Indian Gambling Laws

There is no unified gambling legislation in India that would cover such activities. Gambling in the country is considered a state matter, and that is the only subject with any authority to regulate gambling activity.

The Gambling Act is the central piece of legislation that some states have adopted in the country, but there are no explicit mentions of online gambling.

Section 12 of the Public Gaming Act of 1867 says that skill games aren’t a part of gambling, but every game of chance is. The same act states that it is illegal to be in charge of a public gaming house. The penalties for such activity are strict, and guilty individuals can face up to 3 months of imprisonment.

The act forbids visiting gambling establishments as well, and there is a prison sentence of up to 1 month for such violation.

The issue of gambling in India is a growing concern for everyone, including the country's parliament. On one side of it, you will find people arguing that online gambling should be totally legal in the country, while on the other side, there are people who are against changes.

So, the current legal situation of online gambling is in a grey area. Until the Indian government takes a decision, it will remain that way. There are no specific gambling laws and authorities that we can point to.

Instead, it is left to each state and its respective government to set its own legislation on online gambling in the territory. So, it is needless to say that it is essential for the country to adopt clear federal legislation to have much better control over the vast online gambling market.

All things considered, it is challenging to understand whether any activity should be regarded as legal or illegal according to the regulations in the Indian gaming market.

The local gambling regulations in India partially cover online gambling activities. Several states, such as Sikkim, which introduced the Sikkim Online Gambling Act of 2008, have also introduced regulations that make online gaming legal. It controls and regulates the sector and imposes taxes on online gambling operators in the territory.

There are few amendments made to the Sikkim Online Gambling Act, so only operators in the state's territory will be permitted to apply for a licence.

Another state which regulates online gambling is Nagaland. It introduced the Online Games of Skill Act of 2016. As the name suggests, it covers the games of skill in the territory, and any operator offering these games can apply for a licence.

In 2021, Meghalaya state enacted the Meghalaya Regulation of Gaming Act which allows both online and land-based games of chance within the territory of the state after obtaining the respective licence.

Apart from these states, no one has specifically mentioned online gambling in their legislation so far.

As mentioned above, some gambling legislation in India excludes the games of skill from the prohibited list of games in the country. On the other hand, a game of chance is a game where there is a random outcome in which the punter chooses the bet amount for specific rounds.

In a game of skill, the person will also bet on the result, but they have more control over the outcome. To put it simply, the better the player's skill set, the bigger their chances of securing a win.

Deciding which ones fall under the category of games of chance or games of skill is not as straightforward as it may seem. Courts in India have had problems in telling which is which. Examples here include poker and rummy, and there have been various discussions about whether they are forms of legal gambling in India or not.

The fact that online gambling is a grey zone in India doesn’t mean that there are no penalties for people who indulge in such activities. Even though there hasn’t been a case in the country of punters being prosecuted for gambling online, people still need to respect provisions.

Under the Public Gaming Act, anyone found playing games of chance for money will face imprisonment for up to 1 month, and there will be a fine of 100 rupees. Additionally, anyone found in gaming rooms during any gambling activity will be presumed to have been there for gambling purposes.