Though online gambling is legal in most parts of India, it is not fully controlled in most states.
Three other states have banned online gambling, including Sikkim, which aggressively implements a compliant online gambling system.
Telangana, Andhra Pradesh, and Maharashtra are the three states in question. Even though internet gaming is illegal, no one has been charged with any offenses to date.
In India, gambling is a state-level governance problem, so the legality of various betting and gaming practices varies by state. However, there are a few federal rules that apply to both online and in-person gambling.
In this article, we go through the entire gambling law in India. Let's begin with a broad overview of India's gambling rules.
In India, there is federal gambling legislation.
In India, three federal laws affect gambling, but only one deals with the Act of gambling.
Since they regulate online financial transfers, the other two regulations affect online gaming. More information about any of these federal laws can be found here.
The 1867 Public Gambling Act
The Public Gaming Act is India's most well-known federal gambling law.
The Public Gaming Act extended to the ten states that were still under British jurisdiction when it was enacted. It now extends to every jurisdiction that does not have its gambling and casino regulations.
According to the Public Gambling Act, it is illegal to run a gambling house or be present within one. The Act goes on to describe what constitutes a gambling house and what constitutes gaming.
There was, though, one significant exception. Skill-based games are not called gaming, according to Section 12 of the Public Gambling Act.
The Act does not refer to specific games." Nothing in the previous provisions of this Act shall be construed to refer to any game of mere skill, regardless of where it is played.
Regrettably, the concept of a skill-based game is often vague. Several court cases have been filed in India to decide whether a particular game is called a game of skill or chance.
The Supreme Court of India ruled in Dr. R. K. Lakshmanan v. State of Tamil Nadu [AIR 1996 SC 1153] that the general consideration in deciding whether a game is gambling is chance or ability.
Since that court case ruled that horse racing is a skill-based game, India's betting laws permit legal horse race betting worldwide.
The Supreme Court's decision that the overriding aspect should decide whether a game is dependent on talent or chance is unexpected. This seems to conflict with India's Constitution, which describes gambling as follows:
“Any activity or undertaking whose result is decided by chance or mistake, or any action or undertaking entered into or performed with the knowledge of the probability of winning or losing.”
According to a previous case, Rummy is also a talent game (State of Andhra Pradesh v K. Satyanarayana and Ors [AIR 1968 SC 825]).
In recent years, the Public Gambling Act has been amended a few times. The concept of gambling was changed in 1970 to include “wagering or betting but not a lottery.”
In 1998, India passed the Lotteries Control Act, which explained the legality of lotteries.
States were granted the power to establish their own lottery rules under this federal legislation. The other restriction is that lottery draws cannot take place more than once a week.
Since the Public Gaming Act was enacted in 1867, it was passed well before internet gambling was conceived.
There are no references to online casinos, and it's unknown if online casino sites are considered gaming houses under India's gambling laws.
The Foreign Exchange Management Act of 1999 was passed to control the foreign exchange industry.
The Foreign Exchange Management Act (FEMA), which was enacted in 1999, is another federal law that affects online gambling's legality in India. It is a form of financial transaction that includes foreign trading and currency exchange.
The vast majority of the Foreign Exchange Management Act does not extend to individuals and has little to do with gambling. As a result, we'll cover the portion that pertains to online legal gaming in India.
Depositing money in a currency other than Indian rupees into an online casino account may be called illicit currency trade.
Customers of online casino sites have two choices for accessing their websites without breaching FEMA. The first choice is to allow rupee transactions. Accepting the money, though, would not obligate you to use it in commerce.
As a result, geolocation tools can be used by online casinos and betting sites cricket to decide your location. They will limit transactions that start in India to only being performed in rupees.
That choice is efficient, but it adds extra work for both the platform and the gamblers. Most online gaming sites opt for the second alternative, urging Indian gamblers to use mobile wallets rather than credit or debit cards.
Electronic wallets have separate foreign exchange laws, so the gambling platform can process the payment without breaking FEMA, regardless of the currency. They also make it very simple for consumers to complete purchases.
If you're gambling online in India, your banking options can be restricted. The Foreign Exchange Control Act is to blame for this. When browsing for an online casino or betting platform, keep this in mind.
The year 2000 saw the passage of the Information Technology Act.
The Information Technology Act of 2000 is the most recent federal Indian gaming statute. It is comprehensive legislation that encompasses nearly all online practices. The Information Technology Act makes no mention of online gaming being illegal in India. In reality, the legislation makes no mention of gambling at all.
However, there is a clause in the law that allows the Indian government to block international websites as it sees fit.
The government has the authority to order internet service providers to restrict access to specific websites, as it has done with certain online poker sites.
It's unclear whether those websites have been censored or when they'll be unblocked.
When gambling online in India, you should be aware of this possibility, mainly using an unlicensed platform.
State Gaming Rules in India
In India, state online gaming rules take precedence over federal gambling laws. The Public Gaming Act will apply if your state does not have any gambling laws.
If you live in one of these jurisdictions, you should be aware of the various betting and gaming laws that apply to you.
Gambling Laws in Nagaland
State map of Nagaland
The majority of gambling laws either outright forbid gambling or restrict and legalize it. In India, the Nagaland Prohibition of Gambling Act takes an unusual approach to online gambling.
It outlaws all forms of online gambling in which chance outweighs ability. It does, however, issue licenses to businesses who wish to sell online skill games like poker and Rummy.
Since it is licensing legislation, the Act is much more intriguing. The Finance Commissioner of Nagaland is in charge of licenses, and any Indian company may apply for one.
This is especially intriguing because it means that a company that earns a Nagaland license would legitimately sell its services to other Indian states.
However, the legislation does note that such companies cannot exist in states where skill games are expressly prohibited.
To be eligible for a Nagaland skill-based gaming license, the company and its technology servers must be based in India.
Global operators who already run online casinos or poker sites will not be approved for a Nagaland gaming license because they do not meet such criteria.
According to another stipulation, corporations that sell games of chance are still ineligible for the skill-based gaming license. As a result, since they only sell poker, online casino operators are not qualified for a permit.
The benefit of getting state-licensed online poker sites is that Nagaland will inspect them to ensure that they are running fair games and defending their consumers' rights.
Nagaland's Gambling Act is one-of-a-kind, and it could pave the way for organized poker in India. However, several international operators now offer poker to Indian players without obtaining a license.
These businesses are stubborn about not giving up their casino games to acquire a license because they have historically been permitted to operate without one.
Gambling Laws in Sikkim
State map of Sikkim
In terms of gambling laws, Sikkim is one of the most democratic states in India. The state has legalized land-based casinos while simultaneously creating a compliant online gaming industry.
Sikkim's casino licensing act was passed in 2008, and the state's first land-based casino opened in 2009. They began accepting applications for three online casino licenses in 2010.
The position of the state impacted their decision to develop a casino industry. Sikkim is a tiny state in India's northwestern corner, sandwiched between Nepal and Bhutan.
Many Indian gamblers used to fly via Sikkim to reach casinos in Nepal before 2009. The state needed to keep the country's money, so land-based casinos in five-star hotels were allowed.
Adding two land-based hotel-casinos to Sikkim's tourism sector was a great way to support its economy. Travelers flock to the state to see the breathtaking Himalayan ranges.
The majority of casino patrons are visitors, but Sikkim locals enjoy the ease of having two casinos to choose from.
In 2010, Sikkim became the first state to allow online gambling. Several casino owners, including William Hill and Betfair, applied for a franchise. Three of those firms were given a conditional license, authorizing them to begin running online casinos as soon as their fees were charged. A total of ten businesses have issued letters of intent.
None of these firms, however, ever set up a casino website in Sikkim. Play Win is the only online poker platform in Sikkim, and it only sells online lottery tickets.
It's conceivable they thought it wasn't worth it to deal with unauthorized bookmakers. Nonetheless, the possible explanation is that Sikkim's limited population did not raise enough income to warrant the license fees and taxes.
When the Sikkim Casinos Act was first enacted, it contained wording that authorized casino players would be allowed to operate throughout India.
The federal government intervened, telling Sikkim authorities that they lacked the power to allow gambling in the country as a whole.
When those casino operators discovered that their customer base would be limited to Sikkim's 619,000 inhabitants, they realized that their attempts would be impossible to be successful.
Sikkim has India's most advanced online poker laws, but it doesn't support anybody because there aren't enough competitors to lure the most prominent casinos.
Gambling Rules in Goa
Goa is a state in India.
Goa is another state that has made land-based casinos legal in five-star hotels. It is a small state on India's western coast that attracts beachgoers looking to explore the Arabian Sea.
In the early 2000s, Goa needed to raise tourism revenue, so they enacted casino laws as their first move. When the first land-based casino opened in 1999, it appeared that the state would only allow one casino to operate.
The state government announced in 2007 that it would be issuing some more casino licenses. On the Mandovi River, there are currently eight casinos on land and five casino cruises. Many of Goa's casinos have an entrance fee that ranges from 700 to 6000 rupees. Some casinos charge the same entrance fee all year, and others charge extra on weekends or during peak seasons.
For most casinos, admission fees cover the expense of unlimited alcoholic drinks and snacks. Some casinos will give you a voucher for 500 or 1000 rupees that you can use on any of their games.
Telangana, Andhra Pradesh, and Tamil Nadu are three states of India.
A few states have made it illegal to bet online within their territories. In 2017, Telangana became the first state to enact such legislation. In 2020, Andhra Pradesh and Tamil Nadu will suit.
An event in Andhra Pradesh led legislators to pass legislation prohibiting online gaming. A young man committed suicide due to the pressures he was experiencing as a result of outstanding debts he had accumulated while gambling online.
Following the attack, the state legislature determined that internet poker was too risky because it attracted a younger demographic of gamblers. In September 2020, they passed a bill banning it.
The rules of all three states are strikingly close. They all make nearly all kinds of online gaming illegal, including sports betting, lottery transactions, and even Rummy.
For your first offense, you could face up to six months in prison and a 5,000 rupee fine if you are found gambling online in either of these states. Operators and repeat offenders could face up to two years in jail and a fine of 10,000 rupees.
The enforcement of online gaming regulations is problematic for law enforcement. They don't have the equipment or money to monitor everyone's machine and mobile operation constantly.
Andhra Pradesh is seeking to circumvent this problem by persuading India's government to pass the Information Technology Act. They've urged the government to close down more than 132 betting websites in the state by requiring internet service providers to ban them.
According to Chief Minister Reddy, anybody who supports online gambling sites in their operations could be held responsible for breaching the Gaming Act of Andhra Pradesh. This involves internet service providers that do not limit access to online casinos and gaming sites.
If you live in Telangana, Andhra Pradesh, or Tamil Nadu, you should be careful about using online gaming pages. However, government authorities are more concerned with targeting casino and internet service providers than with punishing actual players.
Other Legitimate Gaming Opportunities in India
We've already looked at the federal and state gaming rules in India, primarily focused on casino sports. The Public Gambling Act of 1867, on the other hand, incorporates sports betting in its scope.
India's gaming rules have two significant exceptions.
Horse racing is legal in India, and there are many live racetracks scattered throughout the country. It is legal to gamble on these races, and bookmakers are available on-site. There are also off-track betting opportunities.
Horse racing betting is legal in India since it is considered a skill game. Skill-based games are excluded from the definition of gaming under the Public Gambling Act of 1867.
In Dr. R. K. Lakshmanan v. State of Tamil Nadu, the Supreme Court ruled that horse race betting is a talent game. Since the case did not conclude in 1996, horse race betting has been around for much longer.
The lottery is another kind of legal gambling in India. The Lotteries Regulation Act of 1998 granted each state the option of authorizing lotteries. There are certain limits, such as a weekly limit on draw games. The only two legitimate ways of gambling in India are horse racing and lotteries. The Public Gambling Act governs all casino games.
India's Overseas Gambling Sites
Many people ask whether using online gaming sites based in countries other than India is safe. A significant number of online casinos and sports betting sites take bets from Indian teams.
The majority of these sites are authorized and controlled in other countries, making them legal to run.
None of India's federal gaming laws forbid international sites from running and welcoming Indian matches.
Players must exercise caution when conducting financial transactions with international sites. Instead of using a foreign currency, you can complete all purchases in rupees or use an electronic wallet.
If an online casino takes credit card deposits in a currency other than Indian rupees, they are breaching Indian foreign exchange rules.
These websites are open and usable for everyone in India. Three states, however, have declared online gaming illegal.
In these states, you could face criminal prosecution, but the government is more interested in suing the owners than actual players. You should be able to proceed using overseas gaming sites without apprehension as long as you are mindful of the possible dangers and foreign currency rules.
India's Gambling Laws Have a Long History
India isn't quite as well-known as gambling hotspots like Las Vegas and Macau. Compared to what can be seen in those cities, the country's modern gambling industry is frustrating.
That was not always the case, though. India is home to some of the oldest gambling history and some of the games we are acquainted with.
For millennia, the Vedic faith, a forerunner to modern Hinduism, ruled India. The knowledge of the Vedas was not available to ordinary people, as two prophets understood.
They wrote The Ramayana and The Mahabharata, two ancient Sanskrit scriptures. Both of these epic tales provide some of the oldest known gambling references.
Games of chance, such as gambling boards and dice games, are included in the Ramayana. The panels are thought to have been used to play an early form of chess, and scholars say they date back to 7300 B.C.E.
Gambling had become a popular pastime in India by the 15th century. It was a well-regulated market, with gambling houses required to obey fairness laws.
Around the same time, the first examples of a gambling tax were made. Indian kings and administrators strictly imposed gambling house laws for patrons to pay the taxes. Cricket was introduced to India by British colonizers in the 18th century, and it soon became one of the most common sports in the world. The popularity of cricket has boosted interest in sports betting.
Gambling was common in India, as Britain soon learned. In 1867, they sought to regulate it by enacting the Public Gambling Act.
While the legislation still regulates gambling in India, the Constitution also granted states the power to establish their betting and gaming rules.
The Effect of India's Gambling Laws on You
If you live in India or are considering a trip there, you should know how the country's gambling laws will affect your choices.
In Goa, there are several land-based casinos, and two more casinos are located in Sikkim. If playing casino games is a massive part of your holiday plans, one of these two tourist destinations should be on your list.
You can play online if you can't make it to one of the land-based casinos. It is better to engage with an offshore online casino or betting platform than to interact with a black market bookmaker.
Only a few states have laws against online gaming. If you live in one of those states, you should be mindful of the dangers of using one of these websites. To be informed, you can talk with an attorney.
One of the online platforms we suggest is your best choice for a wide range of gaming opportunities, including casino games and sports betting.
