In a revealing study conducted by Ken Research, it has been found that more than 25% of online gamblers in India encounter significant challenges, ranging from identity theft to transaction difficulties. This study, titled ‘Consumer Behavior Analysis for Online Gambling Industry in India,’ sheds light on the reliability issues plaguing the online gambling sector in the country.
The study uncovers that a significant portion of the online gambling community in India faces various risks. These include fraud, unauthorized transactions, and issues with withdrawing funds. Such challenges impact consumers’ trust in the industry and raise questions about the security measures in place.
Impact of India’s Diverse Legal Landscape:
One of the key factors contributing to these challenges is India’s varied cultural and legal landscape. The study points out that different states in India have diverse regulations regarding gambling, from complete prohibition to partial regulation. This law inconsistency creates a complex environment for operators and users, leading to uncertainty and potential legal risks.
Lack of Comprehensive Awareness:
The research also highlights that only a tiny fraction of online gamblers in India possess a thorough understanding of industry regulations. This lack of awareness often leads individuals to engage with unregulated operators, increasing the risk of encountering fraudulent activities. The intricate nature of gambling laws and limited exposure to detailed information are the main reasons for this challenge.
Government Actions Against Illegal Operations:
In response to these issues, Indian authorities have taken steps to regulate the online gambling sector. In November, blocking orders were issued against 22 illegal betting apps and websites. A flat 28% turnover tax was imposed on licensed online gambling operators. In January, the government also introduced new rules to regulate the online gambling landscape, aiming to create a safer consumer environment.
Potential for Growth in the Sector:
Despite these challenges, the study identifies significant growth potential in the online gambling market in India. In regions like Delhi, Maharashtra, and Uttar Pradesh, online gambling is prevalent among different age groups. For instance, in Karnataka, a majority of 36 to 44-year-olds are active in online gambling, engaging in the activity for 11 to 20 hours per week.
Widespread Challenges for Gamblers:
The study by Ken Research offers a comprehensive analysis of the online gambling industry in India, highlighting the pressing need for improved regulation and consumer awareness. While considerable challenges exist, the sector’s growth potential remains substantial. As the government continues to refine its approach to regulating online gambling, there is hope for a more secure and trusted environment for gamblers in India.