Online Gambling Laws in India

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Robin Storm
Senior Author
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India's gambling laws are mixed and unclear in places, with the industry still largely in its infancy. That said, there is a growing appetite for gambling activities, particularly online sports betting on cricket and casino gaming, resulting in a few states attempting to make these activities legal. Read on for a closer look at India's gambling laws.

Gambling regulations in india

Gambling Regulation by Casino Type

India is an example of a country whose gambling laws are dictated by its various individual states. This can potentially confuse, but thankfully, national laws clarify the situation.

Generally, there are only two types of gambling legal in the country: sports betting and playing state lotteries. That said, Goa and Sikkim are home to several world-renowned, perfectly legal casinos. In addition, though online betting is prohibited in several Indian states, there is no legal framework for the activity in any of the others. To illustrate the legality of gambling in India, let's look at each activity in turn.

Casino Games

The Public Gambling Act of 1867 made it illegal to operate a gambling house or be present in one, and for most of India's 29 states, this antiquated law still stands. The only exceptions are states with their own casinos, namely, Goa, Daman and Sikkim.

In Indian online casino gameplay, much of the country's laws lack specific mentions of the activity, effectively meaning that Indians can play these games. However, there are a couple of exceptions to this generalization. The law distinguishes between games of chance and skill, with the latter e.g.. rummy, poker) not classed as gambling in the country. In addition, some states have their gambling laws as follows:

  • Nagaland: All games in which chance outweighs skill are prohibited, with licences offered to operators hosting only games of skill (e.g.. online poker rooms)
  • Sikkim: Online gambling was legalized in the state in 2010, but the small population made it unprofitable for online casinos to operate there
  • Andhra Pradesh, Telangana, Tamil Nadu: All three states recently outlawed all forms of online gambling, including sports betting, lotteries and rummy

Two other laws in India influence online casino gaming. The Foreign Exchange Management Act (FEMA) of 1999 was enacted to prevent illegal currency exchange affecting online casinos, specifically deposits from Indian nationals. The result is that online casinos can only accept rupee deposits or with ewallets, bypassing FEMA restrictions.

The Information Technology Act of 2000 grants the Indian government the power to require internet service providers to block specific websites, with some online gambling sites falling foul of such powers, in many cases for unclear reasons.

Poker

In most regions of India, poker is regarded as a game of skill and, therefore, not classed as gambling at all under the Public Gambling Act. Only one state in India has laws specifically addressing poker, and that is Nagaland, where licensed operators can offer residents online poker gameplay, but only as long as they fulfill the following two requirements:

  • Both main offices and servers must be located in India
  • The operator must only offer games of skill

Asking these sites to remove their other games is a tall order, especially since many of them have been operating without a licence in the country with their full suite of games for many years. Of course, many people in India, specifically Nagaland, continue to enjoy the wide range of games available at the numerous offshore online casinos.

Bingo

Bingo is a tricky game to define regarding Indian gambling laws, as it all depends on how the game is viewed. As a game of chance, bingo is generally classed as illegal in India. However, if it is classified alongside lotteries, it could be legal under the Lotteries Regulation Act 1998.

The only place where bingo gaming is legal is the small state of Sikkim, but there aren't any operators currently offering online bingo gambling in the region.

Lotteries

Many people drew attention to the fact that the Public Gambling Act of 1867 failed to mention lotteries. Even the amended version in 1970 included the concept of wagering and betting as gambling but didn't include lotteries. This led to a lot of confusion, which resulted in a law specifically for lotteries. The Lotteries Regulation Act of 1998 gave each state the right to create its regulations on lotteries, with the only rule being that any lottery could operate only once a week.

Currently13 of India's states allow lottery betting, but notably, it is illegal in Nagaland, Tamil Nadu, Andhra Pradesh and Telangana. Online lottery games for real money are generally restricted to buying tickets for the state lotteries via official websites.

Social Casinos and Crypto Casinos

As India's gambling laws are outdated at best and nonexistent at worst, there is little information regarding the legalities of social gaming, particularly regarding the concept of loot boxes in certain otherwise non-monetary games.

The general legal consensus regarding gambling in most states is that games of chance are illegal and games of skill are legal, except in the previously mentioned states where any form of gambling is deemed illegal.

Sportsbet laws

India Sports Betting Laws

The only other gambling activity besides state lotteries that enjoys legal status almost across the board is horse racing betting, a popular pastime in the country for many years. A Supreme Court case 1996 clarified that since horse racing betting is a skill-based activity, it is legal in India. Indeed, there are many on-site bookmakers at the various racetracks nationwide.

Other forms of sports betting fall under the Public Gambling Act's definition of chance-based games and are generally classed as illegal in the country. However, that doesn't stop many underground bookmakers from operating. In addition, since there is little to no mention of online sports betting in the laws of most states, Indians generally find it relatively easy to bet on sports via the numerous offshore online sports betting sites.

Gambling Age Restriction

In the regions where gambling is legal, the age at which these activities are permitted is 21 or over. However, lotteries form one important exception: those aged 18 or over can participate in this activity as long as state laws permit it.

Tax Regulation

India gambling tax regulation laws apply in states where gambling activities are legal. In these areas, there is a standard 30% tax on any winnings obtained from legal gambling under the Income Tax Act.

History of Gambling Laws in India

Ancient Vedic texts mention gambling in the form of dice games and boards as far back as 7300 BCE, suggesting that Indian culture has a rich history of the activity. By the 15th century, gambling was so popular that kings and their officials created house rules, allowing them to implement taxes on the activity.

With the British came cricket in the 18th century, and from there, a love for the sport and betting on it became extremely popular in India. The Brits tried to gain control of the rampant betting with the passing of the Public Gambling Act of 1867, but for the most part, it was already too late. 

India gained independence from Britain in 1947, but it wasn't until 1976 that some Indian states, including Goa and Daman, made gambling a punishable offence. Goa introduced a bit of leniency with the Goa Gambling Act amended to allow slot machines in 5-star hotels in 1992 and table games in 1996.

That same year, the Supreme Court case of Lakshmanan v State of Tamil Nadu in 1996 ruled that horse racing betting is skill-based and, therefore, legal. In 1998, the Lotteries Regulation Act clarified that individual states could pass their regulations on lotteries as long as operating lotteries only run a maximum of once per week. 1999 saw the first of Goa's casinos open, but additional licences were not granted until 2007. Sikkim followed suit in 2009 with its first casino, with the state accepting online gambling licence applications from 2010.

The Nagaland Gambling  Act was passed in 2016, making skill-based gambling legal in the state. Telangana went in the opposite direction, making all forms of gambling illegal in 2017, with Andhra Pradesh and Tamil Nadu doing the same in 2020.

Key facts

Key Facts

The main points regarding online gambling laws in India are as follows:

  • Online gambling is not specifically mentioned in the laws of most Indian states, with many people able to bet on sports and play online casino slots, table games and live dealer games via offshore online casinos as long as they do not violate the Foreign Exchange Management Act (players must use rupees or ewallets to deposit).
  • Three states have made online gambling illegal: Telangana, Andhra Pradesh and Tamil Nadu.
  • Sikkim has made online gambling legal, but the region is too small to be profitable for most operators.
  • Two gambling activities are legal across most of India: horse racing betting and state lotteries.
Robin Storm

Robin Storm

Author & Casino Games Expert

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Robin works tirelessly to make gambling fun and worry-free for all players. With his impressive industry experience, he is passionate about being able to play casino games in a fun and safe environment, ensuring players avoid all the hassles that may appear.
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