India is reportedly considering introducing a new federal online gambling law to regulate the sector.

The Ministry of Home Affairs (MHA) has begun exploring the need for a new online gaming law, according to anonymous officials quoted in local media.

The matter was recently discussed in at a meeting in the Home Ministry attended by leading officials from various agencies including India’s internal security and intelligence agency.

It follows the Ministry of Electronics and Information Technology introducing a self-regulatory mechanism for the skill-based gaming sector in 2023.

However, this self-regulatory approach, which involves farming out oversight to non-governmental bodies, has faced criticism that it leaves significant regulatory gaps.

An official told News18: “It has been decided that MHA’s Indian Cyber Crime Coordination Centre (I4C) will prepare a report based on the discussions regarding the need for a new law to regulate online gaming, gambling, betting, and lotteries.

“Since these activities are expanding rapidly, a decision will be made once the report is submitted.”

Several operators reportedly under investigation in India

Failures of the current system have led to several big businesses being put under investigation by central agencies for ripping off Indians, according to the newspaper’s sources.

Also in the firing line will be celebrities promoting illegal gambling activities not authorised by India’s skill-based gaming laws.

These date back to India’s 1867 Public Gaming Law, which completely bans the offering of games of luck.

While the definition has shifted over time and often differs between Indian states, skill-based games often include Poker, Rummy, Teenpatti or Chess.

The government shared concerns that offshore gambling platforms are conning players out of winnings by manipulating gaming outcomes.

While the exact shape of the new law remains unclear, if legislators opted to regulate sports betting and iGaming, India would likely become one of the largest markets in the world.

In particular, Cricket betting has long been highlighted as a vertical which could see significant growth.

India’s nascent skill-based gaming sector has enjoyed some success in recent years, although its continued expansion has struggled in the face of a 28% Goods & Services Tax.

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