From Boom to the ban, lift and drop rates of India

Kartik Srinivas (the name has changed) is still shuddering when mentioning rates on the Internet. What began as a sharp sensation to earn a quick dollar, a spiral in a five-year dependence that cost his 26-year savings, peace of mind and almost his future.

Between 2019 and 2024, Shrinivas lost more than 1.5 million rupees ($ 17,000; 13000 pounds). The money included three years of his salary, as well as saving and loans to friends and family.

“I tried everything – applications, local bookmakers, international platforms. I was hooked,” he says.

Until 2024 he was in a loss in his neck.

Srinivas’s story reflects the darker side of the “Distribution” industry (RMG), where players use online platforms to make cash on poker, fantastic sports and other games.

Days ago, India passed a bill banning these games, claiming that they became more addictive and led to financial suffering among people.

The new law makes a proposal or the inclusion of such services that are imprisoned up to three years and a fine of up to 10 million rupees. Promoting them pursues penalties in two years and 5 million rupees, although users are considered as victims, not violators.

The government has defended this step as a way to protect consumers from gambling.

Federal IT Minister Ashvini Vaishnava said the money games had damaged 450 million Indians on the Internet, leading to losses more than 200 billion. Rupees and causing “depression and suicide” among many. The source of this data presented in parliament last week is unclear.

But many in this area called the ban on the movement of the knee, which, according to them, crippled the flowering sector and hurt those who are trying to protect.

Prior to the ban in India, there were about 400 RMG startups, which brought almost $ 2.3 billion with annual taxes and supported more than 200,000 jobs. One of them, Dream11, even sponsored the India’s cricket team.

This is the first federal law to prohibit the online rates’ internet platform, although the sector has long been faced with control, with states such as Adisha, ASAM, Andhra -Pradesh and Telangan, which are already banned. In 2023, the federal government hit 28% of the online game tax.

However, the industry flourished by attracting great global investment and celebrities.

The Mumbai Site Games Lawyer told the BBC that the ban was a “mass failure” for investors who had been downloading millions of dollars in these startups.

He said that while in the field was a need for regulation, the law was made in a hurry and without consultation.

Among the heaviest hit – Dream11 – estimated at $ 8 billion, and after the leading sponsor of the India Cricket team – and $ 2.5 billion My11circle, which is a partner of the Indian Prime Minister, the richest cricket tournament. Both closed real gaming operations.

One of the key disputes of this industry is that the law does not distinguish between “skill games” – which involve decision -making, talent and knowledge – and “random games” that count solely on success. This banned both.

In the past, several Indian vessels in the past believed that cash games are subject to the category of skills and cannot be considered as gambling.

In Karnataki and Tamil Nadu, the courts even hit the bans on state levels on the game platforms on these grounds. And in 2022, the Supreme Court of India was supported by Panjab and the ruling of the Supreme Court Hariana, which classified fantastic sports as “Games”.

Smirit Singh Chandra, who previously ruled political communications in Dream11, wrote on LinkedIn that the ban was introduced “without transition, nuances and consideration of economic realities.”

Mr. The site noted that the companies invested and built their businesses around these court rulings.

The Indian Federation Games claim that the shutdown of “regulated and responsible Indian platforms” will lead to millions of players into the hands of illegal networks, offshore gambling and operators that work without any guarantees and consumer protection.

In many Indian cities, the rate is already passing through local bookmakers that work unattended, which often exploits more than internet platforms.

Notes are usually distributed through WhatsApp or Telegram groups where links are shared with hundreds of users at the same time. Foreign game applications also remain within reach, as many use VPN to bypass the restrictions.

But the government claims even legitimate real money Game platforms work on “opaque algorithms” This makes the user virtually impossible to win – the point of some experts.

Vishal Gondal, co-founder of NCOR Games video games, told the BBC that in competitions such as online Rummy (popular card game), users often unconsciously play against the boots.

Mr -n Gondal added that the algorithm of these boots was designed to promote the gaming platform, ensuring that it almost always acts as a final winner.

“These games are essentially gambling,” said Mr. Gondal. “Calling their skill is like brand alcohol as dairy juice.”

But others like g -s skewers, shocked by a sudden step.

Despite the fact that he no longer plays, he says that increasing awareness of gambling would be much more effective than imposing a blanket ban.

“At least, with these applications, there was a certain account – without them everything can deteriorate,” he said.

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