Legal Gambling In India

 admin

Taking a break from the monotonous schedule is an important requirement for rejuvenation of people. Games serve as a source of entertainment, destressing the individuals from their routine activities. Played in numerous forms, varying from those deploying physical activities to the ones involving strategizing instincts.

The games involving mental faculties to win the challenge have been played since times immemorial. Since the days of the reign of kingdoms, games like chess, pacheesi (a form of ludo), snakes & ladders have always fascinated the royal families. By changed outlook and different variations the games still engross number of people towards them. Not merely restricted to their play on physical media, the games have now expanded their scope on the virtual world as well.

The playing of games for enjoyment purposes is allowed under the legal regime. The situations become tricky when it comes to the playing of games with the involvement of stakes. The law in India remains unclear as to the gaming domain. The major point of consideration which arises is the difference between gaming and gambling. Distinction has been made betweengames of skill and games of chance.

Gambling / games of chance are a play for value against an uncertain event in the hope of gaining something of value and is entirely dependent on chance/ luck. The games of such nature are allowed to be played once the operator of the game obtains a license for it in the said regard.

The reason most Indians believe that gambling is illegal in India is because you will not find any casinos or gambling houses in the country with the exception of three states. Goa, Sikkim and Daman are the three states in India to have a legalized casino industry.

The Public Gambling Act of 1867 bans operating and running public gaming houses. There are various types of gambling in India, i.e. Sports betting, online gambling, casino gambling, lottery, horse racing, and skill games. The legal position on gambling in India is split into two categories, i.e. Games of chance and games of skill. The last recorded update on gambling in India is the suggestion made by the Law Commission of India. Similar to what is mentioned above, The Law Commission of India suggested legalising betting and gambling activities in India in a very regulated environment. Information Technology Act, 2000.

Games of Skill are the games that base success upon the existence of skill.

The Legal framework clearly recognizes the games with below elements are not “gambling”[1]:

India
  1. where success depends on substantial degree of skill; and
  2. despite there being an element of chance there is requirement of application of skill.

The law in India states a game to be a game of skill, even with the element of chance if it depends upon:[2]:

  • Superior knowledge;
  • Training;
  • Attention;
  • Experience;
  • Adroitness of the Player;
  • Element of Skill predominates over the element of chance

The Court while deciding on the Public interest litigation[3] filed claiming the game ‘Kaun Banega Crorepati based on the British show “Who wants to be a Millionaire” held that the game cannot be regarded as gambling. It was discussed that as per the format of the game, the candidate is asked question and given four options out of which he has to pick the correct answer. It was contended that the amount won in the question would serve as a stake for the next question and thus result in gambling. The Court held that skill was involved in answering of question put forth and therefore it was a game of skill and not gambling.

JURISDICTION

Gaming/ gambling being a matter of jurisdiction of State legislations are governed as per State/ local laws. The States have devised their independent laws regulating gaming and gambling activities within their territories. The State law(s) which regularize gambling are as follows:

  1. The north-eastern State of Sikkim by the virtue of Sikkim Casinos (Control and Tax) Act, 2002 and Sikkim Casino Games (Control and Tax) Rules, 2007, regulates the operation of casinos, thus allowing gambling activities on board an offshore vessel.
  2. The western State of Goa under the provisions of the Goa, Daman and Diu Public Gambling Act, 1976, permits gambling activities in five star hotels post obtaining license after complying with the guidelines issued.

The State law(s) which strictly prohibit gambling are:

  1. The northeastern State of Assam by virtue of The Assam Game and Betting Act, 1970.
  2. The eastern State of Odisha: by virtue of The Orissa (Prevention of) Gambling Act, 1955
  3. The central western State of Gujarat vide order dated November 17, 2017, dismissed the petition[4] of the club seeking approval of allowing the playing of poker and rummy under the Gujarat Prevention of Gambling Act, 1887.

ONLINE GAMING LAWS IN INDIA

In India, the online gaming law is at a very nascent stage and is being administered by the available, if any, local laws. The online gaming involving stakes is neither per se prohibited in India, nor are regarded as gambling activities. The presence of numerous online games including poker bears testimony to this fact. While the overall situation for online gaming is favorable in India, 24 out of the 29 States and all the 7 Union Territories permit the playing of online games with stakes. Only a few states expressly prohibit any wagering/ betting activities in toto. The respective state law(s) which prohibit/ regularize the playing of online games are as under.

  1. The northeastern State of Assam by virtue of The Assam Game and Betting Act, 1970.
  2. The eastern State of Odisha: by virtue of The Orissa (Prevention of) Gambling Act, 1955
  3. The Government of the newly constituted southern State of Telangana is in the process of framing a law based on their issued ordinances thereby imposing ban on online betting and gambling.
  4. The north-eastern State of Nagaland regularizes online gaming involving stakes by mandating the requirement of a license (involving license fees) for the same through the Nagaland Prohibition of Gambling and promotion of Online Games of Skill Act, 2016 & Rules, 2016.

CONCLUSION

The law regarding the governance of games remains in the grey area. There persists the requirement to clearly establish the criteria distinguishing the game of skill from a game entirely dependent upon chance. Being governed under the regime of the State Legislation, there remains absence of a uniformed opinion ensuring legality of certain games over others. Mere involvement of stakes is an inefficient mechanism to tag a game as a gambling activity. In the era of growing acceptance and evolution of gaming, there is a requirement of a Central effective legislation throwing light on the activities which may be specifically classified as gambling separating it from those involving preponderance of skill

[1] State of Bombay v. RMD Chamarbaugwala[ A.I.R., 1957 S.C. 699] - held by the Apex Court of India

[2] Dr. K.R. Lakshmanan vs State Of Tamil Nadu & Anr [1996 AIR 1153] - held by the Apex Court of India

[3] Bimalendu De And Etc. vs Union Of India (UOI) And Ors. [AIR 2001 Cal 30]

[4] Special Criminal Application No. 3900 of 2017Taking a break from the monotonous schedule is an important requirement for rejuvenation of people. Games serve as a source of entertainment, destressing the individuals from their routine activities. Played in numerous forms, varying from those deploying physical activities to the ones involving strategizing instincts.

The games involving mental faculties to win the challenge have been played since times immemorial. Since the days of the reign of kingdoms, games like chess, pacheesi (a form of ludo), snakes & ladders have always fascinated the royal families. By changed outlook and different variations the games still engross number of people towards them. Not merely restricted to their play on physical media, the games have now expanded their scope on the virtual world as well.

The playing of games for enjoyment purposes is allowed under the legal regime. The situations become tricky when it comes to the playing of games with the involvement of stakes. The law in India remains unclear as to the gaming domain. The major point of consideration which arises is the difference between gaming and gambling. Distinction has been made betweengames of skill and games of chance.

Gambling / games of chance are a play for value against an uncertain event in the hope of gaining something of value and is entirely dependent on chance/ luck. The games of such nature are allowed to be played once the operator of the game obtains a license for it in the said regard.

Legal Gambling In India

Games of Skill are the games that base success upon the existence of skill.

The Legal framework clearly recognizes the games with below elements are not “gambling”[1]:

  1. where success depends on substantial degree of skill; and
  2. despite there being an element of chance there is requirement of application of skill.
Indiana

The law in India states a game to be a game of skill, even with the element of chance if it depends upon:[2]:

  • Superior knowledge;
  • Training;
  • Attention;
  • Experience;
  • Adroitness of the Player;
  • Element of Skill predominates over the element of chance

The Court while deciding on the Public interest litigation[3] filed claiming the game ‘Kaun Banega Crorepati based on the British show “Who wants to be a Millionaire” held that the game cannot be regarded as gambling. It was discussed that as per the format of the game, the candidate is asked question and given four options out of which he has to pick the correct answer. It was contended that the amount won in the question would serve as a stake for the next question and thus result in gambling. The Court held that skill was involved in answering of question put forth and therefore it was a game of skill and not gambling.

JURISDICTION

Gaming/ gambling being a matter of jurisdiction of State legislations are governed as per State/ local laws. The States have devised their independent laws regulating gaming and gambling activities within their territories. The State law(s) which regularize gambling are as follows:

  1. The north-eastern State of Sikkim by the virtue of Sikkim Casinos (Control and Tax) Act, 2002 and Sikkim Casino Games (Control and Tax) Rules, 2007, regulates the operation of casinos, thus allowing gambling activities on board an offshore vessel.
  2. The western State of Goa under the provisions of the Goa, Daman and Diu Public Gambling Act, 1976, permits gambling activities in five star hotels post obtaining license after complying with the guidelines issued.

The State law(s) which strictly prohibit gambling are:

  1. The northeastern State of Assam by virtue of The Assam Game and Betting Act, 1970.
  2. The eastern State of Odisha: by virtue of The Orissa (Prevention of) Gambling Act, 1955
  3. The central western State of Gujarat vide order dated November 17, 2017, dismissed the petition[4] of the club seeking approval of allowing the playing of poker and rummy under the Gujarat Prevention of Gambling Act, 1887.

ONLINE GAMING LAWS IN INDIA

In India, the online gaming law is at a very nascent stage and is being administered by the available, if any, local laws. The online gaming involving stakes is neither per se prohibited in India, nor are regarded as gambling activities. The presence of numerous online games including poker bears testimony to this fact. While the overall situation for online gaming is favorable in India, 24 out of the 29 States and all the 7 Union Territories permit the playing of online games with stakes. Only a few states expressly prohibit any wagering/ betting activities in toto. The respective state law(s) which prohibit/ regularize the playing of online games are as under.

  1. The northeastern State of Assam by virtue of The Assam Game and Betting Act, 1970.
  2. The eastern State of Odisha: by virtue of The Orissa (Prevention of) Gambling Act, 1955
  3. The Government of the newly constituted southern State of Telangana is in the process of framing a law based on their issued ordinances thereby imposing ban on online betting and gambling.
  4. The north-eastern State of Nagaland regularizes online gaming involving stakes by mandating the requirement of a license (involving license fees) for the same through the Nagaland Prohibition of Gambling and promotion of Online Games of Skill Act, 2016 & Rules, 2016.

CONCLUSION

The law regarding the governance of games remains in the grey area. There persists the requirement to clearly establish the criteria distinguishing the game of skill from a game entirely dependent upon chance. Being governed under the regime of the State Legislation, there remains absence of a uniformed opinion ensuring legality of certain games over others. Mere involvement of stakes is an inefficient mechanism to tag a game as a gambling activity. In the era of growing acceptance and evolution of gaming, there is a requirement of a Central effective legislation throwing light on the activities which may be specifically classified as gambling separating it from those involving preponderance of skill.

Is gambling legal in india

Get the full overview of the legal situation of gambling in India right here

Many of our readers have asked us if it’s legal to gamble in India. We understand why many of you are having this concern, so we decided to write this in-depth article to give you the most correct answer and guide you to gamble legally in India. The Indian gambling law is vague and unclear, which makes a lot of people confused. We are all good citizens, and none of us wants to break the law.

Through our own research, we have always believed that gambling is legal in India, but to make the point very clear, we decided to team up with some of India’s top legal experts to make absolutely sure that we are on the right side of the law.

When it comes to gambling, the practice is frowned upon by some Indians and embraced by many others. Gambling is really an issue that divides the country. Some believe it should be fully legal, others believe it should be regulated and some conservatives believe it should be completely prohibited.

But what is the current legal situation of gambling in India? Unfortunately, the answer is not that straightforward. In this article, you will discover how and where you can gamble legally, which depends a lot on where you live and how you intend to gamble.

BIG BASH LEAGUE 2020-2021

BIG BASH LEAGUE 2020-2021: Big Bash League is the 10th season of KFC Big Bash League with a total of 61 matches to be played between 08 teams. The tournament is scheduled to start on 10 December 2020, and finish on 6 February 2021, with the majority of the matches being played at night. TEAM […]

Read more

Is it legal to gamble in India?

To give you the most correct answer to this question. We have allied ourselves with one of the top legal experts on gambling in India. Mr. Sameer Kapoor Senior Advocate in the Odisha State Bar Council. Through our interview, He will attempt to give us the most legal and correct information in this article. So let’s start from the beginning.

Gambling was first prohibited in India during the colonial period under the Public Gambling Act of 1867. This law made it illegal to offer gambling services on a federal level, as well as to visit and use a public gambling facility. The law did not ake any mention of online gambling, as it was made many years before the invention of the internet.

So along comes the internet, and people start asking: Does that mean online gambling is legal, because it is not expressly forbidden under the law of 1867? The short answer is yes. If the government of India had wanted to fully prohibit online gambling, they could have amended the law to prohibit online gambling, but they never did that.

Instead, they left it up to the individual states to decide whether or not to legalize or prohibit gambling in their territory. In the state of Maharashtra, online gambling is completely prohibited, whereas, in the states of Sikkim and Goa, online gambling is officially legal and regulated.

Is gambling legal in indiana

In most other Indian states, there are no specific laws regarding online gambling, which makes it a legal grey area. For example, in the state of Tamil Nadu, it is neither legal nor illegal to gamble online. Therefore, it is not a prosecutable offense to gamble online in any state except Maharashtra.

We understand that some people may have different interpretations of the law, but after having consulted with Mr. Manoj Mishra and several other legal experts in India, they have ensured us that online gambling is not a prosecutable offense, and no one has ever been convicted or let alone prosecuted for online gambling.

The law simply states that gambling providers may not operate on Indian territory unless expressly allowed by the individual states. That is why all of the betting sites and online casinos we recommend are located outside India. It is still completely legal and possible for Indian players to start an account and place bets with these online gambling sites.

Horse racing is legal but cricket is not

In 1996, it was decided by the Supreme Court of India that horse race betting should be legal because it is skill-based rather than based on luck. This beckons the question, why is horse race betting based on skill when cricket or football bet is not? It takes at least the same amount of skill to predict the outcome of a cricket match, no?

Although we certainly agree that horse race betting should be legal, it seems completely ridiculous to make this distinction from any other sport. The only reason why policymakers decided to legalize horse race betting, is because they know that if they prohibited this, it would be the end of horse breeding in India, which has become a very profitable and prominent industry in India.

One could then ask, isn’t it kind of hypocritical to say gambling is illegal, but still legalize gambling on a few select sports such as horse racing and rummy? This is a classic example of the contradictory gambling laws of India. The government should be consistent in its policy and legalize gambling on all sports throughout India.

When will gambling be fully legalised in India?

The Indian Government is perfectly aware that many citizens are engaged in online gambling and if they wanted to illegal, they would have amended the current law to include the prohibition of online gambling. This has never been done, which means that online gambling continues to be legal in India to this day.

Now the government of India and many state governments are debating whether to legalize gambling in India completely. We believe that this would be a very smart thing to do. It would allow the government of India to collect taxes on the enormous online gambling industry. Citizens donating all this tax money to foreign governments.

It would help the Indian people feel more comfortable with online gambling. Knowing that not only legal, but also sanctioned and regulated by the federal government of India.

Please note that the information found on this page does not constitute legal advice.

Frequently Asked Questions about Indian Gambling Laws

Is it legal to gamble in India?

Do I risk anything by gambling in India?

In our opinion, no. According to some of the top legal experts in India. They do not know anyone who has been prosecuted or convicted for online gambling ever.

Best Casino Sites In India