A patchwork of 19th-century legislation is struggling to keep pace with a smartphone-driven betting market that has reshaped how millions of Indians engage with cricket, football and casino-style games. The gap between technology and regulation has created fertile ground for offshore bookmakers, leaving consumers with limited protection and state governments with little tax revenue from an activity that continues regardless of its legal status.
A Legal Structure Built for a Different Era
The Public Gambling Act of 1867 remains the primary federal reference point for gambling in India, yet it was drafted long before the internet, let alone mobile betting apps. The law does not address online wagering directly, and because gambling is a state subject under India's constitution, each state has been left to interpret and legislate independently. Goa and Sikkim permit certain forms of regulated gambling, including casinos and, in Sikkim's case, online betting. Most other states either prohibit betting outright or simply have no clear statute covering digital platforms. This inconsistency means a bettor's legal exposure can change depending on which state they are logging in from, even though the app on their phone looks identical nationwide.
Why Offshore Operators Dominate the Market
Into this regulatory vacuum have stepped international bookmakers, many licensed in jurisdictions such as Malta, Curaçao or the UK, who market directly to Indian users without being bound by Indian consumer protection rules. Platforms popular among Indian bettors have localized their offerings - adding cricket-specific markets around the Indian Premier League, supporting UPI and other domestic payment rails, and running promotional campaigns tailored to the market. Because these operators sit outside Indian jurisdiction, enforcement is difficult, disputes over withheld winnings or account closures often have no practical remedy, and there is no guarantee that player funds are segregated or protected in the way a domestically licensed operator might be required to maintain.
Cricket as the Engine of Growth
Cricket's cultural dominance, especially through the IPL, has made it the central product around which India's betting economy revolves. The tournament's packed scheduling, with multiple matches most days during the season, multiplies the number of betting markets available at any given time, from match outcomes to individual player performances. This volume is a major reason why unregulated betting activity around the IPL is believed to be substantial, even though reliable figures are hard to verify given the informal nature of much of the activity. Football leagues from Europe and emerging interest in kabaddi, basketball and tennis are expanding the market further, but cricket remains the anchor product for nearly every operator targeting Indian users.
The Case for Regulation - and Its Risks
Policymakers and industry figures have periodically floated the idea of a national regulatory framework, pointing to Sikkim's licensed model as a template. The argument is straightforward: a regulated system could enforce age verification, require responsible gambling tools, tax operators, and give consumers legal recourse that offshore platforms cannot offer. Absent that framework, the current situation effectively outsources consumer protection to companies with no accountability to Indian authorities.
Any move toward legalization would need to address real risks. Easier access to betting, particularly through mobile apps that operate continuously, raises the likelihood of problem gambling, especially among younger users who make up a large share of the current player base. Responsible gambling measures - deposit limits, self-exclusion tools, clear disclosure of odds and risk - are not optional extras in mature betting markets; they are standard features regulators typically require as a condition of licensing. Their near-total absence from India's current grey-market environment is one of the strongest arguments for formal oversight, rather than a reason to avoid it.
What Comes Next
The trajectory suggests continued growth regardless of regulatory clarity, driven by smartphone penetration, digital payments infrastructure and sustained interest in cricket. Whether that growth happens inside a regulated, taxed, consumer-protected system or continues within the current grey market depends largely on political will at both the state and federal level. For now, Indian bettors operate in a system where enforcement is inconsistent, consumer safeguards are minimal, and the line between legal and illegal activity shifts depending on geography - a situation that serves neither the government's fiscal interests nor the public's financial safety.