The Great Indian Gamble
By Manasvi K,
SY BSc. Economics (2023-27)
Reading time~ 5 minutes
Gambling is a risk. The feelings of uncertainty and unpredictability create an adrenaline rush, and this adrenaline is addictive. So addictive in fact, that it is psychologically considered on the same plane as an addiction to drugs and other substances.
Gambling has been termed as mankind’s oldest activity. Based on historical evidence gathered from old stories and epics, gambling may have started in 7300 BC in India(there also exists an initial reference date of 430 BC). It is safe to say that gambling runs in our nature, and taking great gambles, such as the Pandavas risking their kingdom and their wife (Draupadi), is a given when the satisfaction of a great reward looms enticingly in front of you, much like chasing a carrot at the end of the stick.
Despite the controversies surrounding gambling, it seems to be quite prevalent. It provides a fast way of gaining lucrative amounts of money. Gambling is considered an addiction equivalent to addiction to drugs and other substances. Indian gamblers have found new loopholes to jump through to keep the gambling industry alive and thriving.
The Public Gambling Act of 1867 and The Prize Competition Act of 1955 prohibit gambling in public places and gambling houses and restrict gambling activities that provide awards and prizes. However, there are loopholes to escape this law and two states out of twenty-eight have legalised gambling (with restrictions). Betting on ‘games of skill’ such as chess, gold, and horse race betting where success depends on the skill, experience, knowledge, attention and adroitness of the player is permitted by law. Rummy is categorised as a game of skill, albeit being played for money, Rummy involves the memorisation of the fall of cards and the skill and knowledge of holding and discarding cards.
A newfound craze among the youth and cricket lovers is the rise of fantasy apps. Dream11, My11circle, MPL and others have gained traction because of their addictive nature and famous ambassadors ranging from cricketers to movie stars and models. This kind of sports betting, albeit illegal, has many loopholes. The Dream11 site states that winning is possible through knowledge, judgement and analysis, hence Dream11 does not come under The Public Gaming Act. According to the site, the Rajasthan High Court declared Dream11 a game of skill that does not involve offences of betting and gambling. The statistics of people losing their money show otherwise. It could be argued that the people who do end up losing their money are simply not skilled but it’s a common consensus that these fantasy apps do come under the umbrella of gambling. As of now, Dream11 boasts a whopping 210 million registered users.
According to technology expert Nikkhhil Jethwa, the game is designed in such a way that the company ends up earning more than the players, and when players do win, they end up with meagre earnings. This sprawl in users can be accredited to the ‘Prospect Theory’ (the tendency to choose guaranteed wins with low amounts compared to low chances of winning a high amount) and ‘Reflection Theory’ (avoiding risks when we might gain something but are more willing to take them when trying to avoid losing something).
For instance, we are more satisfied with winning 50 Rupees than gaining 100 but losing 50. Even though the outcome is the same, the prospect of losing 50 Rupees is troubling. Because people tend to be risk averse to losses, they behave irrationally and chase losses which turns into a gambling disaster. The players try to gain back what they lost but instead end up losing even more.
As mentioned, two states that have legalised gambling are Goa and Sikkim. In 1992, Goa initially started distributing gambling licences to luxury hotels, permitting them to run slot machines, and in 2013, the casinos in Goa contributed an impressive 135.45 crores in the form of various taxes such as entry fees, liquor licences, entertainment and offshore licences proving that gambling can be a significant source of revenue for the state. In 1996, table games such as poker and roulette were also allowed with the specification that they must only be played on cruise ships and not on land.
Since gambling was prohibited on land, a popular option is to play it on the internet, in the form of online casino games or poker. Casino games collected $39.38 million in revenue, with the projected growth rate from 2023 to 2027 is 8.59% with 12.17 million users.
Although the risks associated with gambling are known and have been proven to be dangerous, people continue to gamble for a multitude of reasons. In hopes of a better lifestyle, an escape from daily mundane life or perhaps just for the thrill of the game. The popularity of gambling does not seem to be waning. The challenge remains to balance the thrill of the game with regulations ensuring that this ‘thrill’ does not get out of hand.