India’s chief economic adviser calls for a balanced approach to gambling regulation  

India’s chief economic advisor has called for regulators, including those in the gambling sector, to “optimise rather than maximise” oversight to allow for economic growth.

Speaking at the Confederation of Indian Industry’s (CII) Global Economic Policy Forum in New Delhi, V Anantha Nageswaran warned that over-regulation of an emerging market such as online gaming could stifle growth and innovation in the sector.  

At the same time, Nageswaran suggested that an absence of regulation in the industry could lead to misuse, causing a different set of problems. 

He said: “We are a low-income country and we have extensive amount of financial illiteracy, which is true in developed countries as well.  

“So, in that situation, how do we distinguish between not standing in the way of moonshots and in which sectors do we have to be more conscious of social costs and benefits? Whether it is crypto, bitcoins, online gaming, etc.” 

For places where regulation is necessary, Nageswaran urged for transparency from the relevant powers in charge.  

This would include sharing information about why a particular regulation is being enforced, what it sets out to achieve and the data behind it.  

He added: “The same principle of transparency and social costs and benefits that we want to apply to regulated entities should also apply to the regulators themselves. 

“There has to be accountability on the part of the regulator and they have to be conscious of the fact that they represent unelected power.”

Nageswaran also suggested regulators have been too focused on dishing out punishments in the past, rather than encouraging growth and supporting their respective industries.

He continued: “In our country, we have focused more on making sure that not a single act of deviant behaviour goes unpunished, and that is something we need to reflect on.  

“Where is the trade-off? Especially in the current context, where I think growth is going to be at a premium. 

“Therefore, what is it that the regulator has to optimise rather than maximise in this case? That is the question that the regulators have to ask themselves.” 

Reacting to his comments on LinkedIn, the All India Gaming Federation said Nageswaran’s proposal would be beneficial to the growth of the Indian market.

The trade group said: “Regulators must focus on optimising, and not maximising oversight, says chief economic advisor V. Anantha Nageswaran. 

“This is particularly relevant for emerging sectors like online gaming, where excessive regulation could stifle innovation and growth, yet the absence of oversight could lead to misuse.

“Striking the right balance will be critical to sustained economic growth for the online gaming sector.”

India elected to retain its 28% Goods and Services Tax rate earlier this year, which has already seen Betway pull out of the market.