Regulating Gambling in India

Posted by on18 Jul, 2022

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Bibliography

  1. The impact of gambling on rural communities worldwide: A narrative literature review – Rural Mental Health, April 2015; DOI: 10.1037/RMH0000030
  1. Gambling emerging as a major passion in India; biz of casinos alone accounts for Rs 500 cr – The Economic Times, 12 October, 2013
  1. State/UT wise Aadhaar Saturation – Unique Identification Authority of India, 31 May, 2020
  1. Gaming in India: An Evaluation of the Market’s Potential, a White Paper – Global Market Advisors, 2016
  1. Andhra Pradesh bans online gaming, betting platforms – The Hindu, September 4, 2020
  1. Is India’s middle class actually poor? – BBC.com, 15 November 2017
  1. The prevalence, patterns, and correlates of gambling behaviours in men: An exploratory study from Goa, India – Urvita Bhatia et al, Asian Journal of Psychiatry, June 2019, vol. 43; DOI: 10.1016/J.AJP.2019.03.021
  1. Skill Gaming in India. The changing landscape – A Deloitte joint report with the Rummy Federation of India, July 2018
  1. Online gaming industry in India is expected to grow at a CAGR of 47% by FY22 – The Financial Express, May 26, 2020.
  1. SDG India Index & Dashboard 2019-2020 – NITI Aayog
  1. National Family Health Survey (NFHS-4) – Indian Ministry of Health and Family Welfare, 2016
  1. Digital in India – a report by the Internet & Mobile Association of India (IAMAI) and NIELSEN, 2019
  1. Maharashtra looks at proposal to legalise online betting, mop up Rs 2,500 crore – The Times of India, September 19, 2020
  1. Online gaming in India: Reaching a new pinnacle – A study by KPMG in India and Google, May 2017
  1. Proprietary site analytics data and traffic reports – www.sevenjackpots.com, ENV.Media

Online Gambling in India

The popularity of online gambling in India has grown exponentially since the industry's emergence over the past decade or so, with around 80% of Indians gambling at least once a year, be it on sport, slots or casino table games. Although the Indian gambling market is estimated to be worth US$60 billion per year, around half of this is said to be illegally bet.

Widely different takes on the reach of the law and the fast developing world of online gambling both contribute to the confusion surrounding the legality of certain gambling activities. Here is an overview of gambling in India which will hopefully help those who remain slightly perplexed.

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So, is online gambling legal or illegal?

Based on the above elements, India is a grey area when it comes to gambling laws and your best bet is to look at specific state laws about how gambling activities are treated. There are some interesting facts that are also conflicting. For example, horse betting is legal in the country since bettors need to possess prior skill to place these bets. However, at the same time, lottery is also legal which might not seem logical based on these rules. This kind of gambling is permitted in several states around India including Assam, Arunachal Pradesh, Maharashtra, Goa, Kerala, Punjab, Madhya Pradesh, Mizoram, Manipur, Meghalaya, Nagaland, West Bengal, and Sikkim.

According to the Public Gambling Act of 1976, the states of Goa, Nagaland, Sikkim, and Daman have banned traditional brick-and-mortar casinos and online gambling. Based on the Prevention of Gambling Act of 1887, gambling is also illegal in Maharashtra. However, e-gaming or luck games, as they are considered in the states of Nagaland and Sikkim, are allowed in these territories. On the other hand, skill games are legal in Arunachal Pradesh and Telangana regions based on the State Gaming Act of 1974.

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Advantages of Gambling Apps

The mobile client has certain advantages, due to which it can be recommended to download every gambler who plays from a phone/tablet. The main advantages are as follows:

  • The functionality and assortment are similar to the desktop site. Slots, table games and lotteries can be launched in a couple of taps.
  • Stable work even on older devices. For comfortable use of the casino, the client does not require powerful hardware. In most cases, for a stable operation of the program enough 1 GB of RAM and CPU with a frequency of 1.2 GHz.
  • Allow you to play online casinos in any place. The desktop site limits the user to the computer, which can not be taken anywhere. Of course, you can always use a laptop, but it is easier to download and install the mobile client because almost everyone has a smartphone today.
  • Have an interface that is adapted to touch screens. The mobile application is controlled by a touchscreen, which is very convenient for gadget users.
  • They allow you to enable alerts. By activating this feature, you will receive a notification every time a new promotion is added to the casino or the assortment is updated. In addition, when you activate alerts, you will see a timely response from specialist tech support.
  • Regularly updated. Thanks to this you will be the first to get access to new slot machines and relevant promotions. It is not recommended to turn off automatic updates, as the developers fix existing bugs, and improve client functionality.

i Legislation and jurisprudence

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1.     Existing Powers of Central Government

The Centre may derive power to enact a law on online skill gaming under the following powers under List I (the Union List):

  • Under entry no. 31, “posts and telegraphs; telephones, wireless, broadcasting and other like forms of communication.” As per the Report by the Law Commission of India on “Legal Framework: Gambling and Sports Betting Including in Cricket in India”, (“Law Commission Report”) since online betting and gambling are offered and played over media covered under this entry, the Parliament has the legislative competence to enact a law dealing with the same.

  • Under entry no. 42, “inter-State trade and commerce”. Recently, the High Court of Karnataka21 and Madras22 recognized that the power to regulate games of skill lies with the State legislature under Entry 26, List II, i.e., trade and commerce. If that is the case, it can be argued that online gaming activities, which take place pan-India and across various States (as an operator and a player may be in different States), amount to ‘inter-State trade and commerce,’ and Parliament may hence derive legislative competence to enact a law dealing with such activities.

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2.     Resolution under Article 252

Article 252 of the Constitution of India allows two or more States to approach the Parliament to enact laws regulating matters where the Parliament does not have the power to make laws for the States. If two or more states invoke the process under Article 252, the Parliament can enact a law for regulating online skill gaming, which may consequently be adopted by States.

The Prize Competitions Act, 1955 (“PCA”) is a prime example of this process. While the subject matter of the PCA (gambling) fell under the State List, the States of Andhra, Bombay (Maharashtra), Madras (Tamil Nadu), Orissa, Uttar Pradesh, Hyderabad, Madhya Bharat (Madhya Pradesh), Patiala and East Punjab States Union (Punjab) and Saurashtra (Gujarat) passed resolutions under Article 252(1) to empower the Parliament to legislation on the topic of prize competitions. Subsequently, states such as Rajasthan and Karnataka adopted the PCA as well.

Interestingly, the Rajya Sabha debates explain that there was considerable difference in opinion between the different states regarding regulation for prize competitions. While a few states were in favour of a complete ban of prize competitions, other states did not wish for the Centre to step in at all. However, there appeared to be a large measure of agreement that instead of an outright ban, the solution was to regulate and introduce a licensing regime for prize competitions, which was achieved through the PCA. A similar approach i.e of state wise licensing regime under state rules which are framed under central law, could be considered for online skill gaming as well.

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Online casinos offer many different payment options, so you are not limited to two or three methods. Your best shot is to pick a casino with favorable and secure payment options. But, even before you share your account details, verify the authenticity of your casino.

The common payment methods to use for online casino transactions include:

  • Credit and debit cards. The two are the most common payment methods that offer you a seamless transaction. If your bank allows you to connect your account to casino transactions, you only need to enter your credit card number.
  • Paytm. Based on the UPI gateway for Netbank, Paytm gives you an easy and secure payment option. Besides, when you use Paytm for a long time, you get the advantage of dedicated perks and points for loyal users.
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  • Immediate payment service (IMPS) and UPI. IMS and UPI let you transfer funds back and forth between your bank account and your casino.

Territorial legislative regulation

It is known that each state in India can define its own separate laws. That is why on the territory of almost each of them there are certain provisions governing online betting. Such areas include:

NameCharacteristic
TelanganaThe Telangana Gambling Act of 2017. Sets a ban on betting shops and casinos, no mention of online activities.
MaharashtraOnline sports betting is in a “gray area”. Note that at the same time totalizators and lotteries are legal in full.
Andhra PradeshAndhra Pradesh Gambling Act. It was amended in 2020 and bans all forms of gambling, with no mention of online betting.
KarnatakaKarnataka State Police Act. This act banned land-based gambling establishments.
Uttar PradeshThe regulations of the territory establish a ban on absolutely all forms of offline betting. There is no mention of online.

Also Read:  What is "100 per cent Cricket Year of Women’s Cricket” campaign launched by ICC?

The Union Territory of Diu, Goa and Daman were the first in the country to legalize gambling houses. It is followed by the state of Sikkim, which since 2008 has had the Sikkim Online Gaming (Regulation) Act, which regulates it in its territory. Overall, it must be concluded that online betting is legal in India. Nevertheless, in order to avoid some problems, it is still worth using licensed platforms.

Bookmaker companies with licensed operations

As a rule, information about special permission is on the official pages. And there is a special guide https://plusbet.in/ for those who do not want to do the searching and comparative characterization on their own. Thus, to the most popular platforms that provide licensed online betting and other entertainment activities are:

  • Parimatch;
  • 4rabet;
  • 1win;
  • Betway;
  • 1xBet;
  • Melbet;
  • Betwinner;
  • 22Bet and much more!

Each of these portals is famous for its features and entertainment, promotions and bonuses, odds and markets, online broadcasts, statistical information about the matches, sports, various national and international tournaments and much more!

Easy Deposits and Withdrawals

Gambling for real money online should be quick and painless. Make sure you choose an operator that offers fast and secure payment, and of course, withdrawal methods. You don’t want to wait to play, and you certainly don't want to have to wait long to get your winnings back.

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    This is one of the most popular deposit methods at online casinos. Skrill, formerlyMoneyBookers, is available at the majority of sites. Users have to open an e-wallet account on theSkrill site, fund it and then deposit on the casino. Unfortunately, Skrill deposits are often noteligible for welcome bonuses.

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    Technological Aspects that Drive Online Gaming Adoption and Penetration

    Conventional knowledge of gambling regulations in India has convinced operators, affiliates and players that only online (offshore) gaming allows you to play legally, unrestrictedly and nation-wide. With some notable State exceptions in terms of potential and currently evolving legislation (see below), there has not been a single Indian-based licensed online casino so far.

    Thus, as long as potential players have a stable internet connection (mostly 4G in India’s case), they are able to enjoy casino games, online betting and many pay-per-play types of games. And with computers not always a viable option for most, a smartphone remains the preferred device to access i-gaming platforms and Apps.

    This is where the importance of India’s sheer market size of young mobile users (largest globally) comes into play, having surpassed China in that category some years ago.

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    Another popular e-wallet that is widely accepted for online gambling purposes in India. Infact, most online casinos accept deposits by Neteller and also support free withdrawals to the sameaccounts. Again, operators exclude Neteller deposits from casino bonuses.

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    Related

    • Online Casino In India – Games, Bonuses & Offers
    • The Rise of Mobile Casino Gambling in South Africa
    • July 26, 2022
    • Why prefer online casinos over offline ones?
    • Why prefer online casinos over offline ones?
    • April 18, 2021
    • Best Slot Machines to Play in India 
    • July 1, 2022

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