A Comparative Guide to Gambling in India

1. History of and overall attitudes to gambling

1.1 How prevalent are different types of gambling in your jurisdiction? For example, does the current law reflect: (a) Religious or moral objections to gambling? (b) A permissive approach which also seeks to address the social consequences of gambling? and (c) The promotion of gambling as an ‘export' industry?

(a) Religious or moral objections to gambling?

Traditionally, India has been opposed in principle to gambling yet gambling has existed in Indian society since ancient times. A multicultural society, India finds its base in many religious and philosophical theories – both from mythology and sacred texts. Most of the time, gambling has been considered a vice and not entertainment. Modern forms of online betting have, however, built their own clientele, with operators leveraging such means as match deposit bonuses to entice patrons to bet and play. These bonuses are lovely promotional tools to encourage players to deposit more money into their accounts by giving them a bonus on top of their deposit; however, they often come with certain wagering requirements.

(b) A permissive approach which also seeks to address the social consequences of gambling?

Gambling and betting are governed by Entry 34 in List II or the State List of the Seventh Schedule of the Constitution of India. This gives individual states the power to legislate betting and gambling laws. Most states have adopted the framework of the Public Gambling Act, a pre-independence piece of gambling legislation enforced by the British Empire. The PGA prohibits all forms of gambling and running gambling houses, but makes an exception in the matter of games of skill, with particular reference to betting on horse races. The betting of skill games has, therefore, not been classified under gambling. While most states have adopted PGA without any major changes per se, some states have been liberal, allowing various types of gambling activities within their jurisdictions under different licensing systems. Such states are Goa and the Union Territories of Daman and Diu, Meghalaya, and Sikkim. To prevent unregulated gambling, the laws of Goa, Meghalaya and Sikkim provide, among other things:

  • Gambling can be offered only under a license; and
  • Licensees must comply strictly with the conditions under which the license was granted, and failing to do so could result in penalties and fines.

(c) The promotion of gambling as an ‘export' industry?

Currently, Indian laws give no consideration to promoting gambling as an "export" industry. However, in light of the ever-increasing popularity of online gambling platforms concomitant with match deposit bonuses and other incentives, the international interest has been piqued regarding the gambling landscape in India. Such developments throw up a debate about whether gambling can be considered a possible export industry, especially in its online version and on the ground, wherein a global audience is drawn to it.

2. Legal and regulatory framework

2.1 Which legislative and regulatory provisions govern gambling in your jurisdiction?

Before the Constitution was enacted, the Public Gambling Act was the law that primarily controlled the conduct of betting and gambling. After independence, most states adopted the provisions of the PGA in formulating their state betting and gambling laws and amended it to correspond with local social norms. The PGA prohibits gambling in all forms and the running of gambling houses. The Act, however, provides for an exception: skills games do not come within its restrictions. These are: - States and, Union Territories have their own gambling laws:

  • Andhra Pradesh: Andhra Pradesh Gaming Act;
  • Arunachal Pradesh: Arunachal Pradesh Gambling (Prohibition) Act;
  • Dadra and Nagar Haveli: Bombay Prevention of Gambling Act;
  • Delhi: Delhi Public Gambling Act;
  • Goa and Daman and Diu: Goa, Daman and Diu Public Gambling Act;
  • Gujarat: Bombay Prevention of Gambling Act;
  • Karnataka: Chapter VII of the Karnataka Police Act;
  • Maharashtra: Maharashtra Prevention of Gambling Act;
  • Nagaland: Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act;
  • Meghalaya: Meghalaya Regulation of Gaming Act;
  • Rajasthan: Rajasthan Public Gambling Ordinance;
  • Sikkim: Sikkim Casino Games (Control and Tax) Act and the Sikkim Online Gaming (Regulation) Act;
  • Tamil Nadu: Tamil Nadu Gaming Act;
  • Telangana: Telangana Gaming Act; and
  • West Bengal: West Bengal Gambling and Prize Competitions Act.

2.2 Which bodies are responsible for regulating and enforcing the applicable laws and regulations? What powers do they have?

The regulatory authorities in different states and union territories are as follows:

  • Goa: The Commissioner of Commercial Taxes acts as the Gaming Commissioner.
  • Daman and Diu: The Director (Tourism) of Daman and Diu regulates casinos.
  • Meghalaya: The Commissioner of Taxes or any officer authorized by the state government adjudicates offences under the Meghalaya Regulation of Gaming Act and the Meghalaya Regulation of Gaming Rules.
  • Nagaland: The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act designates the Finance Commissioner of the state as the ‘Licensing Authority’ for online skill games.
  • Sikkim: The regulatory authority under the Sikkim Act (for issuing licenses for online games provided within the state-wide intranet of Sikkim) and the Sikkim casino laws (for issuing licenses for casinos) is the authorized officer under the Finance, Revenue, and Expenditure Department of the Government of Sikkim.
  • West Bengal: Permits for conducting games of skill in public places are issued by the Commissioner of Police.

These regulators have the power:

  • To issue licenses to gaming operators subject to various conditions; and
  • To adjudicate offences under the relevant gaming legislation.

The regulators may also suspend and/or revoke licenses issued to operators in case of noncompliance with the provisions set forth in the relevant gaming legislation.

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