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Executive Summary on the Gambling Laws in India | Impact on the Online Gaming Sector

Chaahat Kohli Sethi
Chaahat Kohli Sethi
  • Jul 1, 2022
  • 10 min to read
Executive Summary on the Gambling Laws in India | Impact on the Online Gaming Sector Kohli Sethi

Introduction

The regulations governing gambling and internet gaming in India are either outdated or nonexistent; the world is quickly moving toward a more tolerant perspective on games of "skill." In India, the current administration has not proposed any specific gambling regulations, and there has rarely been any development of a techno-legal framework in this century. While the controversy over whether certain types of wagering is permitted or not rages on, it is clear that Indians enjoy gambling.

 

Gambling laws and acts in India

Many acts and provisions have been made regarding the concept of gambling but none of them really prohibited the culture of gambling from India. 

In India, there are still no regulations that outlawed online gambling until recently. Due to the fact that the internet did not yet exist, the Public Gambling Act of 1867 did not apply to online gambling. The question of whether this rule applied to online gaming services has been fiercely disputed. Despite this, a lot of individuals wager online. Many people have claimed that both poker and sports betting were allowed because the Public Gambling Act of 1867 indicated that games of skill were acceptable. Despite the fact that many legislatures have chosen to ignore this reality, there is convincing evidence that both are considered to be skills.

India's States and Unions are free to decide whether to permit gambling or not. The two main locations in India where people can gamble on land-based casinos or boats are Goa and Sikkim. Online gambling has been introduced in the state of Sikkim. As a result, a lot of online gaming platforms have looked for collaborators in India. To obtain a licence to conduct business in India, companies like Ladbrokes, William Hill, and Betfair, to name a few, would need to collaborate with an Indian organisation. Due to the expanding middle class and skyrocketing internet usage growth, this is the sector that betting sites are most interested in targeting these days.

 

Forms of Gambling and their impact on online gaming in India

The world has been completely taken over by the internet gambling industry. In a word, gaming businesses around the world are booming. Particularly over the past few years, the Indian market has seen significant growth. A growing number of gamers are trying their luck at casinos and generally taking advantage of what the gaming industry has to offer. In India, gambling has grown significantly, yet not all forms of gambling are actually permitted. It is vitally crucial for you to be aware of both perspectives so that you can enjoy yourself carefree. Even individual court decisions in each of India's provinces specify whether other forms of satta are acceptable.

 

Legal Gambling

There is one type of gaming that you will undoubtedly encounter while travelling around India. Lotteries are the method used for this particular form. This is a rather odd act on the part of the government considering that they have outlawed any gambling and betting that relies only on chance or randomness. Unlike other forms of gambling, like as sports betting, where some level of analysis is required, lottery involves no skill and is solely dependent on a chance outcome. India is used to fund and advertise the numerous lotteries.

Horse racing betting is another permissible type of gambling. There is a catch, though. Only in the province where the racetrack is located can you place a wager on a horse race. As a result, you can only satta on horses where there is a racetrack. Online gambling is strictly prohibited (although there is some grey area here; we are not attorneys, and this is just our view based on our research), but in this instance, the only legal gambling is on live horse races at authorized tracks in India.

 

Gray Area of Gambling

Regarding legality, land-based casinos are in a limbo. Only Goa and Sikkim, two states in India, have casinos and permit their operation. Some casino games would become legal as a result, but only when played at those casinos and in those states. Sports betting is severely limited in India, as it is everywhere else when it comes to betting and gambling.

This category also includes certain casino card games that are highly popular throughout the Indian regions. Rummy, poker, and satti pe satti are a few games that are popular yet no one is sure if they are legal or not. All of this is made possible by the hazy legal definitions that do not classify these games as games of skill or chance. Poker is not prohibited because it is not said to be a game of chance, but it also is not stated to be a game of skill, thus it is also not legal. This is what many people find confusing.

 

Illegal but still popular

Although it's against the law to bet on sports in India, as I've already indicated, at least half of the country's overall revenue comes from illegal gambling. Online gambling and bookmakers are rigorously regulated in India when it comes to everything related to the internet. The Federal Information Technology Act of 2011 and the Information Technology Act of 2000 were two laws passed to regulate and outlaw online gambling. It is against the law to distribute or publish "information that can corrupt individuals," which includes gambling, according to each of these statutes.

The burden is now on the Internet Service Providers to suspend and block the offshore gambling sites following the passage of the law in 2011.

 

References

  1. https://iclg.com/practice-areas/gambling-laws-and-regulations/india

  2. https://sportsbetting.net.in/gambling-laws/

  3. https://www.mondaq.com/india/gaming/350824/online-gaming-and-gambling-laws-in-india

  4. https://gamblingaffiliatevoice.com/news/the-ins-and-outs-of-online-gambling-in-india-laws-and-legislation-explained/

  5. https://parinamlaw.com/state-of-play-online-gaming-and-anti-gambling-laws-in-india/

  6. https://www.lawyered.in/legal-disrupt/articles/legal-position-online-gaminggambling-india/

Chaahat Kohli Sethi
Chaahat Kohli Sethi

Based out of New Delhi, we are a group of driven and hard working individuals providing expert and experienced legal advice to start-ups, established corporate houses, and individual clients. We are committed to provide high quality legal services. It is our solution-driven approach with which we cater to the requirements of our clients.

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February 14, 2019

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Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

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