India Gambling Online Law
Law commission submitted its recommendation to govt on legalising betting and gambling in India; It has suggested classifying gambling into two categories: proper gambling and small gambling. The Public Gambling Act (1867) mentions that all kinds of gambling in India are illegal. It is also difficult to catch online offenders if the websites which are used are hosted by servers located in foreign countries where betting is legal. Betting, Gambling, and Wagering. Betting is a word used to validate the activity of gambling. Before entering into the question of online betting or gambling, let us examine whether ‘gambling or betting’ per se is legal or illegal in India. There are no central laws against gambling or betting in India. The Public Gambling Act, 1867 does not prohibit gambling or betting, it merely.
- Online Gambling Laws In India
- India Internet Gambling Law
- India Gambling Online Laws
- Online Gambling Laws In India
- Indian Online Gambling Laws
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 laws in India are vague and open to
interpretation. Ask 50 different people about the legality of
betting in India and you’ll get 50 different answers. On this
page, we’ll attempt to give you a thorough but concise overview
of the current legal situation.
Gambling is regulated in India at the national and state
levels. On the national stage, gambling is mostly addressed by
two or three acts depending on who you ask:
- The Public Gambling Act of 1867
- Prize Competition Act, 1955
- The Information Technology Act of 2000 (maybe)
Online Gambling Laws In India
Online gambling isn’t specifically mentioned in any of these
acts so it resides in a grey area of the law. Some could argue
that the Public Gambling act of 1867 applies to online gambling
since it restricts all forms of “gambling.” Additionally,
there’s the problem that “gambling” itself is never defined by
the act.
The states also have the authority to regulate gambling to a
degree. Two states, Goa and Sikkim, have authorized a limited
number of brick-and-mortar casinos. The other states outlaw most
forms of gambling, betting, and poker. The one nationwide
exception is horse racing betting, which the Supreme Court ruled
was a game of skill in 1996.
Although most forms of real-world gambling are banned in
India, there are no legal means for prosecuting those who choose
to place their bets online. For that reason, India is a
fast-growing market for online gambling. With 1.2 billion
inhabitants and a growing middle class, India shows great
potential for e-gaming operators.
Offshore betting sites such as Bet365 have already entered
the market and cater to Indians. At Bet365, you may deposit with
Indian rupees and are welcomed to register and play all games
from India. Bet365 resides outside of India and is therefore
safe from the laws that ban the operation of gambling websites.
And since there are no laws that prohibit individual people from
placing bets online, Bet365 is able to take advantage of the
legal loophole.
The Public Gambling Act of 1867
The Public Gambling Act of 1867 made it illegal to run a
gaming house or be found in one. The act describes a gaming
house as “any house, walled enclosure, room or place, playing or
gaming with cards, dice, counters, money or other instruments of
gaming or is found there present for the purpose of gaming,
whether playing for any money, wager, stake or otherwise.” The
penalty for being caught in one is up to a month in jail.
This act predates the internet by well over a hundred years
so there’s a good deal of debate as to whether or not it applies
to online gambling. Does a website count as a “place” where
instruments of gaming are present? It depends on who you ask.
Further complicating matters, an amendment in 1976 added the
following text:
or place” wherever they occur, the words “house, room, tent,
enclosure, space, vehicle, vessel or place” shall be
substituted.”
The question remains: does the internet count as a “vehicle,
vessel or place?” The 1976 amendment also predates the internet,
but it could be interpreted as applying to the internet.
Additionally, there’s no ironclad definition of the word
“gambling.” The closest the Public Gambling Act of 1867 comes to
defining “gambling” is in section 12:
provisions of this Act contained shall be held to apply to any
game of mere skill wherever played.”
Prize Competition Act, 1955
The Prize Competition Act, 1955 seems to address a very
specific type of gambling, but it has been interpreted as
applying to all forms of gaming in which a prize is awarded. In
short, the act bans prize competitions in which the prizes
exceed a thousand rupees a month.
India Internet Gambling Law
The act defines “prize competition” with the following text:
cross- word prize competition, a missing- word prize
competition, a picture prize competition or by any other name)
in which prizes are offered for the solution of any puzzle based
upon the building up, arrangement, combination, or permutation
of letters, words, or figures.”
The Information Technology Act of 2000
The Information Technology Act of 2000 is even more difficult
than the other two acts described above, because it’s so broad
in scope. This act still causes a great deal of controversy
today due to its vague wording and harsh punishments for a wide
range of infractions.
Like the other two acts on this page, the Information
Technology Act doesn’t specifically mention online gambling.
However, the following text could be interpreted to apply to
internet wagering. No internet betting cases have yet to be
tried under the act, so we don’t yet know if it applies to
gambling or not. We will have to wait and see.
The most controversial portion of the act is also the part
that may or may not apply to online gambling:
India Gambling Online Laws
any information through an electronic message that is grossly
offensive or has menacing character and might cause insult,
injury, criminal intimidation, enmity, hatred, or ill will, etc.
or sending such mail intended to deceive or to mislead the
addressee or recipient about the origin of such messages”
Online Gambling Laws In India
A violation of this portion of the act may result in
imprisonment for up to three years and an unspecified crime. The
Bombay High Court has already ruled that this act can be applied
to content published on websites.
Could online gambling be considered a message that may cause
insult, injury, or ill will? Does it fall under the comically vague
“etc.”? We don’t know. So far, we have yet to read about anyone
being charged with placing bets under the law.
Indian Online Gambling Laws
What This All Means
In summary, gambling laws in India are confusing, poorly
written, and haphazardly enforced. The reality of it all for
online gambling specifically is that people across India bet
online every day. There are no laws that criminalize the mere
act of placing a few bets online. If you live in India, you have
access to a wide range of internet casinos, sportsbooks, and
poker rooms.
There’s no reason to limit yourself from enjoying the
excitement and convenience provided by gaming websites. In most
locations, betting over the internet is safer than doing it in
person. Millions of Indians already gamble online and have had
no legal issues to date.
The one bit of caution we would recommend is to look into the
laws in your area. Indian gaming law makes little sense and is
enforced at random. You should always check with the local
authorities before you place real money bets anywhere.