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Gambling in India – What’s Legal?

Though there is a number of arcane laws that put a stop to all gambling in India, there are a few states that are trying hard to legalize gambling, both at the casino and online. On such state is Sikkim, which though poorly populated, has a much more progressive attitude towards all forms of gambling. In Goa, there are a number of casinos. In truth, the Indian gambler can simply go online using a VPN and find a foreign casino that accepts Rupees and he's good to go.

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Introduction: Gambling in India

Thanks to rather arcane laws, gambling in India is still relatively new. The outdated rules that surround all types of gambling have certainly put India well behind the curve when it comes to the gambling industry. Obviously western casinos are looking at a country with a population of 1.3 billion potential gamblers and imagining just how profitable that could be for their annual profits.

What’s interesting about the Indian subcontinent is that gambling is not illegal in all parts. Much will depend on the city you find yourself in. For example, the State of Sikkim was planning to give out online gaming licences way back in 2010. But both political and religious pressure put an end to their ambitions. Nevertheless, there are those in India who are still determined to introduce gambling into Indian society.

Sikkim and Gambling

Sikkim is often held up as an example of a more progressive approach to gambling. According to the latest lottery news, they’re one of the few places in India that actually permits an online lottery that can take bets from players all over the Indian subcontinent. There was an expectation that other states would quickly follow as they could see that the lottery brought in substantial sums of money. Unfortunately, various societal pressures meant that no one wanted to follow in Sikkim’s footsteps.

Within the country of India itself, it’s illegal to promote online gambling games such as those found in casinos, along with sports betting, lotto and bingo. But there’s little the country can do against non-Indian casino companies who decide to focus on online Indian players. Technically, all an offshore casino would need to do is offer the possibility of accepting the Indian Rupee as a payment method. One such company that can accept Rupees is 22Bet Casino, which have a massive selection of casino games, including lots of live dealer table games.

Gambling Regulation in India

All cyber activities in India are regulated by the Information Technology Act of 2000, though interestingly enough, it doesn’t actually mention the words “gambling” or “betting.” As a result, these two activities have been left to the interpretation of the courts which have continuously refused to examine the matter of online or offline gambling. Under the Bombay Wager Act all gambling, including online gambling, is a criminal offence in the state of Maharashtra.

States Allowing Casinos

In the whole of India, there are only 3 states which licence casinos to win the jackpot. These are Goa, Daman and Sikkim. In Goa, you’ll find 10 casinos of which 6 are based on land, with four others floating on the Mandovi River. The floating casinos in Goa are Casino Deltin Royale, Casino Deltin Jack, Casino Pride and Casino Pride 2. These casinos are controlled by a couple of companies, the Deltin Group and the Pride Group, and these casinos were set up thanks to the Diu Public Gambling Act of 1976. This act states that casinos can only exist if they’re part of a five-star hotel or offshore vehicle with prior permission from the government.

In the State of Sikkim, there are two casinos called the Casino Mahjong and the Casino Sikkim. There has been talk about setting up a new casino in Visakhapatnam, but still, nothing has come of this. If you haven’t been playing at an online casino in a jurisdiction where it’s legal, then expect to see a fine of 90000 rupees per day. These fines have been regularly given out since 2009.

Digital Gambling in India

The Indian state-wide anti-gambling laws are known as “Gaming Enhancements.” Which is strange as they do nothing to enhance either gaming or gambling. Under these so-called gaming enhancements, all casino games are treated as gambling activity and thus are prohibited. This law banning casino games applies to both online and real land-based casino games. But the State of Sikkim has legislated to offer online games within the state of Sikkim itself, thanks to the Sikkim Online Gambling Regulation Act of 2008. With this, a licence can be obtained which will cover certain casino table games, like blackjack, casino brag, and roulette. These licences are given out by the Sikkim Finance Revenue and Expenditure Department.

Yet other states in India have acted with their own licensing regimes, especially for casino table games. As previously mentioned, these include Goa, Daman, and Diu. In Goa, the Goa Act prescribes licensing for games of electronic amusement/slots machines. But only in five-star hotels. You can play some table games, but only onboard ships which are offshore and in international waters.

In Sikkim, the Sikkim Casino Act with the Second Casino Commencement Control on Tax Rules of 2007, also allows licences in five-star hotels within the state. These games can also be offered through the State’s own intranet, which limits the games to within the State of Sikkim.

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Bingo

Bingo is prohibited in nearly all Indian states, though much will depend on the exact format of the bingo game being played. For some States, they can fall under the general definition of “gambling”, and in other jurisdictions, it can be defined as a “lottery.” Nevertheless, you can’t win the jackpot online as it‘s still seen as a “game of chance”, which is not allowed.

Sports/Horse Race Betting

Interestingly enough, betting on horse racing is classed as a game of skill as opposed to a game of luck. We should also point out that there is no regulation for betting on horses via the internet throughout India. The State of Sikkim is one of the only states that permit sports betting but only via its own intranet, which limits its reach to within the State of Sikkim itself.

Fantasy Betting

On the whole, because most fantasy sports require a certain amount of skill, they are exempt from provisions under the Gaming Enhancement Laws. Though within the Indian subcontinent, only the state of Nagaland has put forward a licence for Virtual Team Selection Games and virtual sports fantasy league games for when they’re being played online.

Confusion on Gambling Online in India

Essentially, in the modern internet age, it does not matter a jot what countries might want to implement in the form of anti-gambling laws. Maybe there are many instances where it is illegal to gamble online in India. But like King Canute trying to stop the rising tide, it’s impossible to legislate against international internet use. Everybody simply hits up their favourite casino using a VPN. Then the Indian gambler who wants to go online to a casino and play casino table games only needs to find an offshore casino that accepts his currency. You can use your Rupees at 22 Bet Casino. They also have an amazing welcome bonus for all new players of 122% up to €300!

There is one small fly in the ointment though: the Foreign Exchange Management Act of 1999. This was put in place to have oversight over the exchange of foreign currencies. Technically, if you are depositing in an offshore gambling casino site using any other currency than the Rupee, then that could be considered an exchange of foreign currencies. Because of this, it’s difficult for many Indians to deposit into foreign sites from either their bank account or their credit card. Nevertheless, there are e-wallets riding to the rescue, and the use of Skrill, Neteller, Paysafecard, Pay by Phone, and PayPal, are very popular options for both depositing funds as well as for receiving any winnings.

Closing Thoughts: Gambling in India

Even though there are so many outdated laws surrounding gambling in India we still feel that it’s a growing industry, and it will continue to do so with greater internet penetration from foreign gambling entities. Right now there’s no differentiation between those games that require skill or chance. Considering the amount of money that must be leaving the Indian subcontinent every day and being spent on foreign online casinos, you might imagine the government would be quick to implement new laws and rules to control this outward flow of money.

The fact that any online foreign casino site can accept Indian players, whereas the same players are not allowed to gamble within India itself, proves how backwards and outdated these gambling restrictions really are. And the fact that the best online casinos with jackpots, which are foreign companies, are able to profit so well from Indian players is something slightly ridiculous, especially when you consider how much money they are spending. Surely it’s better if they spend it at home. But having said that, laws that have either ethical, moral, or religious backgrounds are more difficult to deal with, without upsetting a huge portion of your voters.