In contrast, the participants use the other amount to participate in the fantasy sport or game being offered on the platform. After investigating the gaps in state legislation governing online gaming, the Ministry of Electronics and Information Technology proposed new regulations in April 2023 to safeguard online gamers from addiction and malicious material. At present, only a handful of States, namely, Sikkim, Nagaland, Meghalaya, Telangana, Andhra Pradesh and Karnataka have taken legislative steps to address the legal status of online gaming. Among these, Sikkim, Nagaland and Meghalaya have enacted regulatory frameworks that permit online gaming under certain conditions, such as licensing requirements and restrictions on the types of games allowed. These States have recognised the potential of online gaming as a legitimate commercial activity, provided it is conducted responsibly and within the bounds of regulation. Online gaming with stakes or real money is allowed in most of the states of India.

Gambling’s popularity persisted in India through the medieval era into colonial India and continues to this day. In the immediate period, the regulations regarding these activities are state-centric. The Constitution of India lays down the division of powers between the Union government and the State government to legislate on entries enumerated under Schedule VII of the Constitution. ‘Betting and Gambling’ form part of the ‘state list’ and therefore each state legislature is entitled to make its laws with regard to the mentioned matter. However, most of the states uniformly abide by the Public Gambling Act of 1867. As per the fairly new Goods & Services Tax (GST) laws, a 28% rate of tax is applicable on services by way of admission to entertainment events or access to casinos, etc.

Online Gambling and Betting

In response to increasing instances of advertisements promoting illegal activities such as betting and gambling, the Central Consumer Protection Authority (CCPA) has issued a comprehensive advisory. The advisory, in accordance with the Consumer Protection Act, 2019, emphasizes the prohibition of advertising, promotion, and endorsement of unlawful activities prohibited under various laws. Some online Rummy companies intervened to be impleaded in the matter as banks refused to process their loans and a judgment on the legality of offline rummy club game could impact them prejudicially. However, the matter was dismissed as the club was acquitted by the trial court on the grounds that the proceedings were initiated for other gambling activities on the premises and not for rummy. People can browse online casinos that accept INR without worrying about penalties. Credit cards, debit cards, prepaid cards, and cryptocurrency are the most popular ways to bank at online casinos.

Application for a License and License Restrictions for Gambling in India

• There are various legislations enacted by Centre as well as State for gaming activities such as the Public Gambling Act, 1867 enacted by the Centre.
• This research paper examines modern gambling trends , and compares the laws in different countries to highlight the need for and benefits of regulation.
• People can browse online casinos that accept INR without worrying about penalties.
• Whether a game is of chance or skill is a question of fact to be decided on the facts and circumstances of each case.4 The judicial view has been very strict in this regard.

One of the African nations to implement legislation governing online gambling is South Africa. None of the other states in India has made a specific law banning prize schemes on products similar to the Prize Schemes Act of Tamil Nadu. States in India have implemented their own regulations to govern such activities, with most states exempting skill games.

Fantasy sports platforms like Dream 11 have also come under judicial scrutiny. Indian jurisprudence has historically treated games in which skill predominates over chance as distinct from gambling. In R.M.D. Chamarbaugwala v. Union of India1, the Supreme Court recognised that competitions which involve the element of ‘skill’ fall outside the ambit of gambling prohibitions. It held that competitions where success substantially depends on skill and those where it does not are two distinct and separate categories.

Conversely, the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act of 2016 explicitly identifies poker and rummy as games of skill. However, when it comes to internet gambling, there is a lack of uniformity and clarity in the legislation across the nation. The majority of the regulations that Indian states have implemented to regulate these activities make an exception for games of skill.

There has been no modification in Canada’s legislation governing internet gaming. No law prohibits Canadians from using gambling sites that are situated outside of Canada, but there is legislation that makes it illegal for any corporation to offer betting and gambling services to Canadians without a government license. To further complicate matters, each Canadian province has the authority to control gambling in its own territory. Hence, several local governments run their own internet gambling and gaming businesses. By passing the Sikkim Online Gaming (Regulation) Act of 2008 and the Sikkim Online Gaming (Regulation) Rules of 2009, Sikkim became the first state in the nation to legalize online gambling. All types of games, including games of chance that are illegal in the majority of other jurisdictions, are included in the scope of online gaming under the aforementioned Act.

Online advertisement intermediaries have also been warned against targeting such advertisements toward the Indian audience. Deciding a petition9 filed in the Gujarat High Court, it was held that online gambling was punishable under the Gujarat Prevention of Gambling Act 1887. Therefore, the court directed the State to incorporate online gambling within the purview of the act. Senior advocate Sundaram, in response, clarified that the challenge was not to the Union’s legislative power to frame laws on online gaming, but to the manner in which that power was exercised.

Bangalore and Calcutta Turf Clubs had recently (during the COVID-19 outbreak), received permission from their respective State Governments to offer online betting on horse races conducted aviator signal in Turf Clubs. Under the Sikkim Act, an operator must obtain a license to offer such games in the State. These games can be offered through the internet only within the state of Sikkim. Recent amendments to gaming laws in Karnataka have restricted residents from engaging in online games of chance, such as gambling, betting, and wagering.