Accelerated by the COVID-19 lockdowns that affected the country in 2020, the gambling industry in India has experienced significant growth over the last decade. Almost 40% of this growth was experienced in 2020, with the sector expected to further grow by 8.59% annually until 2027.

Gambling has been a popular activity among Indian residents even in ancient times, but the advancement of online gambling options has allowed it to boom at an unprecedented rate. This boom peaked in 2021, when almost 40% of all residents with access to the internet gambled using online casinos or bookmakers.

However, the rapid expansion of gambling in a country with long-standing socio-economic issues has resulted in multiple challenges that the government and citizens are left trying to manage.

Socio-economic climate

Overtaking China in 2022, India is the most populated country on the planet. As of 2024, the country has over 1.43 billion residents and significant revenue, with a GDP of $3.57 trillion (approximately £2.8 trillion). However, this money doesn’t filter through to all levels of society, with a 2017 report finding that the richest 10% own almost 80% of the country’s wealth.

A 2022 study by the World Bank revealed that almost 138 million people in the country live below the national poverty line, which in 2024 is £12.11 (urban) and £9.97 (rural). This is the minimum monthly earnings a person requires to attend to their basic needs, such as food, clothing, and shelter. The number of people living below the poverty line has reduced significantly in 2024 but still remains prevalent.

The immense poverty experienced by millions in the region has become a breeding ground for gambling. With little to survive on, residents are lured into the promise of quick riches and financial freedom that gambling often promotes.

This has led to higher levels of impoverishment as players use the little money they have to try their luck. In many cases, players will also rely on loans and other forms of debt to try and win large amounts, leading to further financial strain.

A 2021 study conducted by the All India Gaming Federation revealed that 65% of online gamblers were from low-income homes. The same study showed that 40% of gamblers admitted to facing more strenuous financial difficulties because of the wagers they place.

Personal impacts

Alongside the economic impact on the population, residents have suffered other challenges ranging from gambling addictions to depression and various other mental health factors.

Studies estimate that almost 7.4% of Indian players have a problem with gambling. Of these, between 0.6% and 1% show signs of addiction. A subsequent study conducted in 2023 by the National Institute of Mental Health and Neurosciences revealed that players suffering from gambling addictions are at a high risk of having associated mental health problems.

These problems include depression caused by the inability to win back losses, anxiety over the state of personal finances and the impact of gambling on available funds, and (in severe cases) suicidal thoughts.

While these issues are localised to specific players experiencing them, they also have an adverse effect on the larger social environment. These effects are seen in the breakdown of families due to addiction and, more specifically, in the crime rate of the country.

Desperation caused by excessive gambling is known internationally to lead some players to crime. In India, robberies and theft have increased in recent years and are attributed to the worsening financial position of much of the population. The prevalence of gambling-related losses has exacerbated this.

End of a boom

With the above issues highlighted in recent years amid the growth of the gambling industry, the gambling boom India has experienced has come to an abrupt halt. This sudden stunt is due to various factors that have significantly slowed the industry’s growth.

Government intervention

One of the most significant restraints to the sector’s growth has been intervention from the government. Spurred on by the social impacts and concern surrounding online gambling, many states have taken steps to limit gambling.

Andhra Pradesh, Tamil Nadu, and Telangana have all issued new regulations banning online gambling within their respective borders. These bans have been accompanied by severe punishments, such as a Rs 5,000 (£47) fine and a six-month prison sentence for violators in Tamil Nadu, for anyone caught using online services.

The federal government has also taken steps to discourage the industry. Among these are stricter regulations that operators must adhere to. One of the most detrimental of these regulations is a 28% tax on all revenue instituted since mid-2023.

Operator wariness

As the impacts of gambling have become more apparent among residents due to the government’s crackdown on the industry, operators have found it more difficult to attract players. This is despite many sites boasting no download or no registration required to gamble.

Due to this and further regulation passed in 2023 that requires all offshore operators active in the region to register with the local government, many online sites and apps have stopped supporting local players. Between the start of October and the middle of December 2023, no registrations were lodged, showing that interest in the market had dwindled significantly.

Operators’ wariness about registering and beginning to support residents is compounded by the central government blocking over 170 gambling applications in 2023. The Ministry of Electronics and Technology listed these as illegal apps. Banned apps include prominent names in the industry, such as 1XBET and Parimatch.

Conclusion

Despite estimates still predicting growth in the industry over the coming years, there is no doubt that the wildfire the gambling industry was experiencing has been quenched. With stricter regulations and a more aware community that has begun to understand the negatives of the pastime, operators are finding the Indian environment more challenging than ever to exist in.

As further studies reveal unfavourable statistics and citizens become even more cognizant of the consequences of gambling, this outlook could easily change. If it does, the gambling industry in India may face the harsh reality of a permanent decline, leading to even more operators calling it quits with local players.