Gambling Laws and Regulations In India

The general consensus by millions of Indians is that gambling is banned throughout the country. If you ask them to share information about the gambling laws and regulations in India, they will not be in a position to do so because a lot of them don’t know where to find information relating to gambling laws and regulations.

Some of them know where to look but find it too time-consuming and confusing to read legal jargon and interpret what it means for them. Thus they are content to accept the general consensus that gambling is banned in India and any form of gambling that takes place is illegal gambling.

BettingGuru wanted to bring more light to gambling laws and regulations in India, so our team of experts has researched and studied Indian gambling laws and simplified them into modern day language that makes it easy for everybody to understand them clearly.

The Public Gambling Act of 1867

The Public Gambling Act of 1867 prevents casinos and gambling houses from operating in India. If a company or a business if found violating this law, they will be subject to a fine of ₹200 or go to prison for a period of 3 months.

The law is also applicable to players who visit these illegal gambling establishments. If they are found inside these illegal establishments, they will be subject to a fine of ₹100 or face prison for a period of 1 month.

Gambling advocates have tried for years to get the central government to review the Public Gambling Act of 1867 and amend it so that it is appropriate for the times that we now live in. However, legislators have been reluctant to review this gambling act and make changes for a number of reasons.

The most sensitive reason for not meddling with the Public Gambling Act of 1867 is because gambling is considered taboo in India and offensive to multiple religions. Since India is a very religious nation, the ruling party wants to make sure that it does not offend the religious feelings of millions of Indians as it could end up hurting their vote bank.

Some of the other reasons for sticking with the Public Gambling Act of 1867 include considering gambling a social evil and forbidding players to engage with games of chance.

State Legislation

While the Public Gambling Act of 1867 governs gambling throughout the country, each state has the authority to form their own legislation and legalize gambling. This is why Goa, Daman and Sikkim have a legalized gambling market.

There are a number of states including Mumbai and Kerala who are considering legalize gambling in their respective states. State governments have realized that legalizing gambling would create a very lucrative industry as it would generate employment opportunities, bring in huge financial investment, increase tourism numbers and provide a steady stream of gambling taxes for the state coffers.

Nagaland, a small state in the north-east of India decided that it would pass a new law that would allow online games to be legalized. Bettors are allowed to place bets on online casino games as long as they fall under the category of games of skills. The Nagaland Prohibition of Gaming and Promotion and Regulation of Online Games of Skill Act, 2016 (Gaming Act) updated the terms and conditions for games of skill and games of chance – thereby opening a new stream of revenue in the state.

For land based or online gambling to spread throughout India, it will require one of the four big states to make a decision and pave the way for the rest of India. Maharashtra, Karnataka, Tamil Nadu and Delhi have toyed with the idea but have put it on the back burner for now.

The Information Technology Act, 2000

The Information Technology Act 2000 is a central act that governs all online activities in India. The Act does not specifically use the word gambling or betting and hence a number of iGaming providers have entered the market due to the language used in the Act. The language allows both pro-gambling and anti-gambling groups to interpret this law based on their own assumptions.

The Supreme Court was approached to make a decision and bring clarity to the language used in the ACT but the Court decided to pass on the matter. So the decision is now left to individual states to determine whether they want to allow online casino games and betting or not.

The state of Maharashtra took the decision to pass its own gambling legislation to clear things up. The “Bombay Wager Act” was passed and it specifically stated that online gambling is an offense in the state.

If a company is caught offering online gambling services in India, they will slapped with a fine of 90,000 rupees. This rule has been in place since 2009.

The Legal Status For Games Like Poker And Rummy

Since each individual state has the option to legalize or ban land based and online gambling, there is some confusion as to what games are allowed and which states allow them. Some of the common questions of Indian players include: is rummy legal in India, is cricket betting legal in India, is poker legal in India, is sports betting legal in India and are online casino games legal in India.

We decided to put together a quick overview to help you understand what games you can play and in which states you can play them:

• Casino games are allowed in Goa, Daman, Sikkim
• Poker is permitted in Karnataka, West Bengal, Nagaland
• Fantasy sports betting is permitted in most states as they are viewed as games of skill
• Lottery is banned in most states but a few states have a state wide lottery such as Sikkim. Punjab has a licensed online lottery.

Online casino games and online sports betting are permitted as long as players are betting at offshore casinos who allow players to deposit and withdraw funds in Indian rupees.

A New Online Gambling Bill on the Horizon

While India’s gambling laws have largely remained unchanged for some time, a new gambling bill was introduced in April 2022 that will help to regulate the online gambling industry. Over the past few years, the number of Indian players signing up to offshore accounts has multiplied, and the government are keen to update its laws to protect players.

The bill was introduced by MP Dean Kuriakose, a member of the Lok Sabha. His idea is to introduce regulations that prevent unlicensed gambling platforms from taking advantage of players, regulating both the real money gambling and real money gaming markets. While the bill no doubt has some positives, it could also negatively affect gamblers.

Some of the benefits of the bill include ensuring that all sites offer responsible gambling tools, establishing strict marketing guidelines, proving fairness, and paying proper tax rates. This will help to make the industry safer while also bringing new jobs for Indian people and ensuring that money spent on gambling stays within the country.

Critics of the bill have stated that it needs more work to separate online gambling and gaming. In addition, the bill would make playing at offshore gambling platforms illegal, potentially putting players at risk for using them. This can have the effect of punishing players rather than the platforms themselves, while effective regulations should always focus on providing a safe and legal alternative first.

It’s important to note that this bill hasn’t passed yet, but it shows that the Indian government is at least considering the process of full online gambling regulation. There’s no way to know how the future of Indian gambling will look, but hopefully, the MPs will look to other countries that have successfully implemented safe and legal gambling when signing any bills into law.