Why Gambling Is Rising So Fast in India (2025) – Complete GamblingHood Insight

Why Gambling Is Surging So Fast in India

Gambling and betting—once largely limited to localized, in-person markets—have seen explosive growth in India recently, particularly in the online realm. This surge is driven by a confluence of technological, legal, economic, and cultural factors. Below, we examine the dynamics in detail, using recent data and referencing sources such as GamblingHood as well as various Indian reports.

What is “GamblingHood”

Before diving in, it’s useful to clarify what GamblingHood is. According to its site, GamblingHood, or GamblingHood.info, describes itself as a platform that provides awareness about casino rules, shares player stories (including losses), and offers tips for responsible gaming. It is not itself a gambling operator, but rather an informational and awareness-oriented site. It provides insight into the risks, losses, and strategies, which makes it a useful reference when discussing both trends and harms.

Scale of Gambling / Betting Growth in India: Recent Data

Here are some of the key statistics and data points that show how fast gambling is rising in India:

• A report by Digital India Foundation notes that 1.6 billion visits were logged in just three months on four major illegal online gambling/betting sites in India.

• Illegal betting is expected to grow by ~30% annually in the coming years, driven by selective bans, high taxation on legal platforms, and weak enforcement.

• According to India Today / IEIC / WinZO etc., India’s gaming market was valued at US$3.7 billion (≈ ₹31,500 crore) in 2024 and projected to reach US$9.1 billion (≈ ₹78,000 crore) by 2029, with a CAGR of ~19.6%. Much of this is driven by Real Money Gaming (RMG) which contributes ~86% of revenue.

• The online sports betting market alone is estimated at US$2.19 billion in 2025.

• A survey found 65% of Indians believe fantasy sports / rummy / poker are akin to gambling (or include gambling-like chance/risks).

• The psychiatric literature notes that India has an estimated 12.17 million online gambling users, with annual growth in illegal gambling market size (various estimates) in the tens of billions of dollars.

These numbers illustrate that growth is not marginal—it’s rapid and, for the most part, driven by digital channels and real-money gaming or betting platforms.

Key Drivers of the Surge

Why is gambling rising so fast? Multiple overlapping factors are at work. Below are the main ones:

1. Digital Penetration, Smartphones, Internet Access

   • Mobile phones have become cheaper and more capable. High-speed internet (4G, increasingly 5G) is now accessible in many rural and semi‐urban areas.

   • Even modest smartphones can run apps, and for many, mobile data is affordable. This has opened up gambling / betting apps to people previously excluded.

2. Ease of Payments / Fintech

   • Digital payment infrastructure (UPI, mobile wallets, net banking) allows seamless deposits and withdrawals.

   • Sometimes regulatory oversight of payments is weak, or controls are circumvented.

3. Desire for Quick Gains / Aspirational Behavior

   • Gambling is often marketed (explicitly or implicitly) as a route to “easy money.” In societies with income inequality, aspirational marketing can lure people.

   • The culture of fantasy sports and tournaments (e.g., cricket) gives an entry point: many see fantasy leagues, rummy, etc. as skill-based rather than pure chance, which reduces moral resistance.

4. Aggressive Marketing, Sponsorships, Influencers

   • Ads (TV, digital, social media) heavily promote gambling apps or fantasy gaming platforms.

   • Celebrities and influencers endorsing such apps increase trust and visibility.

   • Sometimes the marketing is not clearly labelled, or there is ambiguity about legality or risk.

5. Legal Ambiguity: Skill vs. Chance

   • India has older laws (e.g., the Public Gambling Act of 1867) that distinguish between games of skill (more legal) and games of chance (more restricted) but these are often vague. Courts have tried to clarify (“preponderance test” etc.) but there is confusion.

   • Fantasy sports, rummy, poker etc. often claim to be games of skill. Many users perceive them to be so, even if risk is present. This legal / perception ambiguity reduces the perceived barrier.

6. Inadequate Regulatory Oversight / Enforcement

   • Laws are outdated; many bans exist only on paper or in specific states. Enforcement is patchy.

   • Illegal operators use mirror websites, offshore hosting, social media, and other digital workarounds.

   • High taxation of legal platforms (e.g. 28% tax on legitimate deposits / GST burdens) make legal operations less competitive vs illegal ones.

7. Regulatory Reaction Lag / Selective Bans

   • Governments are beginning to respond, but often reactively, and regulation tends to be patchy (by state) rather than uniform. This lag gives a window for growth.

   • As legal platforms face restrictions, illegal ones often expand to fill the gap.

8. Psychological and Social Factors

   • Gambling appeals to risk taking, thrill seeking.

   • Social proof: when friends / peers / social media show wins, it encourages others to try.

   • Losses often reinforce continuation (trying to recover losses).

   • Younger demographic with less financial literacy are especially susceptible.

9. Economic Pressures

   • Rising inflation, cost of living, unemployment or underemployment can push people to seek alternative income sources, however risky.

   • The idea of “what if I win big” can be alluring when stable incomes are difficult for many.

10. Cultural Factors

    • India has a long tradition of informal gambling in various forms (matka, satta, betting on sports, rummy among family / friends). Digitisation is just a newer medium.

    • Social acceptability in certain circles for fantasy sports etc.

The Role of “GamblingHood” in the Discourse / Awareness

Although not an operator, GamblingHood plays a role in the ecosystem by:

• Informing users about casino rules, strategies, tips, and loss stories. This raises awareness of risks, which can help in promoting responsible behaviour.

• Offering insights into responsible gaming practices. That is important because many users are unaware of how addictive gambling can be, how odds work, or how losses mount.

• Highlighting real experiences (including losses) helps counterbalance sometimes misleading marketing that emphasizes wins.

Thus, platforms like GamblingHood contribute to public education and can be pivotal in pushing for more transparency, regulation, and protections for gamblers.

Impacts & Harms

With growth comes harm. Here are some of the key negative consequences:

• Financial loss for individuals; sometimes leading to debt, selling assets, borrowing money, using funds meant for essentials.

• Addiction and mental health issues: anxiety, depression, suicidal ideation. Evidence shows rising distress calls helplines, especially during sports seasons.

• Fraud, money laundering, cyber risk: Illegal betting platforms are often poorly regulated, some may be traps, may misuse user data, delay or refuse withdrawal.

• Social harm and inequality: poorer people disproportionately affected. Losses that may seem small are large relative to their income. Stigma, broken relationships.

• Strain on regulatory / legal systems, as states try to balance revenue, public health, morality, citizens’ rights.

Regulatory & Legal Responses So Far in India

To understand why gambling is rising so fast, part of the story is what hasn’t (yet) been done, or was done partially. Below is a summary of regulatory / legal status and recent developments:

• The Public Gambling Act of 1867 is the central law, but it was enacted well before the Internet, so many forms of online gambling don't clearly fall within its definitions. Courts have for many years used the skill vs. chance distinction to decide what is legal.

• Some states have their own laws and bans (e.g. Tamil Nadu, Andhra Pradesh, Telangana). Enforcement and bans vary.

• There has been implementation of high tax (28% GST / tax on deposits) for legitimate gaming platforms. This has pushed some users/providers towards illegal offerings.

• Government has considered or is preparing new legislation. For example, reports mention that the Indian Cyber Crime Coordination Centre (I4C) is working on proposals for a central law to cover online gaming / gambling entirely.

• The legal challenge: some platforms have contested bans (for example, claiming that their games are lawful “games of skill”).

Why the Growth Is So Fast (Putting It All Together)

Synthesizing the above, the reasons gambling is rising especially fast in India include:

• Massive digital infrastructure rollout that lowers access costs dramatically.

• Aggressive marketing and normalization of gambling / fantasy sports, often under the guise of gaming / entertainment.

• Regulatory gray zones that allow fantasy games, skill-games, etc. to flourish even when “chance-based” elements are strong.

• High barriers and costs on legal platforms (tax, regulation) vs low barriers for illegal ones (often anonymous, offshore, less regulated) → illegal platforms grow faster.

• Cultural acceptance in some ways, especially when embedded in sports fandom (cricket etc.), or social gaming groups.

• Many users underestimate the risks — loss worst-case scenarios are not well advertised; GamblingHood and similar awareness platforms are still niche compared to the marketing muscle of gambling operators.

Potential Solutions / Policy Measures

To manage the rise in harms while allowing regulated, fair gaming / sports fantasy / skill-gaming, here are some promising approaches:

1. Clear, updated national regulation

   • A law (or amendment) that clearly defines what is allowed vs banned, what is “game of skill” vs “game of chance,” for online platforms.

   • Uniform regulation across states to avoid safe havens and jurisdiction shopping.

2. Licensing and oversight

   • Legal platforms should require licensing, adhere to standards (fair odds, transparency, payout rules).

   • Regular audits, consumer protection, grievance redressal mechanisms.

3. Tax policy balanced to discourage illegal platforms

   • Tax burdens on legal operators should be reasonable; overly harsh taxation can push users toward illegal / unregulated platforms.

   • Consider taxing revenue rather than imposing heavy taxes on deposits, or subsidizing responsible operators.

4. Stronger enforcement against illegal operators

   • Blocking mirror sites, enforcing payment gateway regulations, penalizing advertisements that mislead or do not disclose risk.

   • Collaboration between states and central agencies to clamp down on offshore or illegal sites.

5. Public awareness and education

   • Amplifying the kind of awareness messaging that GamblingHood provides: risks, losses, odds.

   • Financial literacy programs, especially among youth and in rural / semi-urban areas.

6. Responsible gaming / consumer protections

   • Features like loss/loss-limit tools, self-exclusion, age verification.

   • Helplines, counseling for gambling addiction.

7. Monitoring and research

   • Better data collection on number of users, volumes of bets, illegal vs legal market; monitoring harm (psychological, financial).

   • Empirical studies to understand what policies succeed.

Drawbacks / Challenges in Solving the Issue

Implementing the solutions faces challenges:

• Political and economic pressures: Gambling platforms have large user bases and generate tax revenue. Some political actors may also benefit from sponsorships or ad revenues.

• Technical difficulty in enforcement: Mirror sites, foreign hosting, VPNs. Payment systems may be exploited.

• Free-market resistance: Platforms may fight back legal restrictions, claim constitutional rights, etc.

• Differing state laws: India’s federal/state structure means states can have divergent gambling laws, complicating uniform policy.

• Social and cultural resistance: Some segments see gambling as immoral, others see bans infringing freedoms or hurting economic opportunities.

Could “GamblingHood” and Similar Platforms Be Part of the Solution?

Let’s circle back to GamblingHood and consider the potential positive role of awareness / information sites:

• They can balance the narrative. Much of the public messaging or ads are about wins, excitement, rewards. Sites like GamblingHood show losses, risks, and responsible behaviour tips.

• They promote informed decision-making: helping users understand odds, probability, house edge, risk of addiction.

• They can act as a watchdog / consumer advocate, highlighting scams, shady operators, unfair terms.

• They may help pressure governments / regulators to act, by making harms more visible.

However, awareness alone is not enough. Without regulation, enforcement, social support systems, the harm will continue.

What the Future Might Hold (Trends to Watch)

Predicting going forward, here are trends to keep an eye on:

• Regulatory tightening: Some recent actions suggest India is moving toward stricter control. For instance, bills banning or regulating paid online games, stricter licensing, etc.

• Shift in user base: More users from smaller towns and rural areas will come online; hence, gambling growth will spread beyond urban elite circles.

• Innovation in forms of gambling: New types of games, “games in the metaverse / Web3” or crypto-based betting might emerge, which may complicate regulation.

• Corporate pushback / legal challenges: Platforms claiming game-of-skill status may challenge bans in courts.

• Increasing harm awareness / mental health attention: More helpline calls, more public debate, possibly more health/psychiatric research and interventions.

Conclusion

Gambling is rising rapidly in India, propelled by digital transformation, aspirational culture, legal ambiguities, aggressive marketing, and an economic environment where many people are looking for opportunities. While gambling (especially when involving real money) can offer legitimate entertainment and some economic activity, the pace and scale of growth risk significant financial, social, and health harms if left unchecked.

Platforms like GamblingHood play an important role in making visible the harms, promoting awareness, and helping users make informed choices. But to address the problem meaningfully, India will need updated legislation, robust enforcement, balanced taxation, and broad public education.