It's not a cultural thing but, gambling has a remarkable influence in the history of India. It is obvious that Indian people really likes to gamble and crypto just fueled the interest by offering anonymous bets. If government is going to regulate and make it legal. It would be good for the country as they can't do much against the underground gambling.
Gambling would surely boost their economy and there's no solution for those underground gambling that exists in India. Its not them who only tackles with this problematic situation but many countries do so.
They are legalizing it and if you'll search for different Indian-based online casino's, there's too many of it that exists today including the non-crypto and crypto casino's.
A lot of posts have always been wanting gambling to be legalized in some countries, and it's okay because if you manage to think about it when you are winning or losing to the casino, there would still be income for the casino since there are a lot of players there. So it can be taxed.
It is good that they are going forward with that and in some other countries, I'm not sure why they are not yet legalizing it or probably wants to have a cut with the portion of the profit or something. It would be interesting if there were to be news about this kind of stuff.
Most of the Indians are involved in sports betting and due to sports huge betting India government has decided to legalize all kinds of gambling online or offline. Now people have no fear to be arrested by law enforcement agencies. I think if all governments in the world legalize gambling they can generate handsome revenue from these gamblers because they are very large in number.