Authors: Ranjana Adhikari, Sarthak Doshi, Shashi Shekhar Misra
ICLG – Gambling Laws and Regulations – India Chapter
This chapter covers common issues in gambling laws and regulations, including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement, and liability.
Published: 28/11/2023
Chapter Content
- Relevant Authorities and Legislation
- Application for a Licence and Licence Restrictions
- Online/Mobile/Digital/Electronic Media
- Enforcement and Liability
- Anticipated Reforms
1. Relevant Authorities and Legislation
1.1 Which entities regulate what type of gambling and social/skill gaming activity in your jurisdiction?
| Relevant Product | Who regulates it in digital form? | Who regulates it in land-based form? |
|---|---|---|
| Gaming | Casino games are regulated by state-level laws and their digital forms also fall under the same laws. | States like Sikkim, Goa, Daman and Diu regulate offline casino games under their specific acts. |
| Poker | Skill variants of poker are generally not prohibited under State Gaming Laws, except in specific states. | Refer to the casino gaming section. |
| Bingo | Falls under lotteries or games of chance and is largely prohibited. | Subject to specific state laws. |
| Betting | Conditional prohibitions under State Gaming Laws. | Various states regulate betting on horse races and sports betting. |
| Fantasy Betting | Considered a legitimate business in most states. | Licensing regimes exist in Nagaland and proposed in Rajasthan. |
| Lotteries | Regulated under central and certain state laws. | State governments administer lotteries. |
| Social/Skill Arrangements | Non-monetary games are unlikely to trigger regulations. | Specific exemptions exist for skill games. |
Please note that the Online Gaming Rules require that all “online games” also comply with the IT Rules 2021 issued under the IT Act 2000. The applicability of these rules may vary based on the specific game and operator.
1.2 Specify:
(i) The law and regulation that applies to the Relevant Products in your jurisdiction;
(ii) Broad terms – whether it permits or prohibits the offer of Relevant Products to persons located in your jurisdiction.
In India, legislative powers are distributed between the centre and the states under the Constitution. The Public Gambling Act, 1867 is adopted by several states, while other states have their own regulations.
Most State Gaming Laws are pre-internet statutes, focusing on physical gaming houses. States like Sikkim and Nagaland have contemporary laws for online games, with specific licensing regimes. The state laws vary significantly in terms of the legality and regulation of different games and activities.
2. Application for a Licence and Licence Restrictions
2.1 What regulatory licences are required for the lawful offer of Relevant Products?
Licencing requirements depend on the product type:
- Casino: Licences are required for operation in Goa and Sikkim.
- Skill Games: Licences are essential in Nagaland and Sikkim.
- Bingo: Requires a licence in Sikkim; other states vary.
- Betting: Primarily regulated by state laws.
- Lottery: Governed by specific state laws.
- Social Gaming: Generally does not require a licence.
2.2 Where Licences are available, outline the relevant licensing regime.
Goa grants licences for casinos in five-star hotels, with specific fees based on location. Sikkim issues licences under strict conditions for both offline and online gaming.
3. Online/Mobile/Digital/Electronic Media
3.1 How does local law regulate the provision of Relevant Products in online forms?
Operators within India must comply with multiple laws including State Gaming Laws, IT Act, and PMLA, while those outside India face challenges in enforcement and liability.
4. Enforcement and Liability
4.1 Who is liable under local law/regulation?
Liability usually rests with the owner of the gaming establishment, operators without a licence, and individuals participating in illegal activities.
5. Anticipated Reforms
5.1 What (if any) intended changes to the gambling law are being discussed?
Discussions are currently underway to modernise existing laws, including proposals in various states to regulate online gaming more effectively.
Production Editor’s Note: This chapter has been authored by a member of ICLG’s international panel of experts. The chapter has been copy-edited for clarity and consistency.