Rolling the Digital Dice- Emergence
In the past decade, India has witnessed a widespread growth and dramatic surge in its online gaming industry, especially in the form of app based “Online Betting”. By 2023 India had 568 million gamers and 9.5 billion app downloads making it the world’s largest gaming market. The market is projected to reach USD 8.6 billion by 2028 and is currently valued at USD 2.2 billion in 2023.  The progress of this sector has been fueled by the increase in the use of smartphones, cheap data plans, and a furthering interest in the domestic and international sports, but this is often seen in a legally grey zone. But despite this conundrum, the industry is booming as there are no stringent laws and a cohesive framework to regulate this unfettered area, both at the central and state level. There is a continuing dilemma, as some states have completely banned online betting while others are allowing it under “Game of Skill” provided there is a license for it. Further, in absence of laws some technological measures are already in place such as Geo-blocking and app-level restrictions. But these measures are still at their infancy stage, leading to being sporadic and under enforced. This essay delves into both the aspects of Online gambling in India.

Playing on Thin Ice- Regulation
The Online gambling regulation in the country originates from the colonial statue, “The Public Gambling Act of 1867” but as this act is an age-old legislation it makes no mention about digital or online forms of gambling but restricts operation of the gambling houses. This Act introduced a distinction between game of ‘skill’ as against those of ‘chance’. The Skill variety was treated as tantamount to gambling and a consequent provision was made to punish those indulging in these ventures. In today’s context, it has become a legal antique attempting to police a digital revolution. The federal structure of India is such that the states have power under the Entry 34 of their respective State List, to legislate on these gambling and betting. Resultingly, leading to a wide number of legislations across the different states. States like Meghalaya, Nagaland and Sikkim have introduced legislations on online gaming, with restrictions. Whereas, many states have blanket bans on gambling activities and online betting-Telangana being the first one in 2017, followed by Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Although these blanket bans were imposed but with time there were interventions and challenges to these acts. The judiciary took up a proactive role by protecting the interest of the players, The Karnataka HC became the third court (following the Kerala High Court and the Madras High Court) to hold that the prohibition on playing and betting on online games of skill was unconstitutional. As previously there, the state government of Tamil Nadu brought legislations that absolutely banned the online gambling, later when it was challenged in the case of Junglee Games v. State of Tamil Nadu, the Madras High Court quashed the Tamil Nadu Gaming and Police Laws (Amendment) Act, terming the blanket ban “excessive and disproportionate.” The court again affirmed the position that rummy and poker were games of skill and could not be banned by a one-size-fits-all approach. But what adds to the puzzle now is the interpretation of law by the judiciary on what makes a game of “skill” and not a game of “chance”. The Supreme Court interpreted it in RMD Chamarbaugwala v. Union of India, where it held that a contest where success isn’t due to any large extent to the exercise of skill is to be considered gambling in nature. But in a latest judgment, Varun Gumber v. Union Territory of Chandigarh, the Punjab and Haryana High Court validated the fantasy sports format of Dream11 as being skill-based, exempting it from the ambit of gambling laws. The Supreme Court also reaffirmed the same, by affirming the order passed by Rajasthan High Court, where the legality of online fantasy sports format as operated by Dream11 as a ‘Game of Skill’ was upheld. However, this judicial rationale does not get transmitted to legacy sports betting apps, which are more likely to be found to be games of chance eventually catching into the purview of criminal prohibition in most states.

A Legal Mirage- India’s Framework
There is a rapid emergence of a term ‘Grey Zone’ of online betting, it is popularly used to highlight the space where legality is not clearly defined, leading to a exploitation by the private entities, both domestically and offshore. The bans imposed by the states are applicable to physical entities present in their jurisdiction, but it is a well-known fact that digital betting apps can transcend these state boundaries, operating from a foreign jurisdiction with servers located abroad and payment intermediaries being fintech companies located internationally. So, a user in Tamil Nadu, where online gambling is banned, could still access and wager money through an app hosted in Cyprus or Curaçao, where such activity is legal and even licensed. The situation is further exacerbated by the non-existence of a comprehensive national framework for digital gambling, unlike in sectors like digital payments or data privacy, which now have overarching regulations. The IT Act (Information Technology), 2000 offers no specific guidance as to gambling related content or apps, hence creating a legal loophole that leaves enforcement agencies ill-equipped and often dependent on ad hoc judicial or executive interventions. The next logical question is: ‘How can technology be used to shrink this grey zone and enforce state-level restrictions in a borderless digital landscape?’ This brings us to geo-blocking, one of the most debated tools in India’s emerging digital enforcement toolkit. This refers to the use of digital tools that restrict access to content based on the location of the user. This works by mapping the IP address of a device, platforms or regulators which can detect where a user is located and then allow or deny access accordingly. Many countries like the United States and Canada  have already deployed this mechanism in the regulation of online betting. For instance, in the U.S., geo-fencing software ensures that a user can only place a sports bet in a state where such betting is legally permitted and if a user tries or attempts to log in from a banned jurisdiction, the site or app simply won’t work. India has also stepped into this, although at a very nascent stage. Under the anti-gambling law; Tamil Nadu government issued a notification to certain fantasy and betting platforms, requiring them to geo-block users located within the state. While this directive was met with a little compliance, it indicated a shift in enforcement thinking from policing the physical presence to controlling the access virtually. State can also deploy the State firewalls at the Internet Service Provider (ISP) level to block certain apps or URLs, as has been done by Indian regulators to ban Chinese apps or restrict adult content. But geo blocking is not a silver bullet, every state has those tech savvy residents who can circumvent this system, one of the ways is using VPNs (Virtual Private Networks), which disguise a user’s actual IP address. Moreover, there is a lack of coordination among the central agencies like the Ministry of Electronics and Information Technology (MeitY), state police, and telecom regulators. Furthermore, no clear legislative mandates or guidelines for enforcing geo-blocking in relation to gambling, further adds to the already subsiding difficulties unlike in other domains such as digital taxation or data localization. But still potential of geo blocking as a regulatory mechanism cannot be undermined.

One Nation, Many Bets- Unified Regulation
There are certain regulatory and compliance gaps which need to be covered in order to achieve proper implementation, the first one being absence of a central legal framework to govern online gambling and betting. The Act of 1867, as discussed earlier, is unequipped to handle modern digital platforms. The recent legal efforts like the IT Act, 2000, and the Digital India programme have also stayed silent on online betting, failing to even define the term or suggest a regulatory approach. There is a lack of centre state coordination, and the inclusion of this subject under the state list, licensing by one state and criminalising by others furthers this dilemma. This calls for a Centralized law, establishing a central nodal authority which can provide an oversight to these activities. The move should be from passive prohibition to active regulation. This does not mean promoting gambling; rather, it means creating system that protects consumers and prevents illicit trade. AI can be used to detect and point out the unlawful patterns, this is could work in collaboration with MeitY (Ministry of Electronics and Information Technology). Digital literacy can be a part of campaign similar to that run by SEBI (Securities and Exchange Board of India). Further, celebrities and the influencers promoting this should be rather engaged by the government to spread public awareness.

Closing The Loop- Road Ahead
Hence, to bridge the divide from a non-regulatory market to a uniform and centralized market significant steps should be taken by the authorities. IT Rules, 2021 and the subsequent IT Amendment Rules, 2023 lays down specific onus on online game intermediaries, other intermediaries, social media intermediaries or platforms with regard to online games. Furthermore, such intermediaries are needed not to host, store or publish any information in contravention of any law for the time being in force. The Law Commission of India’s 276th Report (2018) provides a pivotal perspective. While acknowledging the desirability of a complete ban on gambling and betting, the Commission conceded that such prohibitions are difficult to enforce effectively. Consequently, it recommended that if a ban is not feasible, regulation becomes the only viable option. A coherent roadmap is therefore necessary to include Central Model Law to harmonize definitions and licensing, a Nodal agency to encourage tech‑based enforcement, public education on safe and sound gaming practices, and cooperation with states to block operators and ensure compliance. Summing up, these measures can bridge India’s legal technical divide and the grey zone, resultingly transforming a fractured regulatory landscape into a unified, enforceable, and responsible framework for managing online betting.