By V Ramakanth
“Nobody talks to me. I have a 96 lakhs debt on me. My mother is a teacher. She doesn’t talk to me. If something happens to me on the road, they will not even come and see me. None of my family members talk to me. I was qualified for JEE mains. I lost my entire B. Tech tuition fees on betting,” cries Himanshu Mishra.
Himanshu is a painful story of losing 96 lakhs due to online gaming addiction. Himanshu narrates his painful experience on betting apps to journalist Prateek Trivedi on his show “BhaiyajiKahin” program on News18 India news channel.
On the show, Himanshu Mishra recounted how celebrity endorsements influence the youth to bet. Majority of these endorsements by cricketers and film personalities on social media increase temptations among youth and draw them to betting. Influenced by their Cricket/Screen heroes, youngsters download betting applications on their mobile phones and place bets during major sporting events, video game competitions, tournaments and other popular trending activities.
Himanshu Mishra is not just an isolated case. There are tens and thousands of youngsters being caught in the damaging effects of gaming apps. These applications often provide easy access to create an account, allowing even minors to participate in betting without proper control in place. Many of them do not even have robust verification processes, making the youth vulnerable to accessing gambling features.
In March 2024, prohibiting betting and gambling, the Ministry of Consumer Affairs, and the Central Consumer Protection Authority issued an advisory on the prohibition of advertising, promotion, and endorsement of illegal activities and the stringent actions proposed. Orders were issued in accordance with the provisions of the Consumer Protection Act of 2019, and Public Gambling Act, 1867, which strictly prohibit betting and gambling.
In spite of these actions, online betting platforms and applications persist in advertising, blatantly promoting betting and gambling. They advocate directly under the guise of gaming, resulting in the continuation of online gambling among youth. Eventually, incurring huge losses, and debts, and some even commit suicide.
When the consequences are grave, why is the government collecting General Sales Tax (GST) on online betting applications? Online betting and gambling primarily fall under state subjects as per the Seventh Schedule of the Constitution. It means that the regulation and legality of betting and gambling come under the jurisdiction of individual states. The central government does not have certain regulatory powers, especially when it comes to foreign companies operating in India.
The gaming companies have even approached the Apex Court, contesting retrospective GST notices seeking payments on their profits, calculated at 28 percent. The Supreme Court currently grapples with a cluster of 30 petitions from online real money gaming firms.
On 6 April 2023, the Ministry of Electronics and Information Technology (MeitY), introduced amendments to the IT Rules to regulate online gaming, ‘online gaming intermediaries’, the verification of real money games and the establishment of grievance redressal mechanisms.
Online gaming intermediaries play a crucial role in facilitating gaming activities on digital platforms. These intermediaries are tasked with “conducting due diligence to ensure compliance with permissible online games and ethical standards.” They are required to establish mechanisms for user authentication and age verification to prevent minors from accessing inappropriate content or engaging in gambling activities. Users are required to be informed of rules, privacy policies and deposit protection measures.
While this is so, several states have their own regulations and guidelines. Goa and Sikkim have legalised and regulated casinos and certain forms of online gaming. Flipside, Nagaland has legalised online skill-based games. Tamil Nadu, Andhra Pradesh, Telangana and Karnataka have enacted laws prohibiting online gambling, citing all the issues discussed above.
Maharashtra and other states have restrictive laws based on the Public Gambling Act but have not made any laws regulating online gambling.
In other words, there is no uniform law across the country to contain online applications. The question is how does one differentiate the distinction between skill-based and chance-based games? This is a major worry for everyone and is often debated in court.
This highlights the urgent need for awareness and support. A Research paper on Online Gambling Addiction: A Study among College Students of Kerala State, India by Pranav Prakash, Surbhi Girdhar and Antony Jose on reasons why college students prone to online gambling concludes, “…82% of the respondents enter the gambling apps through links shared on social media platforms. So, the chances of being involved in the games are greater. Indeed, awareness of Online Gaming laws and regulations, financial fraud involved in the games, and the possibility of victimhood are very low.”
This leaves us with a pertinent question, why states do not have the legal authority to block such applications originating from foreign soil?
As per the constitution of India and its provisions, the power to block or regulate access to foreign websites and platforms lies primarily with the central government. Section 69A of the IT Act 2000 authorises the Union of India, “by order, direct any agency of the Government or intermediary to block for access by the public or cause to be blocked for access by the public any information generated, transmitted, received, stored or hosted in any computer resource…The intermediary who fails to comply with the direction issued under sub-section (1) shall be punished with imprisonment for a term which may extend to seven years and also be liable to fine.”
It is not that we do not have sufficient laws to contain online gambling and betting. What is needed is a comprehensive approach that involves education, regulation, technological safeguards, and community support. These effective measures must make the students and youth aware of the financial losses and long-term mental health issues.
As long as governments do not take stringent action against illegal or unlicensed online betting platforms, the stories and travails of Himanshu Mishras will multiply. Influencers, celebrities and film personalities must refrain from endorsing such online platforms; governments must immediately stop all advertisements promoting these online platforms. Otherwise, youth continue to fall prey to online betting and gambling.
The author is a senior journalist and former Addl. Director of All India Radio and Doordarshan, Prasar Bharati.