Gambling in India varies by state as states in India are entitled to formulate their own laws for gambling activities. Some states like Goa have legalised casinos. Common gambling activities like organized betting is restricted except for selective categories including lotteries and horse racing.
However, gambling is a state subject in India and only states are entitled to formulate laws for gambling activities within their respective states. Currently, out of 29 states and 7 Union Territories, only 3 of them allow casinos as legal. The legal gambling age in South Korea is 18 and this covers the great gambling areas of Jeju and Seoul. Jeju, in particular, is home to some of the biggest poker games in the world, so if you fancy your chances against rich business people and the best professionals, this is a great place to gamble. Dec 08, 2020 Why it is time to regulate online gaming and fantasy sports in India Online games are disguised as fantasy gaming, but in reality, they are betting games with a predominant element of chance. KPMG India in a study in September 2019 suggested that the Indian online gaming industry is set to exceed Rs.25,000 crore by 2024. However, operating a gaming business is not so easy in India where the laws are stringent. Laws on online gambling in India still remains a grey area which is yet to be adjudicated by the Courts of India.
In the 21st century, more people have started making cash bets upon prohibited betting and gambling activities in India. Critics of gambling claim that it leads to crime, corruption and money laundering. However, proponents of regulated gambling argue that it can be a huge source of revenue for the state. Casinos in Goa contributed Rs. 135 crores to the state revenue in 2013.[1]
Casinos now operate in Goa, Daman and Sikkim.[2]
Legality[edit]
Gambling is a state subject, and only states in India are entitled to formulate laws for gambling activities within their respective states. The Public Gambling Act of 1867 is a central law that prohibits running or being in charge of a public gambling house. The penalty for breaking this law is a fine of ₹200 or imprisonment of up to 3 months. Additionally, this Act prohibits visiting gambling houses. A fine of ₹100 or imprisonment of up to one month is the penalty.[3]
Indian law classifies games into two broad categories viz. game of skill and game of chance. The Supreme Court of India has, for instance, held[4]
The game of Rummy is not a game entirely of chance like the ‘three-card’ game mentioned in the Madras case to which we were referred. The ‘three card’ game which goes under different names such as ‘flush’, ‘brag’ etc. is a game of pure chance. Rummy, on the other hand, requires a certain amount of skill because the fall of the cards has to be memorised and the building up of Rummy requires considerable skill in holding and discarding cards. We cannot, therefore, say that the game of Rummy is a game of entire chance. It is mainly and preponderantly a game of skill.
The Information Technology Act 2000 regulates cyber activities in India does not mention the word Gambling or Betting thereby the act was left for interpretation by the Courts which have refused to examine the matter. Further, online gambling is a banned offense in the state of Maharashtra under the 'Bombay Wager Act'.
Only three states allow casinos, Goa , Daman and Sikkim.[5] There are two casinos in Sikkim called Casino Sikkim and Casino Mahjong and 10 in Goa, of which six are land based and four are floating casinos that operate on the Mandovi River. The floating casinos in Goa are Casino Deltin Royale, Casino Deltin Jaqk, Casino Pride and Casino Pride 2. While the first two are controlled by the Deltin Group, the latter two are managed by the Pride Group. According to the Goa, Daman and Diu Public Gambling Act, 1976 casinos can be set up only at five star hotels or offshore vessels with the prior permission of the government. This has led the Deltin Group to open the first land based Casino in Daman which is open now. News reports also suggest that Visakhapatnam is also being looked on as the next casino destination.[6]
The penalty for being caught gambling online has been a fine of ₹ 90,000 per day since 2009.[7]
Online[edit]
Online gambling is in its infancy in India, but Sikkim planned to offer three online gambling licences in 2010. This failed despite India being the most sought out country for online gambling.[8] Sikkim also permits an online lottery, which takes bets from players throughout India. It was expected that other states would follow Sikkim, thereby opening up a major online gambling market throughout India.
Even though Indian casinos cannot promote or have sites that promote online gambling games such as casino, sports betting and bingo, it is not illegal for non-Indian casino companies (so called offshore companies) to have sites that focus on Indian players. The only requirement from a legal point of view is that the offshore casinos have to offer Indian Rupees as a payment method for Indian players. Although this is not accurate anymore since January 2020.
Unlicensed gambling is happening regardless, with as much as $60 billion worth of action and $48 billion being directed at Indian cricket alone.
Legalisation[edit]
Despite the existing prohibitive legislations, there is extensive illegal gambling throughout the country. The Indian gambling market is estimated to be worth US$60 billion per year, of which about half is illegally bet.[9] According to the Indian National Newspaper, the Chief Executive officer for the International Cricket Council (ICC) said he was in favour of legalising betting in sports. He believes the illegal funds profited are through underground bookies that used the money to fund terrorism and drugs.[10] Many Indian professionals as well as online forums have urged the government to introduce legal but regulated gambling in India to bring the gambling economy out of the grip of mafia and underground dons.[11]
Payment gateways[edit]
One of the biggest obstacles faced by sports bettors in India is the fact that depositing to foreign bookies is extremely difficult. Typically, the majority of users deposit to online bookies using Moneybookers or Neteller. Some attempts to deposit using a Visa or MasterCard may fail. The same is true of online bank transfers. In order to circumvent these blocks, savvy internet users have started to use e wallet services for depositing. These services, enable users to fund an online betting account in Rupees. This is important because it avoid legal issues that may have arisen out of F.E.M.A Foreign Exchange law.
See also[edit]
References[edit]
- ^'Goa casinos contribute Rs 135cr revenue in 2012-13 - Times of India'.
- ^Reddem, Appaji. 'NRI bets on Andhra Pradesh, moots casino on the Krishna'. The Hindu. Retrieved 20 February 2017.
- ^'The Public Gambling Act, 1867'. www.indiankanoon.org.
- ^Sayta, Jay (January 1, 2012). 'LEGALITY OF POKER AND OTHER GAMES OF SKILL: A CRITICAL ANALYSIS OF INDIA'S GAMING LAWS'(PDF). NUJS Law Review. Archived from the original(PDF) on November 2, 2013. Retrieved January 3, 2015.
- ^Patil, Ajit (28 May 2009). 'Casinos in India'. India Bet. Archived from the original on 9 April 2011. Retrieved 28 October 2009.
- ^'Casinos want to gamble on Visakhapatnam'. Deccan Chronicle. 3 November 2014. Retrieved 6 November 2014.
- ^http://threezly.com/groups/indian-supreme-court-to-rule-on-legality-of-rummy-and-poker/members/
- ^Sanjay, Roy (27 October 2009). 'Indian online gambling market set to open up'. India Bet. Retrieved 28 October 2009.
- ^Thompson, James (27 October 2009). 'Betfair and William Hill target India'. The Independent. Retrieved 28 October 2009.
- ^'Sports Betting Favoured by ICC'. CasinoOnline.net.in. Retrieved 8 August 2011.
- ^Ashok, Donnie. 'Jay Sayta, Founder Glaws.in, on how he became an authority in Gambling Laws'. Superlawyer.in. Superlawyer. Retrieved 2014-12-21.
Online Gaming/Gambling laws in India prohibit betting or wagering and any act which is intended to aid or facilitate the same. Gaming/Gambling being a State subject, gaming/gambling in India have laws which differ from state to state . This would mean what is permitted in one State may be an offence in another. The Public Gambling Act, 1867, is the central enactment on the subject, which has been adopted by certain states of India like Uttar Pradesh, Punjab, Madhya Pradesh etc. The other States have enacted their own legislation to regulate gaming / gambling in India activities within its territory. It is to be noted that State Legislations have been enacted prior to the advent of virtual / online gambling in India and therefore references of gaming/gambling in India, in respective state legislatures are in relation to physical premises only, barring Sikkim and Nagaland which are the only States who have introduced regulations pertaining the online gaming.
Pa Legal Gambling Age
After going through the State gambling laws for online gambling in India, it is found that, except the State of Orissa and Assam, most of the States have excluded ‘games of skill’ from applicability of its respective gaming/gambling laws. Further, playing certain games including ‘Poker’, both online and offline, is permitted under the laws of West Bengal, Nagaland and Sikkim subject to licence from the appropriate State Authorities. But this would be applicable only in the territorial limits of the respective State. In Goa, gambling is permitted only in Government permitted places operated as casinos.
The issue of online gambling in India laws in India still remains a grey area which is yet to be adjudicated by Courts of India. Having said that, necessary inferences can be drawn from orders passed by the Court while deciding the issue of whether a particular game is a ‘game of skill’ or a ‘game of chance’. But the issue of whether a ‘game of chance’, if played like a sport without stakes amount to gambling or not? still remains largely undecided.
Game of Skill v. Game of Chance:
There has been a substantial discussion by Supreme Court and High Court on what constitutes a ‘game of skill’ and a ‘game of chance’. What is adduced from the judgments is that a game where there is preponderance of skill over chance is a ‘game of skill’ and vice-versa.
By taking the above ratio into account, SC in the matter of State of AP v. K.Satyanarayana(1968) held the game of Rummy to be a ‘game of skill’. However, the Court in its judgment has indicated that if there is gambling or if the gambling house is making profit from the game of rummy, then it could amount to an offense under the laws of AP. It was further observed by SC that the three card game which goes under different names such as flush, brag, etc. is a game of pure chance. This was relied upon by SC in another its other judgments viz. M.J.Sivani v. State of Karnataka (1995) and Dr. K.R. Lakshmanan vs State Of Tamil Nadu And Anr (1996).
The issue of whether rummy if played with stakes amounts to gambling or not has not been decided by Supreme Court. However, Andra Pradesh High Court in D. Krishna Kumar And Anr. vs State Of A.P.(2002) (Annexure-2) relying upon the SC decision of 1968 held that till such time the state gambling Act is amended to lay down that playing Rummy with stakes is 'gaming', playing Rummy with stakes is not 'gaming' within the meaning of the Act and is therefore allowed.
Delhi District Court: Gaussian Network Pvt. Ltd. Vs. Monica Lakhanpal
The issue of Online Gaming/gambling laws in India was discussed in detailed in the above case when the issue was put up before the Court under Order 36 Rule(1) of CPC by the parties. The Court held the following:
- Game of skills, if played with stakes does not amount to gambling;
- Playing games of skill for money is only legal in the real form, online games cannot be compared to real games;
- Attracting business or enticing players by alluring them with prize money is illegal;
- Gaming sites partaking a slice on the winning hand are illegal as they amount to a virtual gambling house.
Having said that, the said ruling was rendered infructuous as during the final arguments in the Revision petition, parties sought to withdraw the petition. So the effect being there is no ruling which can be treated as a precedent as regards online gambling.
Gujarat High Court on Poker:
The issue whether Poker is a ‘game of skill’ or a ‘game of chance’ was never discussed in detail by any Court in India until the recent decision/order dated December 4, 2017 passed by Gujrat High Court in Dominance Games Pvt. Ltd. V. State of Gujarat, wherein, the said issue was extensively pondered upon. The Court in its said decision held that Poker is a ‘game of chance’ and therefore amounts to gambling under Gujarat Prevention of Gambling Act, 1887. While arriving at the aforesaid decision, the Court inter alia observed the following:
- That the game of poker originated from ‘flush’ or ‘Indian teenpatti’ which has been observed by SC as a game of chance in its 1968 judgment and consequently, as a corollary, the game of poker is also to be construed as a game of chance;
- The game of poker involves a process wherein the players have no control or say on the cards received by them and the final outcome is based on mere luck or chance depending upon how the cards are received by the player. Poker face to bet, would be a part of bluffing or deception and the so-called strategy, cannot be considered as a skill. The outcome also depends on the ability of a player to spend money and how deep are his pockets. It is a game of deceiving, bluffing and duping other players;
- The game of Rummy is different than Poker. While poker involves betting or wagering, rummy has nothing to do with stakes and betting or wagering is not essential to the game of rummy;
- The Court while noting the ills of gambling and impact of gambling on the moral fibre of society noted that ‘one must not overlook the ground realities in India or the country like India, where the majority of the population is struggling for the basic necessity and there is lack of awareness amongst the people and if they are permitted by betting in the craze of easy money, they do not know what to do if the things go wrong.’
Mr. K.N Suresh, Secretary of Indian Poker Association has filed an appeal against the said order, being Letters Patent Appeal No. 2625 of 2017 before the Division Bench of Gujarat High Court. The bench after hearing the matter briefly on December 28, 2017 issued notice to the state government and other respondents, and till date the matter is not heard finally. Having said that, since no ad-interim/interim reliefs are granted presently, the Single Judge order stands valid and enforceable.
Though the order does not specifically make any observation on Poker, if played as a sport and/or without stakes, however, while differentiating between rummy and poker, the Hon’ble Court at para 60 of the said order makes a presumption that wagering or betting is an inseparable part of the game of poker and therefore would involve stake. The Court while holding Poker to be a ‘game of chance’ has also predominantly relied upon moral religious and social grounds. In the absence of the said order being overruled and the issue being addressed specifically, the game of poker, even if played as a sport and/or without stakes remains a grey area which is then left at the discretion of police authorities.
POSITION:
Though the issue of Poker was considered by Gujarat High Court in view of the provisions of Gujarat Prevention of Gambling Act, 1887, in arriving at the decision of Poker being a ‘game of chance’, the court made several observations like how the game is played, origin of the game, reference to ancient Indian literature, moral and religious grounds, etc. which may be applied by other states/state machinery having similar gambling laws. The issue is likely to be clarified by Division Bench of Gujarat High Court, once the appeal is finally heard.
Legal Gambling Age Indian Casinos
In view of the above, it is clear that if a game is considered to be a ‘game of chance’ under the state laws and rulings by the Courts and is played with stakes, would constitute gambling under the respective state laws with exception pertaining to a few states as mentioned above. If an entity is able to show that a particular online game or a particular on-ground gaming activity has preponderance of skill over chance and/or is played as a sport without stakes, it may fall within the exception of gaming/gambling under the state gambling laws. It is pertinent to note however that if online gaming is illegal in any State, the promotion of the same in such State would amount to violation of ASCI Code as well as Cable TV Network Regulation Act, 1994.
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