Article 1: Regulation, not bans, can protect online gamers
Why in news: The Promotion and Regulation of Online Gaming (PROG) Act, 2025 is under debate due to the rise in offshore betting and gambling platforms after the ban on domestic real-money gaming.
Key Details
- Online gaming ban increased offshore gambling instead of reducing betting activities.
- Illegal offshore platforms bypass Indian laws using VPNs, Telegram, proxy servers, and mirror websites.
- Offshore gambling creates risks of cybercrime, fraud, money laundering, and terror financing.
- Countries like the UAE and Sri Lanka prefer strict regulation over complete prohibition.
- The article supports a regulated framework with safeguards and monitoring rather than a blanket ban
Rise in Offshore Gambling
- Users shifted from regulated Indian platforms to illegal offshore websites after the PROG Act.
- Offshore participation increased sharply in Delhi NCR, Tamil Nadu, and Maharashtra.
- In Tamil Nadu, offshore usage rose from 67.8% to 83% after the ban.
- Users access such platforms through VPNs, proxy servers, Telegram, and WhatsApp.
- Offshore sites operate beyond Indian oversight, weakening consumer protection and grievance redressal.
Concerns Associated with Offshore Platforms
- Illegal platforms may facilitate money laundering and terror financing.
- The Centre blocked 8,376 URLs linked to illegal betting and cybercrime activities.
- Media reports continue to highlight suicides and fraud traps linked to online betting.
- Offshore operators frequently create mirror websites after domain blocking.
- Fraud cases involving fake investment schemes and mule bank accounts have emerged in Tamil Nadu.
International Examples
- The United Arab Emirates introduced a licensed and tightly regulated framework in 2023.
- The UAE model includes deposit limits and harm-prevention safeguards.
- Sri Lanka is establishing a centralised Gambling Regulatory Authority by June 2026.
- These countries aim to bring offshore gambling under domestic regulation and oversight.
- Global experience suggests that regulated systems work better than blanket bans.
Need for a Regulated Framework
- Experts argue that the real choice is between regulated accountability and unchecked offshore dominance.
- A regulated ecosystem can generate tax revenue for enforcement and awareness campaigns.
- Strong regulation may provide better consumer safeguards than outright prohibition.
- Coordination between the Centre and States is essential to tackle illegal gambling networks.
- Policymakers are encouraged to test a controlled regulatory model instead of a blanket ban.
Conclusion
Banning online gaming without effective enforcement has unintentionally strengthened offshore illegal operators. A balanced framework with strict regulation, consumer protection, technological monitoring, and coordinated enforcement may be more effective in addressing cybercrime, fraud, and gambling-related harms while ensuring accountability and revenue generation.
Descriptive question:
Q. “A blanket ban on online gaming is less effective than a strong regulatory framework.” Discuss in the context of rising offshore gambling platforms in India. (10 marks, 150 words)