A Bleak Reality: Rising Losses and Growing Debt in Online Gambling

CA Ruby Bansal , Last updated: 18 October 2024  
  Share


The rise of online gambling in India has created numerous opportunities, but it has also led to a troubling trend: increasing losses and growing debt. With countless gaming apps and the promise of fortune just a tap away, many vulnerable individuals find themselves drawn into the world of betting, hoping to secure a brighter future, often at the expense of their well-being.

The convenience of gambling from home, coupled with the constant allure of winning, often traps individuals in a cycle of spending more than they can afford. To mitigate losses, some players try to claim new no deposit bonuses using NoDepositCasino.guide, which provides an opportunity to play without risking personal funds. However, even with such offers, the danger of accumulating debt remains significant if gambling habits go unchecked.

India s Gambling Landscape - Rising Losses and Growing Debt

Celebrity Endorsements 

A growing issue across the country is the widespread endorsement of online gambling platforms by celebrities. Prominent film actors and athletes have lent their star power to betting apps, promoting them on social media. In response to the rise of influencer marketing for illegal gambling, the Central Consumer Protection Authority (CCPA) issued a warning against such celebrity endorsements. This advisory is based on the Consumer Protection Act of 2019 and the Public Gambling Act of 1867, both of which strictly prohibit these activities. The CCPA emphasized that by promoting gambling, influencers create the impression that betting is acceptable, even when it is illegal, making celebrities "equally liable" for these offences.

Recently, the Tamil Nadu Online Gaming Authority (TNOGA) took legal action against several YouTube and Instagram influencers, along with a private company, for promoting online betting. In their videos, these social media personalities, while primarily focusing on food and daily life vlogs, subtly promoted offshore games, rummy, and poker, enticing viewers with the promise of rewards of up to ₹10 lakh per day for deposits as low as $100 to $1000 per hour.

Overlooking The Issue

Despite these measures, online betting platforms continue to advertise and promote gambling, often under the guise of gaming. This has led to ongoing participation among young people, resulting in significant losses, debt, and even cases of suicide. A recent study revealed that only a small percentage of online gamblers have a "comprehensive awareness" of industry regulations, leaving them vulnerable to engaging with unregulated operators.

The study conducted by Ken Research, titled Consumer Behaviour Analysis for the Online Gambling Industry in India, found that over a quarter of online gamblers in the country face serious issues such as identity theft and transaction complications. Similarly, another study, Online Gambling Addiction: A Study among College Students of Kerala State, revealed that 82% of respondents were introduced to gambling apps through social media links, significantly increasing their risk of getting involved.

The findings further show that awareness of online gaming laws, financial fraud, and the risk of victimization is alarmingly low. Without stronger regulations and targeted educational initiatives, more individuals-especially the youth-are likely to fall into the trap of gambling-related debt and addiction.

 

Current Landscape

Currently, there is no unified law across India to regulate online gambling platforms. While the Ministry of Electronics and Information Technology (MeitY) introduced amendments to the IT Rules last year to oversee online gaming, these rules primarily apply to online gaming intermediaries.

These intermediaries are responsible for conducting due diligence to ensure compliance with approved online games and ethical standards. They must implement mechanisms for user authentication and age verification to prevent minors from accessing unsuitable content or participating in gambling activities. Additionally, users need to be informed about game rules, privacy policies, and deposit protection measures.

However, many states have their specific regulations. Goa and Sikkim have legalized and regulated casinos and certain forms of online gaming, while Nagaland permits skill-based online games. On the other hand, states like Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka have passed laws banning online gambling altogether. Maharashtra and several other states follow restrictive measures based on the Public Gambling Act but have yet to establish regulations specifically for online gambling.

Final Thoughts 

 

India has laws aimed at regulating online gambling and betting, but a more effective solution requires a holistic approach that combines education, regulation, technology, and community support. It's crucial to inform young people about the financial risks and mental health issues linked to gambling.

If the government does not enforce stricter measures against illegal and unlicensed betting platforms, the problem will only escalate. Influencers and celebrities must also stop promoting these gambling sites, and advertising for them needs to be banned. Without these actions, more young individuals will be at risk of the dangers of online gambling, leading to serious consequences for them and society.

Join CCI Pro

Published by

CA Ruby Bansal
(Finance Professional)
Category Miscellaneous   Report

  62 Views

Comments


Related Articles


Loading