Online Gaming Laws In India

Indian Legal Landscape Of Online Gaming. Gaming sector comprises of 2 significant parts – online skill-based games (casually or socially) and gambling. Gambling activities are simply referred to as Gaming in the eyes of Indian laws. Betting and gambling have been included as subject-matter for legislation under 7th schedule of Indian. Online gaming with stakes or real money is allowed in most of the states of India. Therefore, unless specifically prohibited by the state government, it is not prohibited. Online games with stakes/ real money cannot be played in whole of India as the laws of the states of Assam, Odisha and southern State of Telangana specifically prohibit.

The general consensus by millions of Indians is that gambling is banned throughout the country. If you ask them to share information about the gambling laws and regulations in India, they will not be in a position to do so because a lot of them don’t know where to find information relating to gambling laws and regulations.

There is a law in India that says it is illegal to fund online gambling sites without using Rupees. This law is called the Foreign Exchange Management Act. If you are to place a bet at an online bookmaker or gaming site you need to do so in Rupees. Online Gambling in India The Public Gaming Act of 1867 makes no reference to online gambling. This is no surprise, given that the internet was a long way from being invented when it was introduced. Form of online gaming that has transformed physical sports into virtual sports, e-games, e-sports, online games, fantasy sports, etc. As on date we have no dedicated online gaming and online gambling laws in India. Similarly, we have no dedicated fantasy sports law in India till now. This is in line with the exiting game laws like online poker.

Some of them know where to look but find it too time-consuming and confusing to read legal jargon and interpret what it means for them. Thus they are content to accept the general consensus that gambling is banned in India and any form of gambling that takes place is illegal gambling.

BettingGuru wanted to bring more light to gambling laws and regulations in India, so our team of experts has researched and studied Indian gambling laws and simplified them into modern day language that makes it easy for everybody to understand them clearly.

Current State Of Gambling Legislation in India

The current state of gambling legislation in India is archaic to say the least. Gambling legislation is outdated in India and is in urgent need of an overhaul. The reason most Indians believe that gambling is illegal in India is because you will not find any casinos or gambling houses in the country with the exception of three states.

Goa, Sikkim and Daman are the three states in India to have a legalized casino industry. Sikkim and Daman are very small states and the average Indian on the street may not even list them as states.

Goa on the other hand is one of the most popular states in India and has a thriving land based and offshore casino industry. However, the state government is Goa has been under pressure for the last few years to shut down the gambling industry and recently yielded to some of that pressure by not allowing locals to enter these casinos from Feb 2020.

The Indian gambling industry is governed by The Public Gambling Act of 1867 and pro-gambling groups are pushing for legislators to change this law. The Information Technology Act 2000 regulates online websites in India but does not specifically use the word gambling or betting in its list of prohibited sites.

The Public Gambling Act of 1867

The Public Gambling Act of 1867 prevents casinos and gambling houses from operating in India. If a company or a business if found violating this law, they will be subject to a fine of ₹200 or go to prison for a period of 3 months.

The law is also applicable to players who visit these illegal gambling establishments. If they are found inside these illegal establishments, they will be subject to a fine of ₹100 or face prison for a period of 1 month.

Gambling advocates have tried for years to get the central government to review the Public Gambling Act of 1867 and amend it so that it is appropriate for the times that we now live in. However, legislators have been reluctant to review this gambling act and make changes for a number of reasons.

The most sensitive reason for not meddling with the Public Gambling Act of 1867 is because gambling is considered taboo in India and offensive to multiple religions. Since India is a very religious nation, the ruling party wants to make sure that it does not offend the religious feelings of millions of Indians as it could end up hurting their vote bank.

Some of the other reasons for sticking with the Public Gambling Act of 1867 include considering gambling a social evil and forbidding players to engage with games of chance.

Games of Skill vs. Games of Chance

The Public Gambling Act of 1867 prohibits games of chance from taking place because games of chance are based on luck. Games of skill, on the other hand, are allowed as these are based on the mental faculties and physical abilities of the players involved.

So a game of cricket can take place in front of thousands of cricket fans and be broadcasted to millions at home because it is ruled a game of skill. A game of rummy or poker on the other hand cannot be played for money as the law considers card games as games of chance i.e. based purely on luck.

During the last few years, there has been a special push by a number of groups like the National Indian Gaming Association (NIGA) to educate legislators on the differences between games of skill and games of chance. The game of poker has been used as an example to prove that it is a mind sport just like the game of chess.

While the campaign to push for certain games like poker to be reclassified as a game of skill has gained momentum, it has not brought about any results. Legislators are more open to the possibility today but are hesitant to pull the trigger and legalize gambling due to a potential backlash.

State Legislation

While the Public Gambling Act of 1867 governs gambling throughout the country, each state has the authority to form their own legislation and legalize gambling. This is why Goa, Daman and Sikkim have a legalized gambling market.

There are a number of states including Mumbai and Kerala who are considering legalize gambling in their respective states. State governments have realized that legalizing gambling would create a very lucrative industry as it would generate employment opportunities, bring in huge financial investment, increase tourism numbers and provide a steady stream of gambling taxes for the state coffers.

Nagaland, a small state in the north-east of India decided that it would pass a new law that would allow online games to be legalized. Bettors are allowed to place bets on online casino games as long as they fall under the category of games of skills. The Nagaland Prohibition of Gaming and Promotion and Regulation of Online Games of Skill Act, 2016 (Gaming Act) updated the terms and conditions for games of skill and games of chance – thereby opening a new stream of revenue in the state.

For land based or online gambling to spread throughout India, it will require one of the four big states to make a decision and pave the way for the rest of India. Maharashtra, Karnataka, Tamil Nadu and Delhi have toyed with the idea but have put it on the back burner for now.

Online Gambling

Since land based gambling is banned throughout India with a few exceptions, most Indians automatically assume that online gambling is also banned. This is not true and in effect, the online gambling industry in India is growing at a rapid pace with every passing year. There are a number of offshore iGaming operators who have entered the Indian market and are offering a variety of online betting services which include online casino games, lottery games, sports betting, e-sports, daily fantasy sports and live dealer casino games.

The key point is, that it is not illegal to register and place bets at these online gaming websites as long as they are not based in India. Just remember that there are a lot of good online casinos out there but there are a lot of bad casinos out there as well. By bad, we mean unscrupulous casinos that prey on players and take advantage of them.

BettingGuru has a great list of online casino websites that are safe for Indian players. Our team has reviewed these sites and use strict selection criteria to ensure that we offer safe and secure online casino recommendations to our Indian players.

The Information Technology Act, 2000

The Information Technology Act 2000 is a central act that governs all online activities in India. The Act does not specifically use the word gambling or betting and hence a number of iGaming providers have entered the market due to the language used in the Act. The language allows both pro-gambling and anti-gambling groups to interpret this law based on their own assumptions.

The Supreme Court was approached to make a decision and bring clarity to the language used in the ACT but the Court decided to pass on the matter. So the decision is now left to individual states to determine whether they want to allow online casino games and betting or not.

The state of Maharashtra took the decision to pass its own gambling legislation to clear things up. The “Bombay Wager Act” was passed and it specifically stated that online gambling is an offense in the state.

If a company is caught offering online gambling services in India, they will slapped with a fine of 90,000 rupees. This rule has been in place since 2009.

Offshore Gaming Sites Flourishing

There are a number of reputed and licensed online gambling sites currently catering to the Indian market. BettingGuru features the best of these online casino sites as they are legal and safe for Indian bettors to play at. This is because we list only offshore casino sites as they are not based in India. We look for offshore casinos and sportsbooks that are licensed by reputed regulators like the UK Gambling Commission and the Malta Gaming Authority.

You will not find any online casinos or sportsbooks licensed by an Indian gaming regulator as none exists. If you find a site claiming to be licensed by an Indian gaming regulator, you need to be careful as it is a false claim.

BettingGuru’s list of recommend online casinos allows Indian bettors to make their deposits and withdrawals in Indian rupees (INR) in keeping with the Foreign Exchange Management Act 1999. This ensures that players do not violate any laws either on the gaming front or the foreign currency front.

The Legal Status For Games Like Poker And Rummy

Since each individual state has the option to legalize or ban land based and online gambling, there is some confusion as to what games are allowed and which states allow them. Some of the common questions of Indian players include: is rummy legal in India, is cricket betting legal in India, is poker legal in India, is sports betting legal in India and are online casino games legal in India.

We decided to put together a quick overview to help you understand what games you can play and in which states you can play them:

Casino games are allowed in Goa, Daman, Sikkim
Poker is permitted in Karnataka, West Bengal, Nagaland
Fantasy sports betting is permitted in most states as they are viewed as games of skill
Lottery is banned in most states but a few states have a state wide lottery such as Sikkim. Punjab has a licensed online lottery.

Online casino games and online sports betting are permitted as long as players are betting at offshore casinos who allow players to deposit and withdraw funds in Indian rupees.

Frequently Asked Questions

The Information Technology Act 2000 does not have the words gambling or betting included when it comes to prohibiting internet activities. Hence, offshore casinos have used this ambiguous language to launch online casino and sports betting services for the Indian market. Players who bet at these offshore casinos are not breaking the law or committing a crime.
There is a huge push at state level and central level to get legislators to rethink archaic laws such as the Public Gambling Act of 1867 and the Information Technology Act 2000. Gambling advocates are pushing for both land based and online gambling to be legalized. The latest push came from MP Shashi Tharoor in 2018 when he introduced the Sports (Online Gaming & Prevention of Fraud) Bill, 2018 to the Lok Sabha.
You do not need to pay any taxes to the online casino or sportsbook. However, you will have to pay taxes on your income and it will be up to you to declare and file your taxes accordingly. Do note that some payment providers like PayPal will be without a GST fee when doing your transfer.
Gambling for money is prohibited in India and the few states that permit gambling allow the activity to be done only at licensed premises. So technically you should not play a real money poker game in India. However, a lot of families play poker and bingo for small stakes to pass their time and do not get in trouble with the law. If you start hosting regular real money poker games and inviting people apart from the members who reside in your house, you could end up getting in trouble with the law.
This will depend upon the terms and conditions followed by each sportsbook. There are limits in place as some sites have reported suspicious activity when large sums of cash where bet on certain cricket games. They found that bookies in India were placing bets on behalf of hundreds of bettors from one account. The minimum amount can be from 100 to 500 rupees while the max amount can go up to 50,000 to 100,000 rupees.

Update:Pokerstars is already said to be eyeing the country and have begun marketing efforts for play money Indian players by using Diwali.

Yes. This is one of the most commonly asked questions from bettors in India, but also from operators looking to tap into the 1.25 billion people and the largest growing middle class. As with all legal questions it is difficult to answer as India believes gambling to be “taboo” and many legalities and loopholes exist. Indian states are also actively seeking to legalize the gambling business. Let me give you a break down of the laws that have occurred over the latest years. First, if you just want a site then look below.

Where Indians Bet Online

BET365.com – This is the main destination for punters from India who want to bet online. They have been successful in this small market because they allow you to bet with Rupees, and offer other methods to fund your account legally. It’s also probably the safest bookmaker out of the UK to service India. Before betting, we recommend you familiarize yourself with the most simple cricket betting strategies as it is the most bet on sport in India.

Federal Information Technology Rules

This was the most recently introduced law by Indian government. As you can see by the title, it covers a vast array of anything on the internet in which they consider to be either illegal or taboo. Please note, there were no laws that actually made it illegal to allow online gambling by the states of India. Ok, so this FIT Act basically says if something is illegal or taboo the Internet Provider (ISP) must block such site. Can anyone say China? This type of censorship simply doesn’t work and hasn’t scared away people from India from betting online. They did the same in China and other Asian countries and it didn’t work which is why the USA uses different tactics to block betting so I’m not sure what they’re trying to accomplish.

Let’s go a little more in depth to this law.

Gambling: Firstly it says “gambling” is illegal and therefore should be blocked. Gambling is the act of wagering on something where the outcome is uncertain, or is not a game of skill. Well the word gambling covers just about everything you place a bet on and many forms of gambling are skill.
Poker: Ok so now we have to look at poker. It has been proven by many professionals and gaming experts that poker is in fact skill. There is no such evidence proving otherwise but many governments simply turn the other way and put online poker into “gambling”. Poker is skill, and skill games are NOT illegal in India.
Sports: Online betting on sports can also be singled out. Sports bettors all over the world make a living on sports betting. Some people have it down to such a science that bookies won’t even take their bet, or because the bettors are so good they can actually change the odds by how much they wager! Sportsbetting is skill, therefore, should it be covered under “gambling”?
Casino: Online casino games are one form where it can actually be considered gambling. Fortunately, for the way India’s laws are written it gives states the ability to allow what they want. This is why you see Sikkim offering games online such as horse betting and online lotteries.

Online Gaming Industry In India

Skill or Gambling; Anything we do in life can be based on luck or skill. As the saying goes, “you prepare yourself to get lucky”. Governments who preach that something is gambling or skill simply need to quit that as it leaves too much left for interpretation. If they want everything to be black and white they need to say ok, poker is skill, casinos (per game) are not and so on. Either way it is up to the states so this newly imposed website blocking will fail, there are too many ways around it.

The Public Gambling Act of 1867

That’s right my fellow Indians, we still have government trying to impose laws on us that happened before online betting even existed. The internet was no where near being invented when this law was passed, and yet many government officials try to point to it and say, hey look here, we DO have laws that make online betting illegal. False. Let me reiterate again, this is a Federal law and Sikkim allowed online betting after and during those past years. IT IS UP TO THE STATES, not outdated laws!

Online Gaming Companies In India

The Government Wants Legal Online Betting

Firstly, the government says they want legal online betting in India because it would curb corruption with illegal bookies that have supposedly used match fixing to fund terrorism and crime. While this was the case, it is simply a front to put forth online gambling so that they can tax the heck out of it. The Internet Cricket Council (ICC) has been urging India to allow offshore companies such as those located in the UK to partner up with casinos in India to get a proper form of internet wagering in place. This is the complete opposite of the USA and the National Football League’s views which strictly want betting banned. This would allow for taxes to be collected, a watchdog for suspicious actives, and lastly allow India’s punters to do what they already do…. to the sum of 8,000 Lakh Rupees.

Funding Option Laws To Consider (FOREX LAW)

There is a law in India that says it is illegal to fund online gambling sites without using Rupees. This law is called the Foreign Exchange Management Act. If you are to place a bet at an online bookmaker or gaming site you need to do so in Rupees. Only a few sites take Rupees in which you can fund and withdraw via the same currency so most players from India simply choose to use and electronic wallet. Examples of the most popular ones are Moneybookers, Paypal, and Neteller.

Unless an online betting site specifically blocks players from India, which is pretty rare, you can pretty much play anywhere you want. This puts this law out of business so to speak and for most it’s not an issue! The only thing gamblers from India have to worry about is if the major bookies or betting sites decide they have to leave India in order to get a full fledged license to advertise and operate in India in the future once it is completely regulated and legal.

Conclusion on Online Gambling Laws in India

Online Gambling Laws In India

As you can see there are too many holes in the governmental India betting laws. With a growing middle class, a huge population, and surrounding casino giants looking to make a stand in India it is only a matter of time before online licenses are given out to betting firms offshore to fully allow online betting in India (not that it doesn’t go on now)! For continued updates please following our sister site at www.onlinebetting.in or begin betting at Bet365.com.