finally, the government and the gaming industry must work together to develop a responsible gaming framework.
This should include self-exclusion tools, age verification systems, game time monitoring, and partnerships with mental health experts. By promoting responsible gaming, the industry can ensure ethical practices, protect consumers from addiction, and foster a sustainable, well-regulated gaming ecosystem in India. A balanced approach that differentiates legitimate online gaming from illegal gambling, alongside stronger enforcement measures, is vital for the sustainable growth of online gaming industry. With govt and industry collaboration, responsible gaming practices can be promoted, ensuring the sector’s positive contributions to economic growth and job creation.
(The writer is a partner at AP & Partners; views are personal)
