Online gambling have become very popular around the world, although the industry still faces many regulatory problems in some countries like India. Many people in India like to play online casinos every day, but the situation regarding the legality of such practices is far from clear.
The question: is online gambling legal in India? This question continues to spark debate, but seems to be moving
closer to the resolution.
In world population India is the second most populated country with 1.35 billion people. It is therefore not surprising that there are many people in this region who like to play. Sports betting is very popular, especially in cricket, just like in horse racing, Casino games and poker are also popular too.
Despite the popularity of the game in India, it is technically prohibited in most forms. There are some exceptions, but very few legalized and regulate the game. Much of the gambling law is very out of date and extremely unclear, this is especially true for online gambling.
As a result, it is very difficult to determine exactly what is legal and what is not in India. The legality of gambling has been a controversial issue in the region for many years, but little progress has been made in clarifying it. The fact that there is federal and state gambling legislation makes the matter even more confusing.
Online gambling, casino and betting is illegal in most parts of India. But no law makes online gambling an illegal activity. Offshore betting companies appear to use this “gap” to persuade Indians to bet on just about anything. The Indian Premier League (IPL) is at the top of the list, and some websites have even created links to offshore betting agencies so Indians can place bets online.
However note that one of the advisory websites in India which is indiabet.com, explains that the site don’t take bets, but rather help potential gamblers get in touch with international online bookmakers. The website also offers the names of online betting companies such as William Hill, bet365, Ladbrokes and Betfair for placing bets. The platform also updated a video that can help customer understand the process on how to open an online account at one of the betting shops. To prevent potential legal problems, the website clearly states how and why online betting is made easier.
Although question of the legality if betting with an international bookmaker from India is not clear enough which still draws back to the fact that India law on online gambling is not straightforward. Although bookmakers are illegal in India, there is no specific law in India that prohibits an individual customer from placing a bet online with a bookmaker based outside of India, “the website clarify.
Note that all these agencies in India accept online betting accounts only with an Indian address, because according to indiabet.com it stated that: Bet365 which is known as one of the largest betting agencies in the UK, only accept bets paid in Indian rupee from customers in every state in India.
Under the Public Gambling Act (1867), all types of gambling are illegal in India. Unlike the United States, where the United States law prohibits internet gaming, there is no specific law in the Indian system prohibiting online gaming.
However even if online gambling is illegal in India, it can be difficult to catch online gamblers in India especially if the websites are hosted by servers that are located in countries where betting is legal. Because Law enforcement becomes difficult when the servers are abroad. On March 4, 2009, the government of Sikkim (Ministry of Finance, Revenue and Expenditure) published a memorandum called Sikkim Online Gaming (Regulation) Rules, 2009. It describes the rules and regulations for online gaming licenses in this state.
However, if an Indian-based player chooses to place bets on a website that is hosted outside the country, it is difficult to find them guilty of online gambling if the laws of the country in which the website is hosted to allow online gambling.
Online gambling law in India
Gambling is regulated at the national and state levels in India. At the national level, the game is mainly governed by two or three laws, which are listed below:
- Public Gaming Act of 1867
The 1867 Public Gambling Act made it illegal to operate a gambling house. The law describes a gambling house as “a house, an enclosed enclosure, a room, or a place where play of cards, dice, chips, money, or other gaming instruments.” for gaming purposes, whether for money, betting or otherwise. The punishment for being caught in the act is up to a month in prison.
This law is well over a hundred years older than the Internet, so there is a lot of debate about whether it applies to online games or not.
- Price Competition Act, 1955
The 1955 Prize Competition Act appears to target a specific type of game, but has been designed to apply to all game types in which a prize is awarded. In short, the law prohibits contests in which prices exceed one thousand rupees a month.
The law defines “price competition” with the following wording: “price competition” means any competition whether it is a cross price competition, a missing word competition, a photo price competition or another name that is a price for Solved puzzles based on the construction, arrangement, combination or permutation of letters, words or numbers.
- Information Technology Act, 2000
The Information Technology Act 2000 is even more difficult than the other two laws described above because it has a very wide scope. The law is still controversial today because it is vaguely worded and imposes severe penalties for a variety of crimes.
Like the other two laws on this page, the Information Technology Law does not specifically mention online gambling. However, the following text could be interpreted to apply to internet betting. No case of internet betting has been examined in court, so we do not yet know if this applies to gambling or not.
The most controversial part of the law is also the part that may or may not apply to online gambling: sending offensive messages electronically or sending information via an email message that is grossly offensive or threatening and can lead to insult, injury, criminal intimidation, hostility, hatred or bad will, etc. or sending such letters to mislead or deceive the recipient.
Violation of this part of the law can result in imprisonment of up to three years and an unspecified crime. The Bombay Supreme Court has already ruled that this law can be applied to content posted on websites.
Can online gambling be viewed as a message that can cause insult, injury, or bad will? Does it fall under the weird vague? We do not know it. So far, there is no news or story that anyone who has gambled or bet online face any kind of the above stated quote.
Online gambling is not specifically mentioned in any of these laws, which is why they are in a gray area of the law. Some may argue that the 1867 Public Games Act applies to online games because it restricts all forms of “gaming”. In addition, there is the problem that the “games” themselves are never legally defined.
States are also empowered to regulate gambling to some extent. Two states, Goa and Sikkim, have licensed a limited number of stationary casinos. Other states prohibit most forms of playing, betting, and poker. The only national exception is horse racing, which according to the Supreme Court in 1996 was a game of skill.
Although most forms of gambling are banned in the real world in India, there is no legal way to prosecute those who choose to place their bets online. Because of this, India is a fast growing online gambling market. With a population of 1.2 billion and a growing middle class, India has great potential for electronic game operators.
Offshore betting providers such as Bet365 have already entered the market and supply Indians. At Bet365 you can deposit with Indian rupees and are invited to register and play all games from India. Bet365 resides outside of India and is therefore immune to laws that prohibit the operation of gaming sites. And since there is no law prohibiting individuals from placing bets online, Bet365 can take advantage of the legal loophole.
The legal landscape of online gambling in India
The Indian government has traditionally restricted most forms of gambling, with the exception of categories such as horse racing and lotteries. In India it has long been argued that gambling leads to increased criminal activity. However, proponents suggest that better regulation would be beneficial as it would help generate significant tax revenue for the country.
The 1867 Public Gambling Act prohibits or operates a public gambling house, but does not mention the Internet and online gambling platform. The Information Technology Act of 2000 does not mention gambling or betting and leaves the interpretation of its legal scope to the courts.
While Indians operators are prohibited from operating online sites with games such as blackjack, video poker and baccarat, the same rules do not apply to offshore companies. The only legal requirement for casinos like JackpotCity or Spin Casino is that they have to offer rupees as payment for Indian players.
A prominent politician, Shashi Tharoor, campaigned for a law change and submitted a bill to parliament that proposed regulating online gambling in India. Given the claims of some experts that the Indian gambling industry is worth over $ 150 billion a year, it’s easy to see why the government can be persuaded to rethink its position in the coming months.
Different online gambling games and their legality in India
- Horse racing in India
Horse racing has long been a popular sport in India. There are several race tracks in the region and the racing events regularly attract large audiences. Bookmakers offer their services legally on these racetracks, as do totalizer operators who offer pool bets. Horse racing is also legal outside of the courts and betting shops are located in many regions of the country.
In India horse racing betting is legalized at the state level, this law has a contradiction to the position regarding gambling. This may be because horse racing would not have the same appeal without betting, but it is still a good example of the contradicting gambling laws in India. ,
- Lotteries in India
Another form of gambling that is not so strictly prohibited in India is the lottery. This makes all the less sense since lotteries are the ultimate no-skill games of chance. However, the Lottery Act of 1998 was passed to regulate the operation of lotteries.
Although the law was passed at federal level, it essentially gives state governments the right to allow lotteries in their jurisdictions. The law stipulated that a maximum of one draw per week is permitted, but this didn’t seem to be too strict.
- Casino games in India
There are two state governments in India that have passed state-level laws to allow legalized casino games. Some state in India now house different land-based casinos and also a number of cruise ship-based casinos. In part, it has therefore become a very popular tourist destination.
Sikkim was the next state to legalize casino games, and it currently houses two land-based casinos. It is also a forerunner in legalizing online gambling.
- Online Gambling in India
The 1867 Public Gambling Act did not apply to online gambling. This is not a surprise since the internet was far from invented when it was launched. It could be argued that operating a gambling website in India is considered illegal under this law because of its wording, but this is far from clear.
There is also another law that could be considered in relation to betting and online gaming: the Information Technology Act 2000, which provides for various offenses related to online activity, even if this is the case again. It is not expressly stated of illegal online games. However, this gives the Indian government the ability to block third-party websites.
The government has used this power to request Internet service providers to prevent Indians from accessing certain foreign betting and gaming sites. At state level, two states have passed laws specifically related to online gambling. This is completely banned in Maharashtra, while in Sikkim the government is now authorized to license operators who want to offer online gambling services in the state. This is a remarkable advance for regulated gambling in India.
The view Tradition against law on gambling in India?
Gambling takes place at an important level in India during the festivals, especially at festivals such as Diwali and Holi, which increases gambling activities in India to 30-40%. Although some states are stricter than others and the courts do not define the festival as a crime, police raids are also regularly carried out during the festivals. However, all of this relates to offline gambling.
In addition to sports and local traditions (animal fights, etc.), players have the opportunity to play card games such as poker, rummy or 3 Card Teen Patti. Local casino-style games include Passa, Flish and Andar Bahar.
The Efforts made by Law commission of India on online gambling
The authorities are aware of the huge introduction of gambling across the country. The Law Commission of India (LCI) has pleaded with the government to legalize online gambling, Casino and all form of betting in a meeting done in July 2018.
The LCI is an executive body of the government itself and has the task of promoting legal reform. In a detailed report the LCI recommended India to legalize sports betting and gambling to increase much-needed public revenue and reduce problem of gambling.
Among the specific recommendations, the LCI differentiated between “good” and “small” games of chance, with the “good” referring to higher stakes. From this point of view, income thresholds would be introduced and people with social support or low income would be excluded from any illegal play.
This update is quite refreshing and fascinating, as all of this will one day be completely legal.
Conclusion
In regards to the question: Is online gambling legal in India? Well, the answer to that question is not that simple or straight forward to answer because it is actually quite complex and confusing. We would examine the dynamics of the legality of online gambling and casinos in India.
First, there is the 1857 Public Gambling Act, which prohibits the possession or operation of a public gambling machine. However, there is no comment on online casinos or the internet platform for gambling.
In a further step, the state of Sikkim has introduced its own gaming regulations that allow sports betting. However it is safe to say that online games are not regulated in India and there is still a question about their legality. In addition, no decision prohibits Indians from playing in foreign online casinos.
In general, gambling laws in India are confusing, poorly worded and applied arbitrarily. The reality of everything related to online gambling is that people across India are betting online every day. There is no law that penalizes the simple act of placing some bets online. If you live in India you have access to a variety of internet casinos, sports betting and poker games.
There’s no reason to stop you from enjoying the excitement and convenience of gambling websites. Online betting is safer than personal betting in most countries. Millions of Indians are already playing online and have had no legal problems. Although it is recommend to observe the laws in your area. The Indian Gambling Act makes little sense and is applied arbitrarily. You should always check with local authorities before placing real money bets.