By Kevin Roberts, Content Editor
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, while three other states—Telangana, Andhra Pradesh, and Maharashtra—have prohibited online gambling. Although online gambling is deemed illegal in these states, no one has been charged with any offenses to date.
Gambling is a state-level governance issue in India, meaning the legality of various betting and gaming activities depends on the state you are in. However, there are a few federal laws that also affect gambling, both online and in-person.
This article will explain India’s gambling legislation, starting with the federal laws.
Federal Gambling Legislation in India
There are three federal laws in India that affect gambling, but only one pertains to the act of gambling itself. The other two laws govern online financial transactions related to gambling.
The Public Gambling Act of 1867
The most prominent among these laws is the Public Gambling Act, which initially applied only to the ten states under British control. Today, it applies to any state lacking its own casino and betting laws.
According to this act, it is illegal to operate or be present in a gambling house. However, Section 12 states that skill-based games are not considered gambling:
“Nothing in the foregoing provisions of this Act shall be held to apply to any game of mere skill wherever played.”
Unfortunately, the definition of a skill-based game remains unclear, leading to several court cases to determine whether a specific game qualifies as one 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—would determine if a game is considered gambling.
Additionally, the Act has faced amendments; in 1970 the definition of gaming was updated, and in 1998 the Lotteries Regulation Act was passed, allowing states to create their own lottery regulations.
The Foreign Exchange Management Act of 1999
This law affects online gambling legality by regulating currency exchange. If you deposit money into an online gambling account using a currency other than Indian rupees, that could be considered illegal. However, online gambling sites can either accept rupee transactions or use electronic wallets to bypass these restrictions.
The Information Technology Act of 2000
This broad law governs various online activities but does not explicitly mention gambling. Nonetheless, it allows the Indian government to block foreign websites at its discretion, which it has already done for some online gambling sites.
India Gambling Laws By State
State gambling laws supersede federal laws. Here’s a summary of gambling regulations in specific states:
Nagaland Gambling Laws
Nagaland prohibits online gambling where chance outweighs skill but offers licenses for skill-based games like poker and rummy, monitored by the state’s Finance Commissioner.
Sikkim Gambling Laws
Sikkim has legalized brick-and-mortar casinos and regulated online gambling since 2010. Although a few companies showed interest in launching, only PlayWin, offering online lottery sales, operates in the state.
Goa Gambling Laws
Goa has a vibrant casino industry with eight land-based casinos and five casino cruises, attracting a large number of tourists. Entry fees vary, providing access to unlimited drinks and food.
Telangana, Andhra Pradesh, and Tamil Nadu
These states have prohibited online gambling, passing laws primarily due to incidents related to online gambling, like the tragic suicide incident in Andhra Pradesh.
Other Forms of Legal Gambling in India
The only legal forms of gambling recognized at the federal level include horse race betting and lotteries. Both activities have their regulations and can be engaged in throughout the country.
Overseas Gambling Sites for India
Using online gambling sites based outside India is generally permissible, but caution is advised in states that outlaw these practices. Criminal charges are more likely aimed at operators than individual players.
History of Gambling Laws in India
The modern gambling industry in India differs greatly from historic practices. Gambling, being a part of Indian culture, dates back thousands of years and has evolved alongside the country’s laws.
How India’s Gambling Laws Affect You
If you’re in India or planning to visit, understanding these laws can enhance your experience. Go to Goa or Sikkim for land-based gambling options, and consider reputable overseas online platforms if you wish to gamble online.