RUE-LETTE: The human cost of online gambling – Economic Times

Siphoning off money from employers, faking their own kidnapping for ransom, robbery and even taking their own lives, online gamblers can be pushed to desperate lengths. While gambling for money has been a timepass for decades in India inside homes or even outdoors on open lawns and street corners where men gather to pay teen patti and rummy the pandemic has pushed, much like everything else, the games online. Add to it the availability of cheap data, an uptick in digital transactions, higher penetration of smartphones, and rapid expansion in supply and quality of games, and you have a potent mix before you.

Delhi-based psychiatrist Dr Pankaj Kumar says there has been a 15-20% increase in the number of people seeking treatment for gambling addiction after the lockdown. For most people, it starts as entertainment which grows into an addiction. Gamblers are lulled by the false belief that they can leave anytime.

Which is what happened to 17-year-old Ashwini* who started playing some games as a way to redeem reward points. He received some gifts which spurred his interest further. What started as fun and games quickly became a habit. He moved from casual gaming to playing for money, borrowing from friends and pilfering valuables from home, even managing to access his fathers bank account.

It was only then that the father realised that his son could even kill him in thisfit of rage, Dr Kumar says. The teen was brought to the doctor for help earlier this year and is now under psychiatric treatment.

Gambling releases dopamine which is what makes it addictive. Dr Manoj Sharma, professor at NIMHANS Bengalurus SHUT (Service for Healthy Use of Technology) clinic that tackles tech de-addiction, says that people were driven by boredom and lack of work to go online during the pandemic.

These risks are even more in the case of minors. Some websites do not conduct know-your-customer (KYC) or other age verification checks. This allows minors easy access to these websites, exposing them to unsuitablecontent and enticing them to engage in illegal activities, says a study on online gaming by tech policy think tank ESYA Centre. It also notes that gambling is associated with higher financial distress and lower financial inclusion and planning, higher rates of future unemployment and physical disability, and at its most acute, with substantially increased mortality.

But what about the legality?

While betting and gambling are illegal across India (except in some states like Sikkim and Nagaland) under the 1867 Public Gambling Act, the colonial-era law does leave room for an exception by legalising games of skill. Subsequent court orders have recognised rummy, chess and poker as games of skill rather than chance. But concerns related to gambling addiction have prompted the southern states of Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu to bring in laws banning gambling for money. However, some of these bans have been successfully challenged and overturned with the courts recognising games like rummy and poker to be skill-based and legal. The Tamil Nadu and Karnataka governments have challenged this in SC where the matter is currently pending. In fact, the Tamil Nadu governor on Friday approved an ordinance to ban online gambling.

Domestic gaming companies contend that there is no uniformity in laws which differ from state to state. They also argue that while Indian companies are being subjected to taxation laws with a Bengaluru-based online gaming company being charged with the largest indirect showcause notice in history that of Rs 21,000 crore companies registered outside the country are exempt from the legislative framework.

Meanwhile, advertisements for such websites continue with disclaimers. For example, in December 2020, advertisements of offshore betting websites were shown during the live-streaming of cricket matches between India and Australia. Many use cricket and Bollywood stars for endorsement. Self-regulatory organisation E-Gaming Federation (EGF) has demanded a central regulation that will protect the interests of players and industry.

We understand that gaming is an immersive experience and players can go overboard but bans are not the answer. We are seeking a soft touch regulation that will help the legit industry grow and protect players interests too, says EGF CEO Sameer Barde. The federation has already put in place a code of conduct for its members that include age-gating, putting limits on the time and money a player spends and KYC norms so minors do not play money games. In August, the government set up a task force to frame policy for the sector.

Technology and gaming lawyer Jay Sayta says all games should be regulated. All games whether skill or chance based should be regulated and taxed so that there is compliance, otherwise the industry will go underground and continue illegally.

* Name changed

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RUE-LETTE: The human cost of online gambling - Economic Times