Online Casino In India Is Legal

Posted on  by admin
  1. Online Casino In India Is Legal For A
  2. Online Casino In India Is Legal To Be
  3. Online Gambling In India Legal

Since online gambling isn’t really legal in India, the best online casinos for Indian players are actually those located offshore. The legislation doesn’t forbid players from having fun at top rated India online casinos offshore, so as long as you make smart choices you should be fine. Because of this uncertainty there is no organization that operates the online casino in India. So whether online Casinos are legal in India is the question that has a negative answer. However, indulging in online Casino games would not be considered to be illegal if the site is outside the jurisdiction of India. The Law Commission of India released its report entitled ‘Legal Framework: Gambling and Sports Betting Including in Cricket in India’ (“Report”) on July 5, 2018. A day after releasing the Report, the Commission released a press note stressing that its recommendation was to ban betting and gambling in India. Up to 300 Wager-Free Cash Spins + Up to 2,500 Vollar & 1,000 Legal Online Gambling In India Crystals to use Legal Online Gambling In India in Volt City. 18+, New Players Only. Minimum deposit is €/£20. Free spins available on Starburst Slot only.

Most Read: Contributor India, May 2021
ARTICLE
To print this article, all you need is to be registered or login on Mondaq.com.

India's online gaming industry has been buzzing with activity of late. The industry has already seen phenomenal growth and offers vast potential ahead, given India's young population and the expansive reach of mobiles and internet. Industry revenue is expected to grow from around USD 600 million in FY18 to USD 1.6 billion by FY23, at a CAGR of 22.1%1. Fantasy sports games, in particular, have received much interest from Indian and foreign investors. Dream 11 reportedly became India's first gaming unicorn recently.

Amidst the buzz, a natural question is whether online games are legal in India or not. The answer is unfortunately not a clear one, given India's archaic and complicated legal framework on gaming. Added to the mix is a set of unfortunate recent incidents where players committed suicide after losing money in online games and one where a gaming platform was investigated for money laundering, resulting in some Indian states banning online games.

Legal framework

India does not have a unified law that deals with gaming or gambling (both terms are largely interchangeable for the purposes of Indian laws). The Constitution of India empowers each state to make its own gambling laws. This means there are numerous state-specific deviations. For example, Telangana, Tamil Nadu and Andhra Pradesh have banned online games. In West Bengal, games of bridge, poker and rummy are excluded from the definition of gambling. In Kerala, there is a government notification which exempts rummy from gambling if no side-betting is involved. Sikkim and Nagaland require a license for online games.

In many states, gambling laws continue to be modelled on a pre-independence law, the Public Gambling Act, 1867 (OldAct), which is not geared to deal with modern forms of gaming. For instance, this law contemplates games being played in a 'common gaming house' which is a physical space or enclosure.

Even states that recognize online games have differing treatment. Tamil Nadu continues to permit skill-based (but not other) online games while Telangana and Andhra Pradesh have altogether banned online games played for money or stakes.

Absent uniformity or clarity in law, different courts in India have taken differing views on how to treat online games. These views often do not reflect the practicalities of modern gaming. The Supreme Court of India has developed a guiding principle – games where chance dominates over skill are prohibited while games where skill dominates over chance are permitted2. But without an objective test to characterize games of skill and chance, courts have applied this principle differently to different facts. The result is a complex legal regime that makes it difficult to determine whether a particular game is permitted or not.

Three examples of online games that are becoming increasingly popular are discussed below.

Rummy

The Supreme Court has held that under normal circumstances, rummy is a game of skill and is permitted under gambling law3. However, this decision comes with a disclaimer. There should not be any evidence of gambling involved in any other way – game owners should not make profits or gains from rummy and games should not be played for stakes. The disclaimer means that several online rummy games cannot benefit from the Supreme Court's decision since they potentially involve profits for participants, who play for real money, and for game owners, who often charge participation fees.

The Kerala High Court4 also recently held that RummyCircle (online rummy) did not amount to gambling. Bear in mind here that Kerala laws do not treat rummy as gambling if no side-betting is involved, which means that courts in other states may not take the same view.

Poker

Different High Courts have given conflicting decisions on whether poker constitutes a game of skill or chance. While the High Courts of Gujarat5 and Bombay6 have held poker to be a game of chance and therefore prohibited, the Calcutta High Court's view is that poker is not covered under the state's gambling laws (meaning that it is not restricted)7. Again, the background here is that West Bengal gambling laws exclude poker from the definition of gambling.

The Supreme Court8 has also observed that there is no scope for using skill in games like poker double up, blackjack and pacman (meaning they are prohibited). However, this seems to have been a passing observation based on the factual findings of the lower court which had classified these games as games of chance. Again, this means there is no decisive ruling on poker.

Fantasy Sports

Unlike other online games, fantasy sports games have generally been given consistent treatment by Indian courts and have been allowed on the basis that they require skill. Both the Punjab & Haryana and Bombay High Courts have ruled that the games offered by Dream 11 (fantasy cricket, kabbadi, football, etc.) require skill, knowledge, judgement and attention and are outside the scope of gambling9. The Rajasthan High Court has also followed suit10.

The above rulings do inspire confidence in the legality of fantasy sports games. However, it cannot be said that the position is settled yet, since other courts could react differently. For instance, applying the Supreme Court's decision on rummy, if a fantasy sports game owner makes profits from the game or if a participant plays for real money, does this indicate that the game has a gambling character? Unfortunately, we may need to wait for a court to answer this.

Summing up

Recent events do highlight the need to safeguard players but there could be solutions other than complete bans on online games. Instead, appropriate checks and balances could be considered. For instance, the Niti Aayog recently issued draft guiding principles for fantasy sports games which include setting up a self-regulating organization, maintaining predominance of skill in games, seeking approval from an independent committee for pay-to-play games, a minimum age of 18 years for participation, fairness and transparency in game terms and conditions, policies on misuse, advertising norms, etc. The Advertising and Standards Council of India also recently published guidelines for advertisements of real money games on a self-regulation basis.

But for starters, outdated state laws need to be overhauled to recognize online games in the manner they are played today. It may no longer be relevant to prohibit a game solely because it involves profits for game owners or is played for stakes.

Online

Uniformity in legal treatment across states is likely to be a difficult challenge to overcome. Perhaps the Central Government could take measures to encourage deliberations between states to bring in some uniformity in law. Since many state laws rely on the Old Act's provisions, they could consider a model amendment to the Old Act to recognize (or ban) online games. The Niti Aayog's guiding principles are a very positive start and show good intent from the government. Hopefully this will pave the way for a clearer legal framework that caters to modern day gaming.

This article was previously published on Live Law

Footnotes

1 https://assets.kpmg/content/dam/kpmg/in/pdf/2019/03/online-gaming-india-fantasy-sports.pdf

2 Dr. K.R. Lakshmanan v. State of Tamil Nadu and Anr. (AIR 1996 SC 1153)

3 State of Andhra Pradesh v. K. Satyanarayana (AIR 1968 SC 825)

4 Play Games 24X7 Private Limited and Ors. v. Ramachandran K. and Ors. (2019 4 KLT 542)

5 Dominance Games Pvt. Ltd., v. State of Gujarat (2018 1 GLR 801)

6 Nasir Salim Patel v. State of Maharashtra & Ors., WP (Criminal) 427 of 2017

7 Indian Poker Association v. State of West Bengal, W.P.A. No. 394 of 2019

8 M. J. Sivani v. State of Karnataka (AIR 1995 SC 1770)

9 Gurdeep Singh Sachar v. Union of India and Ors. (2019 75 GST 258 Bombay) and Varun Gumber v. UT Chandigarh (2017 CriLJ 3827)

10 Chandresh Sankhla v. The State of Rajasthan and Ors. (2020 2 RLW 1601 Raj)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

POPULAR ARTICLES ON: Media, Telecoms, IT, Entertainment from India
Cyber Crimes Under The IPC And IT Act - An Uneasy Co-Existence
The term 'cyber-crimes' is not defined in any statute or rulebook. The word 'cyber' is slang for anything relating to computers, information technology, internet and virtual reality.
An Update On India's Information Technology (Intermediary Guidelines And Digital Media Ethics Code) Rules, 2021
On February 25, 2021, the Ministry of Electronics and Information Technology of India notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
The Information Technology (Intermediary Guidelines And Digital Media Ethics Code) Rules, 2021: Impact On Digital Media
India is claimed to be the world's 'largest open Internet society' and attracts many social media companies to do business in India.
Gaming In India –Current Framework & Challenges
The gaming sector has seen a bourgeoning growth during the pandemic, and India does not have a comprehensive legal framework in place to promote the industry.
Advertising Law In India - Part 1
At present in India, there is no central statutory agency or uniform legislation regulating the advertising industry.
Intermediary Liability: Evolution Of Safe-Harbour Law In India (Part I)
This is a quick guide to the evolution of safe harbour provisions under Indian Law and how proposed amendments are likely to impact them.
Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email.
Advertisement By Online Gaming PlatformsS.S. Rana & Co. Advocates
Let's Take A Moment For 'Moment Marketing' And Recent Olympics Saga!!S.S. Rana & Co. Advocates
Big Reforms For The Indian Telecom SectorJ. Sagar Associates
Government Provides A Fillip To The Telecom SectorKhaitan & Co
Bombay High Court Stays OTT Code Of Ethics Under The New IT RulesBTG Legal
Webinar Istanbul Turkey

India is one of the most densely populated countries in the world. With upwards of 1 billion citizens throughout 29 states and seven union territories, each area of the country offers a unique cultural, economic, and entertainment experiences. With such a large population, the country’s state-regulated gambling markets have a vast potential player base.

India is also a country that gives its states the right to determine their laws and regulations, which includes their positions on casino gambling. As such, there are only a few states in India that have legalized casinos in the last 20 years.

Online

This guide is meant to help India’s residents determine the best options for domestic casino gambling and offshore online casino gambling, and provide key information pertaining to both.

Which states have domestic casinos in India?

Since domestic gambling is still so new in India, it is not abundantly available throughout the country just yet. In 2019, just 20 years after its legalization, there are only three states in India operating domestic casinos:

  • Goa in western India
  • Daman in western India
  • Sikkim in northeast India

However, in the Indian state of Maharashtra, Costa Cruises operates a casino cruise that ships out of Mumbai.

Can I gamble online if my state has local casinos?

Although Sikkim has been the only state to make an attempt at offering online casino licensing for domestic sites, offshore online casinos are legal in India. According to Indian law, non-Indian casino companies are permitted to focus on the country’s players as long as the site uses Indian rupees as a payment method.

This means that citizens of Goa, Daman, and Sikkim may play at the domestic casinos in their states and offshore online casinos. It must be noted that online gambling is banned in Maharashtra, meaning Costa’s casino cruise is the only option in the state.

Best Online Casinos Accepting Players from India

Due to Indian gambling laws, offshore casino websites are usually the best option available for players. The following online casinos are all licensed and regulated offshore, allowing them to accept Indians.

These sites have also been tested for their safety, reliability, and legality, assuring that players can use them without fear.

Site NameBonus OfferAccepts IndiaVisit Site
100% Max 1 BTC
Bitcoin Only
100% Max $100
Casino, Sports And Poker
150 Chances
To Become An Instant Millionaire For $10
100 Chances
To Become An Instant Millionaire For $5
100% Up To €100
Over 550 Casino Games
Up To €1000 Free
Match Bonuses On First 5 Deposits
100% Max $3,000
Live Dealer Games Available
100% Max $3,000
Live Dealer Games Available

What are the differences between India’s state-regulated casinos and offshore online casinos?

The main difference between state-regulated casinos and offshore casinos is their governing bodies. In Goa, Sikkim, and Daman, the states regulate their respective casino enterprises. Each has the power to pass laws, approve licenses, and set requirements for the industry. Casinos in India are all brick-and-mortar or on cruise ships, whereas online casinos can only be accessed via the internet.

Offshore online casinos that accept players from India operate outside the jurisdiction of India, meaning they are regulated by other countries, such as Costa Rica or Antigua. While India does not regulate these online casinos, the laws of the country still dictate their availability to citizens.

FAQs

What is the minimum gambling age for casinos in my state?

The minimum age for gambling at domestic casinos in India is 21 years old. Offshore online casinos accept players in India who are 18 and over. Underage gambling is taken very seriously and is a criminal offense. Offshore

What state in India was the first to permit casino gambling?

Goa was the first Indian state to legalize casino gaming in 1999.

Who regulates casino gambling legalization in India?

Casino gambling regulation is executed at the state level, with individual states in India being entitled to legalize and oversee gambling in their respective jurisdictions.

Will casino gambling be legalized in other states?

It is possible that other states may legalize gambling, but it is for the states themselves to decide. There are rumors casinos could come to Andhra Pradesh in the near future.