Considering that gambling is one of the oldest pastime activities in the world, it has been popular for centuries in India as well. Gambling has been allowed by the Indian government since the 15th century. Yet it became even more popular in the 17th Century as mathematicians started using calculations to get larger jackpots.
Later, in 1967, the public act of gambling was implemented limiting the casinos in India. Since then the legislation has been adjusted so that each state can make its own decisions on the regulation of the gambling industry.
The criminal code
The criminal code defines what is legal and what is illegal when gambling in India. All online gambling activities are regulated by the IT Act, established in 2000. However, there is no law applicable for betting on an online website located outside India.
Regulation of casinos in India
In India, online casinos are regulated by the gambling act. However, each state has its adaptation of the act. As the Public Gaming Act took came into force before the era of online gambling it mostly refers to land-based casinos. One can take into account that the state of Sikkim has had its online gaming act enforced since 2008.
Paying taxes on your winnings
Because gambling in India is regulated you must know that online winnings are fully taxable. The general rule is that a flat rate of 30% without cess is applied, once the cess is added the tax rate for earnings in India is 31,2%.
