Online Casino India 2023 – Gambling Laws and Regulations – India section covers general issues related to gambling laws and regulations, including relevant authorities and laws, license application, license restrictions, digital media, enforcement and liability.
Casino games, whether digital or land-based, are regulated by state-level laws in India. Casino games are games of chance and are therefore prohibited by most state-level anti-gambling laws (“Gambling Laws”). The state of Sikkim allows by obtaining a license to offer casino games such as roulette and blackjack.
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(“Sikkim Act”) and provided that games are offered only through intranet terminals. The state of Meghalaya has passed the law
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(the “Meghalaya Act”) through which operators can obtain a license to operate online and land-based games of chance such as slots, roulette, keno, wheel of fortune etc. to present in the state.
The authority under the Sikkim Act is the Department of Finance, Revenue and Expenditure, the State Government under the Meghalaya Act is the licensing authority, and the Commissioner of Revenue administers the licensing process.
India’s northeastern states of Sikkim and Meghalaya, the state of Goa, and the western union territory of Daman and Diu regulate casino gaming on a land-based basis.
The concerned authorities are the Department of Home Affairs in Goa, the Department of Tourism in Sikkim and the State Government of Meghalaya.
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With the exception of the states of Sikkim, Nagaland and Meghalaya, which regulate games of skill, and Tamil Nadu (which expressly prohibits real money poker), no other state regulates skill variants of poker. In Nagaland,
For poker played in casinos, please refer to the relevant box above on casino games. However, certain skill variants of poker (such as Texas Hold’em and Omaha Hold’em) are not affected by the prohibitions under the Laws of the Game (see the relevant row under “Games of Skill” below) and therefore these options can be played. physical rooms too.
Although there may be different formats in which bingo is played, each of these formats (whether played online or land-based) falls under the category of lotteries or games of chance. In the case of the latter, they are prohibited under most Laws of the Game. For lotteries only some countries regulate this, please see the applicable rule in the “Lottery” section below.
If the betting is on games of chance, it will attract prohibitions under the gambling laws. If in casino games, please see the relevant rule above. For sports betting and fantasy sports, see their respective rules below.
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Betting on horse racing has been recognized by the courts as a game of skill and many Gambling Acts also expressly exclude it from their prohibition, subject to certain conditions. Because most governing laws predate the Internet, most gambling laws do not contain specific regulatory or statutory language for online betting on horse racing. However, the racing club organizing the horse race may set certain conditions.
Under the gaming laws, the respective state governments regulate betting on physical horse races. This includes states like Karnataka, Telangana, West Bengal, Maharashtra, Delhi and Tamil Nadu. Additional conditions may be imposed by the respective racing club operating under the terms of the license issued by the State Government. See question 1.2 below.
Fantasy betting (paid to support a “league” or “portfolio” selection for a certain period of time, for example in relation to sports or stocks)
Most states do not regulate fantasy sports, with the exception of games of skill in the gaming laws. There are some exceptions to this.
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The states of Nagaland and Meghalaya have licensing regimes for virtual sports fantasy league matches under their respective laws. Rajasthan has recently issued a bill viz
The contents of the relevant box will be applicable (except for the point in Nagaland, Meghalaya and Rajasthan, which is applicable only on online platforms).
Lotteries are expressly excluded from the Gambling Acts and are governed by Central Acts and certain State Lottery Acts (collectively the “Lottery Acts”). Private lotteries are prohibited except those permitted under a license duly granted by the State Government.
(“IPC”). Among state governments that organize lotteries themselves, physical lotteries are conducted by their designated departments or the state finance ministry.
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Without money or equivalent stakes, most Laws of the Game are unlikely to come into play. There is no special regulator for such games. However, depending on the content of such games, other laws may be triggered, such as intellectual property laws or obscenity laws, etc.
There are specific exemptions for games of skill under gambling laws, and courts have also recognized the hosting of games of skill as a constitutionally protected legitimate business activity. Most Indian states do not require a license to host games of skill, except Sikkim, Nagaland and Meghalaya, which have licensing regimes for games of skill under their respective laws.
The contents of the respective box are valid (except for the point in Nagaland, which is for online games only).
1.2 State: (i) the laws and regulations applicable to the Relevant Products in your jurisdiction; and (ii)—broadly—permit or prohibit the offering of the relevant products to persons located in your jurisdiction.
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(“Constitution”). According to its Seventh Schedule, the Constitution empowers each state (province) of the country to enact its own “betting and gambling” laws for its territory. The
(the “Public Gambling Act”), a colonial-era law that is still in force and has been adopted by several states, including Uttar Pradesh, Madhya Pradesh and Punjab and Haryana, ba States have also made amendments to it by the state. Other countries have enacted their own legislation to regulate gambling/gambling activities in their territories under their own gambling laws. Most of them are modeled after the Public Gambling Act, albeit with appropriate modifications.
Most gambling laws are pre-internet laws and therefore only prohibit gambling in physical premises known as “gambling houses” or “public gambling houses”. The states of Sikkim, Nagaland and Meghalaya have modern gaming laws and licensing regime for online gaming. Sikkim and Meghalaya have online games and sports games that can only be hosted through the intranet and to the exclusion of their state residents. Nagaland only has a licensing regime for online skill games and gambling is prohibited. The states of Telangana and Andhra Pradesh ban all online games with real money, including games of skill.
Most state laws have specific exceptions for games of “mere skill.” “Mere skill” refers primarily to games of skill by the court. However, the courts in India have made their decisions based on the facts and circumstances of each case, rather than laying down an objective standard to distinguish games of skill from games of chance. The states of Nagaland and Meghalaya have licensing regimes for games of skill, the Nagaland Act and the Meghalaya Act also contain a list of recognized games of skill. Sikkim has a licensing regime for all online games – either chance or a combination of skill and chance.
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The states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu have recently amended their respective state gaming laws by weakening or removing express exemptions for games of skill and banning all games played for stakes, including a blanket ban on games of skill and online gaming. . The state of Kerala issued an enforcement notice in early 2021 that banned online gaming platforms from offering rummy for cash stakes in the state. All these changes to the respective gambling laws were challenged in the courts. Legal objections to legislative amendments
Are considered in the high courts of the relevant region. In August 2021, the Madras High Court rejected the above amendments.
Constitution. In February 2022, the Karnataka High Court struck down the above amendments made by the state.
, anti-gambling legislation for the state). In September 2021, the Kerala High Court struck down the above notification of the state government banning online rummy for shares, stating that it was arbitrary, illegal and violative of the fundamental rights guaranteed by the Constitution, particularly the right to trade, entrepreneurship, profession and occupation. . The court held that the game cannot be a criterion for deciding whether a game is based on skill or chance, and even without the aforementioned notice, the landmark decisions of the Supreme Court held that rum is a “mere skill game” remains and therefore the game found itself exempt from the ban. the
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The state governments of Tamil Nadu and Karnataka appealed against their respective High Court orders to the Supreme Court of India (“Supreme Court”). Both appeals were heard and are pending before the Supreme Court. The State Government of Kerala appealed against this decision before the Division Bench of the Kerala High Court and its decision is now awaited.
In October 2022, the Tamil Nadu State Government announced the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Gambling Act, 2022 (“TN Ord. “i”). .