The choice between regulating gambling or creating an outright ban in India has been a hotly debated topic in recent years. There are strong arguments on both sides. One of the most contentious is around the question of problem gambling.
At present, the lack of regulation means there are no safeguards in place to protect players. There are very few barriers to creating an online gaming account. All a player needs to sign up is a smartphone and a stable internet connection.
Many gaming apps available to Indian players do not require any proof that customers are who they say they are. That includes age verification, allowing even children to have access to real money betting, making it much too easy for underage players to potentially develop a gambling addiction.
While it may seem counterintuitive, most research suggests that the best way to protect those vulnerable to gambling addiction is to regulate the market as opposed to attempting to ban it. Most attempts at banning gambling have created a dangerous black market. Regulation in the gambling market protects players via enforced responsible gaming and AML policies.
How gambling regulation has proved to be beneficial in the rest of the world
One of the ways that other countries have dealt with the matter of gambling addiction is by legally implementing a way to ensure that any player who feels uncomfortable with their gambling patterns can officially self-exclude from any gambling platform.
In Sweden, SpelPaus (Game Stop) is a special self-exclusion program that all operators must join in order to claim a gambling license in the country. Under this requirement players who voluntarily choose to stop their access to games and marketing communications, at any licensed site in Sweden, will no longer be able to access any other online casino with real money until their period of self-exclusion ends.
Other countries have taken similarly proactive strategies. In the Netherlands, they have chosen an approach where only gambling companies that can meet the most stringent guidelines are granted a license. Making it easier for the government to penalize companies that don’t comply.
In the United Kingdom, there is a strong emphasis on responsible gambling and truthful advertising. During Covid, they were able to implement new restrictions to protect players. The Advertising Standard Authority (ASA) of the UK warned the gambling industry that it would be under added scrutiny during the lockdown period. This included not referring to the crisis or suggesting that gambling could alleviate boredom or solve financial problems.
The idea of gambling becoming problematic can start in childhood. Even with non-monetary stakes. Some countries have chosen to implement rules on gaming. China announced a rule on players under 18, placing a limit to only three hours of gameplay a week.
The way forward for gambling regulation in India
For India, the Swedish Game Stop idea is a great option. The ID system created in the country can assist in age verification (via the BankID system), the management of problem gambling, and the avoidance of online abuse. It’s already proved successful, with many Swedish players signing up.
A player who signs up to a gambling site using an Aadhar Card to play a casino would be automatically flagged for problematic gambling, based on a player’s previous choice to self-exclude.
Under this system licensed operators would be required to protect players using Artificial Intelligence (AI). Machine learning could be used to flag players who exhibit problematic gambling patterns.
Other safeguards should include allowing customers to set their own time and financial limits, providing information on responsible gaming, and better access to customer service.