Legal Gambling In India Online
Update:Pokerstars is already said to be eyeing the country and have begun marketing efforts for play money Indian players by using Diwali.
Yes. This is one of the most commonly asked questions from bettors in India, but also from operators looking to tap into the 1.25 billion people and the largest growing middle class. As with all legal questions it is difficult to answer as India believes gambling to be “taboo” and many legalities and loopholes exist. Indian states are also actively seeking to legalize the gambling business. Let me give you a break down of the laws that have occurred over the latest years. First, if you just want a site then look below.
Where Indians Bet Online
BET365.com – This is the main destination for punters from India who want to bet online. They have been successful in this small market because they allow you to bet with Rupees, and offer other methods to fund your account legally. It’s also probably the safest bookmaker out of the UK to service India. Before betting, we recommend you familiarize yourself with the most simple cricket betting strategies as it is the most bet on sport in India.
Federal Information Technology Rules
This was the most recently introduced law by Indian government. As you can see by the title, it covers a vast array of anything on the internet in which they consider to be either illegal or taboo. Please note, there were no laws that actually made it illegal to allow online gambling by the states of India. Ok, so this FIT Act basically says if something is illegal or taboo the Internet Provider (ISP) must block such site. Can anyone say China? This type of censorship simply doesn’t work and hasn’t scared away people from India from betting online. They did the same in China and other Asian countries and it didn’t work which is why the USA uses different tactics to block betting so I’m not sure what they’re trying to accomplish.
The amendment has provided a legal framework for online gaming in India. This is groundbreaking in India, as at the time, no other State has been able to achieve the same feat. With this, Sikkim is the only Indian state who may legally control and regulate online gaming through electronic and non-electronic formats and impose taxes on the same. The main way that India has tried to stop online sports gambling is by restricting the banking methods that you can use. For instance, the Bank of India has blocked the use of the VISA or MasterCard credit cards from being used to deposit money into online bookmakers.
Let’s go a little more in depth to this law.
- Gambling: Firstly it says “gambling” is illegal and therefore should be blocked. Gambling is the act of wagering on something where the outcome is uncertain, or is not a game of skill. Well the word gambling covers just about everything you place a bet on and many forms of gambling are skill.
- Poker: Ok so now we have to look at poker. It has been proven by many professionals and gaming experts that poker is in fact skill. There is no such evidence proving otherwise but many governments simply turn the other way and put online poker into “gambling”. Poker is skill, and skill games are NOT illegal in India.
- Sports: Online betting on sports can also be singled out. Sports bettors all over the world make a living on sports betting. Some people have it down to such a science that bookies won’t even take their bet, or because the bettors are so good they can actually change the odds by how much they wager! Sportsbetting is skill, therefore, should it be covered under “gambling”?
- Casino: Online casino games are one form where it can actually be considered gambling. Fortunately, for the way India’s laws are written it gives states the ability to allow what they want. This is why you see Sikkim offering games online such as horse betting and online lotteries.
Skill or Gambling; Anything we do in life can be based on luck or skill. As the saying goes, “you prepare yourself to get lucky”. Governments who preach that something is gambling or skill simply need to quit that as it leaves too much left for interpretation. If they want everything to be black and white they need to say ok, poker is skill, casinos (per game) are not and so on. Either way it is up to the states so this newly imposed website blocking will fail, there are too many ways around it.
The Public Gambling Act of 1867
That’s right my fellow Indians, we still have government trying to impose laws on us that happened before online betting even existed. The internet was no where near being invented when this law was passed, and yet many government officials try to point to it and say, hey look here, we DO have laws that make online betting illegal. False. Let me reiterate again, this is a Federal law and Sikkim allowed online betting after and during those past years. IT IS UP TO THE STATES, not outdated laws!
The Government Wants Legal Online Betting
Firstly, the government says they want legal online betting in India because it would curb corruption with illegal bookies that have supposedly used match fixing to fund terrorism and crime. While this was the case, it is simply a front to put forth online gambling so that they can tax the heck out of it. The Internet Cricket Council (ICC) has been urging India to allow offshore companies such as those located in the UK to partner up with casinos in India to get a proper form of internet wagering in place. This is the complete opposite of the USA and the National Football League’s views which strictly want betting banned. This would allow for taxes to be collected, a watchdog for suspicious actives, and lastly allow India’s punters to do what they already do…. to the sum of 8,000 Lakh Rupees.
Funding Option Laws To Consider (FOREX LAW)
There is a law in India that says it is illegal to fund online gambling sites without using Rupees. This law is called the Foreign Exchange Management Act. If you are to place a bet at an online bookmaker or gaming site you need to do so in Rupees. Only a few sites take Rupees in which you can fund and withdraw via the same currency so most players from India simply choose to use and electronic wallet. Examples of the most popular ones are Moneybookers, Paypal, and Neteller.
Unless an online betting site specifically blocks players from India, which is pretty rare, you can pretty much play anywhere you want. This puts this law out of business so to speak and for most it’s not an issue! The only thing gamblers from India have to worry about is if the major bookies or betting sites decide they have to leave India in order to get a full fledged license to advertise and operate in India in the future once it is completely regulated and legal.
Conclusion on Online Gambling Laws in India
As you can see there are too many holes in the governmental India betting laws. With a growing middle class, a huge population, and surrounding casino giants looking to make a stand in India it is only a matter of time before online licenses are given out to betting firms offshore to fully allow online betting in India (not that it doesn’t go on now)! For continued updates please following our sister site at www.onlinebetting.in or begin betting at Bet365.com.
Author: Raj Patel (6 year Indian gaming author)
Copyright 2017
Gambling is one of the most heavily regulated industries in the world due to several legal and moral issues surrounding it.
Gambling laws differ from country to country and what may be completely legal in one jurisdiction may be outright prohibited in another.
India is an irresistible market for betting and gambling sites due to its large population and a culture of sports betting and gambling.
India has detailed laws regulating gambling and casinos, although, like many other similar countries, there is a lack of clear guidelines on the legality or illegality of online casinos.
This is understandable as still many countries are struggling when it comes to regulating business or commerce over the Internet and online casinos further complicate things for the governments involved.
So, as of today, there is no easy answer to the question: are online casinos legal in India or not.
Nonetheless, some of the largest online casinos are waiting for things to become a bit easier as this will allow them to establish a presence in India, which has an annual gambling market of around $60 billion.
We’ll closely examine this issue in this article and discuss various laws and regulations concerning gambling in India.
Legislation In India
In India, both the federal government and provincial governments can make laws in specific areas as outlined in the constitution.
In some of these areas, both have the power to make laws and legislate an activity. Gambling is one such subject where both the provinces and the federal government have the power to legislate by making new laws.
On an overall basis, Gambling in India is governed by the Public Gambling Act of 1867, drafted when India was a British colony.
This Act, still in force outlaws all sort of gambling and betting activities, making any type of gambling illegal and punishable by law.
As this act was passed in 1867, way before modern computers or the Internet, so it says nothing about online casinos.
Indian Information Technology Act of 2000, prohibits publication or transmission of information which can corrupt people, this also includes gambling, although the vague language of this Act means there is not much said about gambling or online gambling to be specific in this act.
India has several provinces which are known as “States”, these states can make their own laws regarding gambling as explained above.
Just 4 states of India allow gambling including Goa, Daman, Nagaland, and Sikkim. Even these states don’t have specific laws concerning online casinos.
Gambling is regulated at both the federal and provincial level in India and many states have adopted the federal law in its entirety or after some modifications.
Is Online Gambling Legal In India
Almost none of these laws other than the ones passed by the Indian state of Sikkim discuss online gambling or online casinos in any way.
Sikkim tried to auction 3 online casino licenses but due to a lack of interest from bidders, they had to drop this plan. Since then, no other Indian state has shown any interest in making online casinos legal within their territory by passing legislation.
Since then, no other Indian state has shown any interest in making online casinos legal within their territory by passing legislation.
Another thing to consider is the problem faced by Indian residents when it comes to depositing funds in an online casino as, like the US, Indian banks are not going to approve such a transfer.
This means that effectively Indian users can’t use most MasterCard or Visa Debit or credit cards issued by their banks for funding their online casino accounts as such transactions are declined by the bank.
Most casino players have invented several workouts around this issue by using eWallets such as Neteller, Skrill and some have also shifted to cryptocurrencies in recent years which include Bitcoin, Litecoin and Ethereum.
Legal Regulation Of Online Gambling
So, effectively there is almost a void in terms of legislation when it comes to online gambling, as India doesn’t have a single law prohibiting or allowing online casinos.
Due to the prohibition of gambling by above-mentioned laws including Information Technology Act 2000, there are no online casinos in India.
Foreign online casinos including some of the most well-known brands such as Bet365, William Hill, Ladbrokes etc. are aware of this situation and have actively taken the advantage of the fact that there is no local competition in the Indian market.
These websites accept Indian players from most states as they have nothing to lose, being based in other jurisdictions.
Indian government cannot do much to prevent these casinos from operating in India other than blocking their websites, a step which they have considered numerous times but haven’t yet taken.
Legal Loophole
Existing Indian laws, apply to all the residents of India, including the physical and legal persons and this includes the law concerning gambling and online casinos.
Due to the current legislation in India, a situation has arisen where it’s not clear whether online casinos are legal or illegal in the country.
When it comes to online casinos, it’d be safe to assume that we are in a grey zone here as there is no such thing as black and white.
Online casinos have shown shrewdness in taking advantage of this fact and have quickly filled the void created by a lack of local online casinos.
Foreign online casinos accept all types of players from India, who can play almost every game offered by these casinos in their online casino section without any hurdle.
Indian banks don’t process transactions for online gambling, but the players regularly use eWallets and cryptocurrencies such as Bitcoin to overcome this hurdle.
Conclusion
So, it’d be safe to assume that as of today online casinos are neither banned nor allowed.
The concern, are online casinos legal in India is still a vague one but what we do know is that there are online casinos that cater to Indian players.
Online Legal Gambling Sites In India
Since no Indian law concerning gambling ever mentions the status of a foreign casino offering its services to customers in India via the Internet.
Legal Gambling In India online, free
As outlined above, foreign casinos have taken note of this legal loophole and the large players in the online casino industry have been accepting Indian clients from all parts of India without any restriction for many years now.
Online Gambling Legal In India
The good news is that there are fantastic bookmakers such as Bet365 which offer the top tables and online casino games around.
Therefore, if you find yourself placing a bet from India you can rest assured that you will find an online casino to take your bet!