From Mahabharata to Mobile Apps: The Rise of Gambling in India

From Mahabharata to Mobile Apps: The Rise of Gambling in India     

              by Abhay Pandey 

A Story as Old as Time: The Gambling Dilemma in Indian Culture

The story of the Mahabharata, in which the Pandavas lost everything—their wealth, property, kingdom, and even themselves, including their common wife Draupadi—in a game of dice, is well known. This event ultimately led to the great battle of the Mahabharata. This tale is familiar in every household, and the values in our society view gambling as unholy, a destroyer of happiness and a stable life. However, while our society is aware of these values, many choose not to follow them. As a result, advertisements for gambling and fantasy games are everywhere. News headlines about people losing lakhs of rupees and even teenagers taking extreme steps due to gambling losses have sadly become commonplace.

In this blog, I will try to shed some light on the gambling network that is impacting this generation.

From Dice to Digital: Gambling's Journey Through Indian History

If we trace the history of gambling in India, one of the earliest references comes from the Mahabharata, a story most of us know well. This ancient epic describes gambling, its rules, and its consequences, often portraying it as a double-edged sword. Kautilya, in his Arthashastra, outlines how the state should regulate gambling and even discusses potential punishments for those who break the law. Similarly, in the Manusmriti, Manu describes gambling as an activity that erodes truth, honesty, and wealth—a path leading to self-destruction and discord.

As for the games and equipment, Buddhist texts mention dice made from the Vibhitaka tree, reflecting the deep-rooted history of gambling tools. During the Mughal era, cockfights were popular, and as time passed, horse racing also entered the scene as a prominent form of organized gambling. The influence of Indian culture on gambling even reached Europe; early playing cards and other gambling tools found there bore Indian symbols, underscoring the role India played in the global gambling boom. The 15th century marked a peak period for gambling, with legal gambling houses emerging and local ordinances introduced to maintain order.

The arrival of cricket in the 1720s fueled a new wave of betting in India. Cricket quickly became a national passion, with players viewed as deities and the sport regarded almost as a religion. Gambling escalated dramatically, and even the strict British colonial authorities found it challenging to control. In response, they enacted the Public Gambling Act of 1867, which outlined punishments for gambling and the operation of common gaming houses. However, these laws largely remained ineffective, unable to curb people’s attraction to the thrill of betting.

After independence, the subject of gambling was placed under the State List in Schedule 7, with "betting and gambling" as a state matter. While some states adopted the Public Gambling Act of 1867 in its original form, others modified it. Goa, Sikkim, and Daman and Diu went so far as to legalize gambling and betting with certain licensing restrictions, contributing to a regulated yet accessible gambling environment. In the 2000s, technology brought a new digital era, transforming traditional gambling into online fantasy sports and mobile-based games. While these digital platforms offer convenience, they have also introduced new risks, leading to potentially severe consequences on individual lives and society.

The Digital Dice Roll: India’s Growing Online Gambling Landscape

India, with its 800 million internet users, stands as one of the largest markets for online gambling. Online gambling in India encompasses internet-based games of chance, such as casino games (like slots, roulette, and poker), sports betting, lotteries, and especially fantasy sports, which form a substantial portion of the market. As reported by the EY-FICCI "Windows of Opportunity" report, India had over 420 million online gamers as of 2023, with real-money gaming (RMG) increasingly popular, particularly among young adults in smaller cities, or tier-2 and tier-3 areas.

About 25% of Indian gamers currently engage in real-money games, with this number projected to reach 34% by 2028, illustrating an enormous interest relative to the population size. This rapid adoption of online gambling in India highlights both the opportunity for the gaming sector and raises concerns about its broader societal impact. With a large portion of the youth engaging in these activities, questions emerge about the potential social and financial consequences.

The rapid rise in online gambling is influenced by aggressive advertising, often featuring celebrities and athletes, and limited regulatory enforcement across states. Advertising strategies, which often include renowned film actors and sports figures, especially cricketers, amplify the appeal, as young fans are deeply influenced by these public figures. Many of these ads showcase a rags-to-riches narrative, promising instant wealth, which initially draws in users who then attempt to recover losses, leading to addiction. This cycle leaves many individuals financially vulnerable, and these misleading advertisements are a significant cause of growing participation.

Additionally, statistics show that the average Indian gamer spends about 10-12 hours per week on online gaming. Prolonged engagement in fantasy sports or real-money games has raised concerns over mental and psychological well-being, with reports of players feeling socially isolated and developing compulsive behaviors. This rising engagement in RMG and fantasy gaming calls for a closer examination of the long-term impacts on the younger generation and may signal a need for stricter regulations, public awareness, and responsible gambling initiatives to mitigate potential harms.

Understanding Skill and Luck in Fantasy Sports: The Legal Debate

The difference between a game of chance and a game of skill lies at the heart of the legal ambiguities that allow these games to operate within the framework of court rulings. A game of chance is characterized by outcomes determined largely by randomizing elements such as a spinning wheel, rolling dice, or a roulette wheel. In contrast, a game of skill is defined by results that primarily depend on a player’s mental and physical abilities, though an element of chance may still be present. However, the skill component is predominant. Recognized games of skill include chess, poker, Sudoku, quizzes, and rummy. A well-known example is Kaun Banega Crorepati (KBC), where participants rely on knowledge and reasoning rather than pure chance.

In a recent case, a petitioner in the Chandigarh High Court filed a lawsuit against Dream11, a fantasy sports app, after losing ₹50,000. The court’s decision garnered significant media attention. Dream11’s counsel argued that the app falls under the category of fantasy sports, where participants select a sport, choose a match, and then create a team of eleven players from the two teams playing. Points are awarded based on the real-life performance of these players. The counsel maintained that winning requires substantial knowledge of the sport and an understanding of player attributes, with only a minor element of chance involved. The court accepted this view, affirming that the skill element in such fantasy games is predominant. The Supreme Court, in a separate case, also recognized fantasy sports as games of skill.

While these games may be classified as skill-based, the app's algorithm poses an additional layer of complexity. Participants must create a team of eleven players, with only a slim chance that their chosen players will perform exceptionally well on that particular day. Even if individual players perform, there is no guarantee the selected team will score the highest points, ultimately determining the user’s success.

In reality, it resembles a participant predicting, for example, that a chosen player will hit a century or be named man of the match. Although the player may have the potential, circumstances on that day could mean they get out on the first ball. How, then, can this be entirely attributed to skill? At its core, these fantasy games require participants to anticipate player performances—essentially, making educated predictions that are not guaranteed.

Caught in the Middle: Government Policy and the Growth of Online Gambling

The government has been relatively slow to take decisive action against online gambling and fantasy sports platforms for several reasons. First, the Public Gambling Act of 1867 applies only to physical, in-person betting and does not cover online activities, which are complex to regulate under current law. Additionally, gambling legislation falls under the State List in India, giving individual states the authority to create their own rules, which complicates unified action.

Another reason is the legal ambiguity surrounding "games of chance" versus "games of skill," which often requires nuanced judicial interpretation. However, the primary factor holding the government back from stricter regulation is the economic contributions of this industry. The Indian government benefits significantly from the online gambling and fantasy sports sector, particularly through taxation. As of FY 2022, the online gambling market in India is valued at approximately ₹68 billion (around $820 million), with estimates suggesting it could reach ₹253 billion (around $3.1 billion) by FY 2027. 

A major source of revenue for the government comes from the Goods and Services Tax (GST) imposed on these operations, currently set at 28%, allowing the government to capture roughly 25% of total earnings from online gambling. With rising smartphone usage and widespread internet access, this sector's growth is expected to further increase tax revenues in the coming years. Beyond taxation, the online gaming industry has become a catalyst for job creation, employing approximately 100,000 individuals both directly and indirectly. The number of paying gamers in India is projected to increase from 22% of the total gamer population in FY 2022 to 34% by FY 2028.

Fantasy sports, especially cricket, are especially popular, accounting for 85% of user engagement. This growth not only boosts tax revenues but also drives investments in local gaming startups, fostering industry expansion and economic activity. The government’s approach mirrors the ideas of Kautilya, an ancient Indian economist, who argued that gambling should be heavily taxed and tightly regulated. This philosophy suggests that high taxation and strong oversight deter excessive gambling while channeling a substantial portion of profits into the state treasury, striking a balance between economic gain and social responsibility.

 Conclusion 

As the Mahabharata warns, “He who gambles will suffer misery and ruin.” This ancient wisdom resonates today, as we see modern forms of gambling—from online games to fantasy sports—causing financial and emotional harm, especially to young people. To tackle this growing issue, we need a combination of stronger regulations, public awareness, and responsible policies. 

First, the government should close the loopholes in gambling laws, especially in online platforms, to protect vulnerable users. Alongside this, awareness campaigns in schools, colleges, and social media can help young people understand the risks and recognize the cycle of loss these games often create. At the same time, while gambling taxes contribute significantly to the economy, it’s essential not to become overly dependent on this income. A responsible approach would mean channeling this revenue toward support services for addiction, as well as investing in other industries to create sustainable growth.

In the end, as Kautilya wisely said, “A society that gambles forgets responsibility.” Our path forward should be to enjoy games but stay in control, making sure we learn from the past to create a safer future. This way, we can turn the story of gambling in India into one of balance, responsibility, and progress.