With a population as large as that of India, it is inevitable to have a big part of the society interested in gambling. As numerous online casinos have appeared in the past several years and with virtual gambling gaining a lot of popularity, many Indian residents are wondering if they can also embark on online gambling adventures.
When it comes to the legality of online gambling in India, however, there is a big gray area that can be a tad hard to understand. Since gambling in the country is governed thanks to the Public Gaming Act of 1867, there are plenty of outdated regulations that need to be revised. According to the Gaming Act, online gambling is still not legalized in India, however, a study related to the regulation in India shows that due to the outdated law, there are plenty of loopholes that many players may take advantage of and still gamble online. Due to the changing face of the Indian gaming industry and the constant developments in the iGaming sector, however, several states have been working towards the legalization of both land-based and online gambling.
The legality of gambling in India
The Indian culture has shown many traces of gambling games that were even described in the Ramayana that many believe dates back as far as the 7300’s BC. Despite the long history of dice games and board games that included some form of gambling, until this day, both land-based and online gambling are deemed as illegal by the Public Gaming Act of 1867. If a casino owner is caught in breaking the law, a fine of 200 INR should be paid or the operators may be imprisoned for up to 3 months. Meanwhile, when an individual breaks the law and visits a gambling facility, he or she will have to pay a fine of 100 INR or serve a sentence of up to 1 month in prison.
The reason why the Gaming Act needs serious amendments, however, is the vague definition of gambling or the lack of such. It is not clear which games are considered as gambling and which are mere games of skill and will not impose a fine or imprisonment. Many would argue that as most casino games are considered games of chance, they should be legal according to the Gaming Act. However, in India, several State legislations deal with the legality of land-based and online gaming. Each state has its own laws and regulation that decide which games fall under the category of legal gambling.
States in India that have legalized gambling
According to the Indian Constitution, gambling is a State matter and each state has the responsibility to regulate any form of gambling within its own jurisdiction. The Central Government does participate in the regulations of lotteries and social games with no real money prizes but it does not issue any gambling licenses.
On the other hand, the States Governments can legalize some games and issue licenses within the territory of their respective states. The states also have the right to impose taxes on betting and gambling events. As of now, the lottery is legal in 13 different states in India while brick-and-mortar casinos are legal in the states of Goa and Sikkim and the Union Territory of Daman.
Goa was the first state to take the first step towards legalizing local gambling and currently it has the highest number of gambling facilities in India. Thanks to the number of land-based and floating casinos, Goa has become a popular state for Indian tourists and both the state and the Central Government have worked on implementing different laws that will ensure fair and safe gambling on the territory of Goa. The casinos based in this state have to pay a tax of 10%, while other regulations introduced by the laws in Goa have raised the legal age of gambling to 21, have restricted locals from gambling and imposed strict measures against money laundering.
While Goa allows only offshore casinos, the state of Sikkim is the first one in India to legalize onshore land-based casinos. Another form of gambling that has been legalized in Sikkim is online gaming and sports betting. Online lottery is also allowed on the territory of the state and virtual players and punters can enjoy quite a few forms on online betting when they are based in the state of Sikkim.
The Union Territory of Daman has only one onshore casino but it is the largest one in the entire country. Currently, this is the only Union Territory in the country that has legalized casino gambling. As far as online gambling, it is also worth mentioning the state of Nagaland as it is the first jurisdiction in India that started issuing licenses for online poker. To further improve the gambling scene in the state, fantasy games have also been legalized by the laws introduced in Nagaland.
Current State of Online Gambling in India
As of now, only Sikkim and Nagaland have legalized online gambling with other states in India still on the fence about introducing changes to the strict but outdated gambling laws. Although few states have been working towards legalizing this industry and enjoying the economic benefits of conducting legal gambling activities, in most parts of India both land-based and online gambling is still considered illegal. This leaves no other option for many Indian players but to look for loopholes in the outdated laws and seek illegal ways to enjoy virtual gambling.
