4/7/2022

Betting Laws In India

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The Indian gambling industry is governed by The Public Gambling Act of 1867 and pro-gambling groups are pushing for legislators to change this law. The Information Technology Act 2000 regulates online websites in India but does not specifically use the word gambling or betting in its list of prohibited sites. 432 Likes, 4 Comments - George Mason University GMU (@georgemasonu) on Instagram: “'As a freshman at Mason, I had difficulties being on my own for the first time.

Online gambling is allowed throughout most of India, but it’s not fully regulated in most states.

Sikkim is actively pursuing a regulated online gambling framework, and three other states have prohibited gambling online.

Those three states are Telangana, Andhra Pradesh, and Maharashtra. While online gambling is deemed illegal, no one has been charged with any offenses to date.

Gambling is a state-level governance issue in India, so the legality of various betting and gaming activities depends on which state you are in. However, there are a few federal laws that also affect gambling, both online and in-person.

We explain all about India’s gambling legislation on this page. Let’s start by looking at the big picture of India gambling laws.

Federal Gambling Legislation in India

There are three federal laws in India that affect gambling, but only one is about the act of gambling itself.

The other two laws affect online gambling because they govern online financial transactions.

Here is more information about each of these federal laws.

The most prominent of the federal gambling laws in India is the Public Gambling Act.

When the Public Gambling Act was passed, it only applied to the ten states that were still under British control at that time. Today, it applies to any state that does not have its own casino and betting laws.

According to the Public Gambling Act, it is illegal to operate a gambling house or be present inside one. The act goes on to define a gambling house and acts of gaming.

Betting Laws In India

However, there was a notable exception. Section 12 of the Public Gambling Act states that skill-based games are not considered gambling.

“Act not to apply to certain games. Nothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill wherever played.”

Unfortunately, the definition of a skill-based game is equally unclear. Several court cases have been brought before India’s court system to determine whether a specific game is considered a game of skill or chance.

In Dr. R. K. Lakshmanan v. State of Tamil Nadu [AIR 1996 SC 1153], India’s Supreme Court ruled that the predominant factor, either chance or skill, will determine whether a game counts as gambling.

That court case determined that horse racing is a skill-based game, so India betting laws allow for legal horse race betting throughout the country.

It is surprising that the Supreme Court ruled that the predominant factor can determine whether a game is based on skill or chance. That seems to contradict India’s Constitution, which defines gambling as follows.

“Any activity or undertaking whose determination is controlled or influenced by chance or accident or any activity or undertaking which is entered into or undertaken with consciousness of the risk of winning or losing.”

An earlier case (State of Andhra Pradesh v K. Satyanarayana and Ors [AIR 1968 SC 825]) ruled that rummy is also a game of skill.

There have been a few amendments to the Public Gambling Act in more recent years. In 1970, the definition of gaming was updated to include “wagering or betting but does not include a lottery.”

After continued confusion about the legality of lotteries, India passed the Lotteries Regulation Act in 1998.

This federal law gave states the right to create their own lottery regulations. The only rule is that lottery drawings cannot occur more than once per week.

Because the Public Gambling Act got passed in 1867, it was enacted long before internet gambling was even a figment of the imagination.

There are no references to online gambling, and it is unclear whether online casino sites would be considered a gambling house under India gambling laws.

Another federal law that affects the legality of online gambling in India is the Foreign Exchange Management Act (FEMA), which got passed in 1999. It is a financial act that centers around international trade and currency exchange.

Most of the Foreign Exchange Management Act does not apply to individual people or is unrelated to gambling. So, we will only focus on the one part that does apply to legal online gambling in India.

If you deposit money into an online gambling account in a currency other than Indian rupees, that could be considered an illegal way of exchanging currency.

Online gambling sites have two options that help customers enjoy their services without violating FEMA.

The first option is to accept transactions in rupees. But, accepting the currency does not force you to process transactions with it.

So, online casinos and betting sites may use geolocation software to determine your location. They can restrict transactions that begin in India so that they can only be conducted in rupees.

That option works, but it adds unnecessary work for both the site and the gamblers.

Most online gambling websites choose the second option, which is to advise gamblers from India to use electronic wallet payments instead of credit or debit cards.

Electronic wallets have different foreign exchange rules, so the gambling site can process your payment, no matter what currency it is, without violating FEMA. They also make processing transactions incredibly easy for customers.

If you are gambling online in India, you may have limited access to banking methods. That is because of the Foreign Exchange Management Act.

Keep that in mind when you are looking for an online casino or betting site.

The last of the Indian gambling laws at the federal level is the Information Technology Act of 2000. It is a broad law that applies to almost any type of online activity.

There is nothing in the Information Technology Act that implies that online gambling in India is illegal. In fact, the law does not even mention gambling in particular.

However, there is a provision that gives the Indian government the right to block foreign websites as it deems necessary.

The government can require internet service providers to block access to certain websites, and it has already done so for some online gambling sites.

It is not clear why specific sites have been blocked or if they will become available again.

You will want to be aware of this possibility when you are gambling online in India, especially if you are using an unlicensed site.

India Gambling Laws By State

State online gambling laws supersede federal gambling laws in India. If you are in a state that does not have any gambling legislation, the Public Gambling Act will apply.

Those of you who happen to be in one of these states will have different betting and gaming legislation that you should know about.

Most gambling laws prohibit either prohibit the activity entirely or regulate and legalize gambling. The Nagaland Prohibition of Gambling Act takes a different approach to online gambling in India.

It prohibits all online gambling where chance outweighs skill. But it offers licenses to companies that want to offer online games of skill, including poker and rummy.

The act is even more interesting because it is a licensing act. Nagaland’s Finance Commissioner oversees licensing, and according to the law, any corporation in India can apply for a license.

That is particularly interesting because it implies that a corporation that receives a license from Nagaland would be able to legally offer its services to other states in India.

However, the law does stipulate that those corporations cannot operate in a state that explicitly outlaws games of skill.

Both the corporation and its technology servers must be located in India to qualify for a skill-based gaming license from Nagaland.

Foreign operators that already offer online casinos or poker sites do not meet those requirements, so they will not get approved for a Nagaland gaming license.

Another stipulation also specifies that corporations that offer games of chance are not eligible for the skill-based gaming license. So, online casino operators do not qualify for a license unless they only offer poker.

The benefit of having state-licensed online poker sites is that Nagaland would audit the companies to ensure that they are operating fair games and protecting customers’ interests.

Nagaland’s Gambling Act is unique, and it could be an excellent way to bring regulated poker to India.

However, there are so many foreign operators that already provide poker to India’s players without a license.

These companies are unwilling to give up their casino games to qualify for a license, mainly because they have been allowed to operate without one.

Sikkim is one of the most progressive states in India as far as gambling legislation is concerned. The state has legalized brick-and-mortar casinos and created a regulated online gambling industry.

In 2008, Sikkim passed its casino licensing act, and the state’s first land-based casino opened in 2009. By 2010, they started accepting applications for three online casino licenses.

The state’s location affected their decision to create a casino industry. Sikkim is a small state that is located in the northern part of India between Nepal and Bhutan.

Before 2009, many Indian gamblers traveled through Sikkim to get to casinos in Nepal. The state wanted to keep that revenue in the country, so they authorized land-based casinos in five-star hotels.

Adding two land-based hotel-casinos was an excellent way to support Sikkim’s tourism industry. The state is popular with travelers who come to see the beautiful Himalayan mountains.

Most of the casinos’ customers are tourists, but Sikkim residents also appreciate the convenience of having two casinos available.

Sikkim authorized online gambling beginning in 2010. Several casino operators applied for a license, including William Hill and Betfair.

Three of those companies received a provisional license that would allow them to start operating online casinos as soon as they paid their fees. Ten additional companies received letters of intent.

However, none of these companies ever launched a casino website in Sikkim. The one online gambling site in Sikkim is PlayWin, which only offers online lottery sales.

They may have decided it wasn’t worth competing with illegal bookmakers. Still, the most probable reason is that Sikkim’s small population was not lucrative enough to justify the cost of the licensing fees and taxes.

When the Sikkim Casinos Act was initially passed, it included language that implied that licensed casino operators would be able to offer their services throughout India,

Betting

The federal government stepped in and informed Sikkim’s officials that they did not have the authority to authorize legal gambling in India as a whole.

Once those casino operators realized that their customers would be limited to the 619,000 people living in Sikkim, they knew that they would probably not get enough players to make their efforts profitable.

Sikkim has the most progressive online gambling legislation in India, but it doesn’t benefit anyone because there are not enough players to attract the largest casino operators.

Another state that legalized land-based casinos in five-star hotels is Goa. It is a small state on the Western coast of India and is popular with beach travelers who want to visit the Arabian Sea.

Goa wanted to increase tourism revenue in the early 2000s, and their first step was to pass casino laws. The first land-based casino opened in 1999, and for a while, it seemed like the state would only allow one casino to operate.

In 2007, the state’s government announced that it would create several more casino licenses. Today, there are eight casinos on land and five casino cruises that operate on the Mandovi River.

All of Goa’s casinos charge an entry fee, ranging from 700 rupees up to 6000 rupees. Some casinos charge the same entry fee all the time, while others raise the price on weekends or during peak seasons.

The entry fees cover the cost of unlimited alcoholic beverages and food at most casinos. Some casinos offer a voucher worth 500 or 1000 rupees to use on any of their games.

CasinoLocationEntry Fee
Chances CasinoVainguinim Valley Goa750-2000 rupees
Casino CarnivalGoa Marriott Resort1500-2000 rupees
Casino StrikeGrand Hyatt Resort2000-2500 rupees
Dunes CasinoZuri White Sands Resort700 rupees
Casino ParadiseNeo Majestic Hotel1000 rupees
Casino PalmsLa Calypso Hotel1000 rupees
Crown CasinoCrown Hotel1000 rupees
Deltin SuitesDeltin Suites Hotel in Bardez2000 rupees
Deltin RoyalePanjim2000-3000 rupees
Deltin JaqkPanjim1500 rupees
Majestic PridePanji2000-3500 rupees

A few states have prohibited online gambling within their borders. Telangana was the first state to pass such a law in 2017. Andhra Pradesh and Tamil Nadi both followed in 2020.

There was a specific incident in Andhra Pradesh that prompted lawmakers to prohibit online gambling.

A young man committed suicide because of stress related to unpaid debts that he had accrued while gambling online.

After that incident, the state government decided that online gambling was too dangerous because it attracted a younger crowd of gamblers. They passed their law prohibiting it in September 2020.

The laws in all three of these states are remarkably similar. They all make it illegal to gamble online in almost any form, including sports betting, lottery sales, and even rummy.

If you get caught gambling online in any of these states, you could face up to six months in jail and a 5,000 rupee fine for your first offense. The consequences can go as high as two years in jail and 10,000 rupees for operators and repeat offenders.

It is challenging for law enforcement to enforce online gambling laws. They do not have the tools and resources to track everyone’s activity on the computer and smartphone all the time.

Sports Betting Laws In India

Andhra Pradesh is attempting to get around this issue by convincing the Indian government to act on the Information Technology Act.

They have asked the government to shut down more than 132 betting sites by forcing internet service providers to block these websites in the state.

Chief Minister Reddy says that anyone who assists online gambling sites in their operation can be held liable for violating Andhra Pradesh’s Gaming Act. This includes service providers that do not block access to online casinos and betting sites.

If you happen to live in Telangana, Andhra Pradesh, or Tamil Nadu, you may want to exercise caution when using online gambling sites.

But it seems clear that the government officials are more interested in punishing the casino operators and internet service providers than individual players.

The federal and state gambling laws in India that we have looked at already focus on casino games, in particular. However, the definition in the Public Gambling Act of 1867 also includes sports wagering.

There are two main exceptions to India’s gambling laws.

Horse racing is legal throughout India, and there are several live racetracks throughout the country. It is legal to bet on these races, and they have on-site bookmakers available. They also have off-track betting facilities.

Betting on horse races is legal in India because it is considered a game of skill. The Public Gambling Act of 1867 exempts skill-based games from the definition of gambling.

The Supreme Court ruled that horse race betting is a game of skill in Dr. R. K. Lakshmanan v. State of Tamil Nadu. That case was not decided until 1996, but horse race betting has been going on for much longer.

Another form of legal gambling in India is the lottery. The Lotteries Regulation Act of 1998 gave each state the right to authorize lotteries if they choose to. There are some rules, including a once-per-week limit for draw games.

Horse race betting and lotteries are the only two legal forms of gambling in India. All casino games fall under the Public Gambling Act.

Many people wonder if it is legal to use online gambling sites that operate in countries outside of India.

There are dozens of online casinos and sports betting sites that accept bets from players in India.

Most of these sites are licensed and regulated in other countries, so they are operated legally.

None of the federal gambling laws in India prevent overseas sites from operating and accepting players from India.

Players do need to be mindful of processing financial transactions with foreign sites. You need to handle all transactions in rupees instead of a foreign currency or use an electronic wallet instead.

If an online casino accepts credit card deposits in a different currency, they would be violating India’s Foreign Exchange laws.

Anyone in India can access and use these sites. However, three states have explicitly prohibited online gambling.

You could potentially face criminal charges in these states, but the government is more focused on pressing charges against the operators than individual players.

As long as you are aware of the potential risks and the foreign currency laws, you should be able to continue using overseas gambling sites without concern.

History of Gambling Laws in India

India is certainly not as significant as gambling destinations like Las Vegas and Macau. The country’s modern gambling industry is disappointing compared to what you can find in those cities.

But that was not always the case. Some of the earliest records of gambling come from India, and some of the games we are familiar with originated there.

The Vedic religion, a precursor of modern-day Hinduism, dominated India for centuries. Two prophets realized that the wisdom of the Vedas was not accessible for ordinary people.

They created two ancient Sanskrit texts, known as The Ramayana and The Mahabharata. Both of these epic stories contain some of the earliest known references to gambling.

The Ramayana refers to games of chances, including gambling boards and dice games. These references are believed to date back to 7300 B.C.E., and scholars believe the boards were used to play an early version of chess.

By the 15th century, gambling was a prominent activity throughout India. It was a well-regulated industry, with rules about fairness that gambling houses had to follow.

The first examples of a gambling tax were also created around the same time. Indian kings and officials enforced gambling house rules so that the patrons would be willing to pay these taxes.

In the 18th century, the British colonizers brought cricket to India, and it quickly became one of the most popular sports in the country. The rise of cricket also increased the interest in sports betting options.

Britain soon realized that gambling was rampant in India. They attempted to control it by creating the Public Gambling Act in 1867.

That law continues to govern gambling in India as a whole, but the Constitution also gave states the right to create their own laws for betting and gaming.

Indiana

Here is a timeline of gambling legislation in India.

1947India gains independence from Britain.
1976The Goa, Daman, and Diu Public Gambling Act, passed, allowing for punishment for gambling.
1992The Goa Gambling Act was amended to allow for slot machines in five-star hotels.
1996Further amendments to the Goa Gambling Act allowed table games so that five-star casinos could operate full casinos.

Cricket Betting Laws In India

1996Supreme Court Case: R. K. Lakshmanan v. State of Tamil Nadu rules that horse race betting is a skill-based game.
1999The first Indian casino opens in Goa.
2007Goa expands the number of casino licenses and authorizes riverboat casinos on the Mandovi River.
2008Sikkim passes the Sikkim Gambling Act to authorize casinos.
2010Sikkim begins accepting applications for online gambling licenses.
2016Nagaland Gambling Act passes, allowing online skill-based games, including poker.
2020Andhara Pradesh and Tamil Nadu prohibit online gambling.

If you live in India, or you are planning a vacation there, you need to know how India gambling laws will affect your opportunities.

There are plenty of land-based casino options in Goa, and two more casinos are available in Sikkim. If playing casino games is a significant part of your vacation plans, you should choose one of these two tourist destinations to visit.

When you can’t make it to one of those land-based casinos, you can gamble online. Using an overseas online casino or betting site is safer than interacting with a black market bookmaker.

There are a few states that prohibit online gambling. If you are in one of those states, you should be aware of the potential risks of using one of those sites. You may want to consult with an attorney to be sure.

Your best option for a wide variety of gambling options, including casino games and sports betting, is to use one of the online sites we recommended

Do you know what exactly sports betting is? Is sports betting legal in India? What good or bad forms of laws & economics are attached to sports betting in India? Let’s start, but before you ask for much – sports betting is mostly illegal but there are some catches. Read on to learn.

First of all, sports, like cricket, have a special place in the hearts of Indians. And so does the game of betting. Betting is mainstream in India. Not just in sports, gambling has its own ways for its existence in the corner of some street, at homes or at any public gathering. From penny-stakes gambling to underground betting, it’s all in there.

Betting has been a big billion-dollar industry which is mostly illegal. Talking about how legal sports betting in India is, let us take a deeper look into it.

Is Sports Betting in India Legal or Illegal?

Gambling is for Asia.

Many countries in Asia use their legal gambling sources like casinos, to be more specific, to attract tourists. That is a big part of their revenue system.

Countries like Singapore are setting the level of inspiration for others to go for it. South Korea, Sri Lanka to Philippines, are all into maintaining similar gambling places.

India, on the other hand, is still playing with their laws. According to the Public Gambling Act, 1867, a law even older than Mahatma Gandhi still rules, owning the operations of any gambling house, entering a gambling place, or having a gambling device is prohibited.

It does have an exception, though.

To be more specific, there are two games in sports betting,

  • the game of skills
  • the game of chance

The ‘game of skills’ is simply the fantasy gaming arena where you can play using your skills and intelligence, Dream11, Rummy, Horse betting, online poker, IPL Predictions being some examples. The games of skill require your skill and knowledge. And this is supported by the government.

According to the law, if a game can be affected by the knowledge and skills of a player then it is legal. Fantasy sports like rummy and horse racing are legal in India.

Meanwhile, the ‘game of chance’ is stated to be affected by the luck of the person playing. This is illegal, according to the legislation.

It does seem to be an issue handled by the central government, but is rather governed by the state legislations. So that means, all states can make their own rules and regulations depending upon their scenarios.

Of course, almost every state has made the skill over chance ratio a prohibition, but as you say, exceptions are everywhere. According to the Goa, Daman and Diu Gambling Act, 1976 [pdf link], casinos and other games of chance are permitted. Similarly, in Sikkim, Telangana and Assam, there aren’t specific restrictions.

There is a penalty and imprisonment under the gambling acts of other states, but this variation in laws does not seem to support the prohibition altogether and hence, somewhere, supporting it all.

The Motivation

Talking about the sources that forces Indians into gambling and sports betting, India has a societal factor. It is in the culture of some community to gamble. The festival, Diwali, is meant as the festival of lights and gambling. It is just one factor. Some are more characteristic.

People agree that their loneliness is a factor that they put themselves into gambling and sports betting.

Betting on matches gives them the opportunity to have conversation and connection with new people. Some take sports betting to get rid of their tiring routines. This psychological factor draws sports betting to a different level.

Adrenaline rush is yet another kind of psychological factor. The uncertainty of winning a bet makes some people get an adrenaline rush, they start putting higher capital into risk.

Betting Laws In Indiana

Extreme cases, as you must have found irrational, is an outcome of this thrill-derived mentality of a few bettors.

They keep this illegal business going. Some bettors ‘bet’ on the fact that after putting money on some match, even the most boring part of the game becomes so interesting and thrilling. This is the reason half if the times, which encourages them into betting.

26+ Best Indian Online Casinos to try your luck

Are you ready to play on the best online casinos in India? There are several Indian online casinos online to try your luck and earn easy bucks. Most of the people throughout the world enjoy online gambling of different types and Indians are no exception.

But the main reason is the monetary factor that motivates most of the betting and gambling business.

Spending money to earn money still tops the chart.

Due to the perception that betting can end up in a quicker earning of money, it tempts more and more people. They keep on losing money and still bet to recover the losses from the betting. That is how this industry works even after the prohibitions are put on it.

It is not new for anyone. Everybody, especially the vulnerable, has access to it through the news and the celebrity support it gets. How?

The biggest news story, which questioned the loyalty of many cricket celebrities to their game, came out in the year 2013.

The Indian Premier League spot fixing and betting case where Delhi police found S. Sreesanth, Ajit Chandila and Ankeet Chavan guilty in connection with a bookie, were suspended and faced a ban from cricket.

Again in 2015, the IPL superstars Chennai Super Kings and Rajasthan Royals were given a two-year ban from the Indian Premier League by Board of Cricket Council of India (BCCI). The team members were accused of betting and corruption.

The Indian Premier League (IPL) is a celebratory series where cricketers from almost all of the country’s teams unite and play. The money it legally requires to host such an event every year is minus the money which involves underground betting.

While cricket betting is the top-most source of gambling in India, the IPL tops everything in this category. An estimate says that one international cricket match can raise up to 200 million dollars in a day. There are many other options to do sports betting, as suggested by sporting pedia. Football, Kabaddi, Hockey etc. like sports are getting wide attention in India. In upcoming years every other sport will come in the purview of betting.

Why is Sports Betting Unhealthy?

Not bluffing, but, there has been no ban on online betting operated from outside India. This loophole has been perfectly utilized the offshore betting companies by giving betting freaks a platform. And websites in India has been hooked up to these offshore websites to make it much easier.

Example given: indiabet.com. This advisory website told a newspaper that they don’t claim to do sports betting but help the bettors get in touch with the betting websites. Go to the link they provide, register and bet on the match you like.

Sports betting is not just betting on the winning or the losing team, it is about everything that happens in the match. If cricket, it may include betting on the toss win, what the captain will choose for, the catch drop, misfields, strokes and what not. There is no question how it arose to this extent. But it is unhealthy, even after all this income and popularity. The reasons include a lot.

The government cannot successfully track all the resources from where the money is bet and hence sometimes it ends into a black market. Where almost all of the underground sports betting is illegal, there is no concept of government putting tax on it. This can be a big chance for India to grab huge revenues from this big income.

As already mentioned above, betting corrupts the sport. Moreover, it corrupts the finances of Indians, when they end up putting everything into betting and gambling. They are least productive and henceforth, a threat to the economy of nation.

What holds in future for sports betting?

It is not easy to make the gambling and the underground sports betting totally legal, it might affect the citizens’ livelihood and the society. The least specific laws and the taste of gambling have made it more easy and likely to bet into the sports. The fact that it is not guilty and money for money is not wrong, sports betting has been into India having deep significance. Obviously, it is not easy to eradicate it too easily, it is so mainstream. The above mentioned were the main reasons why sports betting has made its position tightly glued as the gambling practices in the country.

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