Betting Laws in India: Is online betting legal in India?

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India is the home to millions who are deeply connected to the world of sports. Their attachment to sports like cricket extends beyond just watching matches, as a growing number of individuals are turning to betting on the game.

The activity has been on the rise in recent years, as several individuals seek betting opportunities for excitement or handsome returns. However, it is time to ask the question ‘Is betting legal in India?’ as its popularity skyrockets.

Gambling in India is regulated only through the Public Gaming Act of 1867. It becomes evident that this gambling law alone is not sufficient to monitor the activities of online casinos or sports betting as these were simply non-existent during the days when the Internet did not exist. The Information Technology Act of 2000 does provide some regulation into the world of online activities, but it does not mention sports betting or other forms of online gambling.

Is online betting legal in India? It is important to understand the legal framework for betting in India before trying to proceed with the same.

Legal Landscape of Betting in India

The prohibition to set up online casinos in India comes down to the Public Gambling Act of 1867. This act prohibits any form of gambling involving dice, tables, cards, and similar aspects even within a confined room.

 It also prohibits the use of instruments that can facilitate such a gaming prospect. This act has widespread implications as it even limits the possibility of on-street gaming amongst others. However, the act does not mention online establishments, as the act was set up at a time when the Internet was not around.

Game of Chance vs Game of Skill in Gambling: Understanding the Difference

There have been plenty of amendments to the Public Gambling Act in recent decades. More recently, the Indian judiciary has tried to come up with a demarcation of “game of skill” and “game of chance”.

The Supreme Court has claimed that certain card games like “Teen Patti Flush” are purely a game of chance. However, there are games like ‘Rummy’ which involve the player having some level of skill, as strategic holding of cards along with memorising the card sequence has a big impact on the success ratio. At the same time, the Supreme Court has acknowledged that any game that involves the dealing and shuffling of cards comes with an inherent element of luck and chance.

India is a vast country with states acting in their interests as per the local laws on several matters. This diversity applies to the world of gambling and the laws that govern the industry vary from one state to another in India.
 The states of Uttar Pradesh, Madhya Pradesh, and Delhi have decided to go with the Public Gaming Act as the default law to govern the online gambling industry. However, they have made some amendments to the act. This approach is completely different from the likes of Goa and Sikkim, who have gone with their own set of rules for the same.

Which Indian States have Banned Betting?

The local state governments have decided to act on gambling issues in states like Telangana, Andhra Pradesh, and Tamil Nadu. Any form of online gambling is completely banned in Tamil Nadu and Telangana following recent amendments in 2022 and 2017 respectively. The present answer to the question of ‘Is online betting legal in India?’ can be very flexible due to some states deciding to go against coming up with a complete ban.

Telangana decided to make amendments to the 1974 act that governed gambling. It was one of the first states in modern times to come up with a clear answer to the debate of ‘Is gambling legal in India?’.

There have been no major protests against the call from Telangana. Tamil Nadu took a similar approach in 2022 but they faced setbacks by a verdict from the Madras High Court a year later.

Which Indian States have Partial Access to Betting?

The states like Odisha have decided to go with a complete ban on online gambling while allowing certain fantasy games to continue operations. Nagaland follows a licensing regime that permits online skill games alone. There is a prohibition on any form of gambling.

Meanwhile, Goa is seen as one of the big destinations for those who put forward the question of ‘Is betting legal in India?’. This state has long been in favour of online gambling and it even permits the operation of physical casinos. There are more than 10 physical casinos in Goa with a majority of them operating on offshore vessels.

Sikkim also decided to answer the question ‘Is gambling legal in India?’ by making it legal in 2022. The state is also one of the few places in India to have accepted online lotteries. One of the key requirements – placed upon by states where online casinos are accepted – is the use of Indian currency.

Legal Landscape and Debates: Madras High Court’s Verdict on Online Betting in Tamil Nadu

The online gambling industry has witnessed several landmark legal cases in response to the question of ‘Is online betting legal in India?’. The chief among those landmark legal cases would be the ruling from the Madras High Court to strike down online gambling completely in Tamil Nadu. This verdict in 2023 is likely to be the benchmark going forward.

Tamil Nadu prohibited all forms of online gambling in 2022 but the verdict from Madras High Court cleared poker and rummy from such prohibition. The verdict from the Madras High Court was under the assumption that rummy and poker were games of skill and not games of chance.

The Indian legal community has been trying to find an amicable solution to the existence of online gambling, as it provides significant positives to society as a whole. However, the string of bad news related to some gambling entities like rummy has led to public displeasure regarding betting in general. However, it should be remembered that the industry gambling can have a significant impact on the GDP of the country and several states.

This industry has been growing at a 27% CAGR and it can potentially add in excess of $ 300 billion to the GDP by 2027. This impressive growth rate has been driving the debate of ‘Is gambling legal In India?’ and it will continue to do so in the near future.

Impact of Betting Laws on Society: Pros and Cons

The impact of betting on the social and economic aspects of a society can be tremendous and India is no exception. There are plenty of positive elements about gambling like the added tax revenue available for the state. This can have a significant positive stimulation on the financial status of the state.

This better financial situation can act as a stimulus for new opportunities that can create a lot of jobs. It also acts as a big source of entertainment and a distraction from the mundane life for many individuals.

The negative implications are also tremendous, as people might get addicted to gambling. There is a case for witnessing increased crime, but the disruption to social life is largely negligible compared to the positives. One of the big areas where betting laws – designed to respond to the ‘Is betting legal in India?’ query – need to have a major impact is on the compliance and regulatory segment.

The current laws – created to answer the question ‘Is gambling legal in India?’ – have been able to alleviate the gambling problem to a great extent while also providing consumer protection. In places where the industry has been legalised, a significant jump in the tourism and social economic status of individuals has been identified. The key reasons to regulate betting are:

Protecting people from gambling addiction
Improving tax revenues for the government
Reducing instances of illegal gambling
Protecting the integrity of sporting events
Stopping instances of match-fixing
Offering a secure platform for gambling on various sports
Reducing instances of money laundering

Conclusion: The Future of Betting in India

Sports betting is still in a very grey area when it comes to its legality in India. A handful of states have gone ahead to respond to the question of ‘Is betting legal in India?’ by legalising legalised some elements. Gambling activities like online casinos and sports betting are legal in some destinations, but a vast majority of the states are yet to take a clear stance on the same.

The Indian betting market has witnessed a sharp rise in interest among the general public. More people are now asking the question ‘Is betting legal in India?’. India has yet to come out with official laws that regulate the industry, but making this change can have a positive influence on reducing the volume of illegal activities while also adding to the state coffers.

Until such laws are passed, however, it is important to exercise caution when it comes to online sports betting and casino gaming in India. This caution applies to elements like the license used by a sportsbook to the type of bonuses that are being promoted.