The Legality of “Public Gaming” in India

Anyone who keeps up with the gambling industry around the world will probably know that India has some of the most confusing and vague gambling laws. The reasons these laws are so unclear are the fact that these laws are totally outdated and that the distinction between games of skill and games of chance remains unclear.

What is clear is that online casinos are prohibited in India if the operator is based within country. In fact, ‘online casinos in India’ technically refers to online casinos which offer their services to Indian players but are based outside of India. Most forms of land-based gambling are also prohibited, although a lot remains unclear about online gambling in India.

The Public Gaming Act in 1876

The Public Gaming Act was established centuries ago, long before anyone could have imagined the age of the internet. The act states that gambling in gambling houses, or land-based casinos, is prohibited. By association, even an online casino registered and based in the country is prohibited. However, since there is no mention of online gambling, Indian players have a wide choice of foreign online casinos where they can gamble without breaking the law.

To date, there is no gambling law that specifically forbids online gambling in all of India and no one has ever been prosectuted for online gambling. However, it’s always important to be aware of the law and make sure that any online casino available to Indians is licensed and legitimate.

Games of skill vs games of chance

As mentioned earlier, one of the main problems with the gambling laws in India is the distinction between games of skill and games of chance. According to the Public Gaming Act of 1867, games of skill are games where the outcome of winning primarily depends on “knowledge, training, attention, experience, and [the] adroitness of the player”. The Supreme Court also adds that the skill factor is predominant in any game of skill. For example, Rummy is considered a game of skill because skill plays a bigger part in the outcome than chance. Poker, on the other hand, is not considered a skill-based game, even though it’s technically a combination of both skill and chance.
Horse racing betting is another example of a skill-based game because it involves skill and extensive knowledge rather than relying on chance. Betting on horse racing became legal in 1996 when the Supreme Court ruled horse race betting as a game of skill. Lotteries are also legal in several Indian states, which only makes the law even more confusing since there are absolutely no skills involved in playing the lottery.

Cricket betting is another disputed topic in the Indian gambling laws because so far, it’s also prohibited. Many consider gambling on cricket to be a game of skill, since the outcome of the game depends on the skills and performance of each player, not on chance or luck. Cricket betting can easily be compared to horse racing betting in this respect, but it remains illegal under the current Indian gambling laws.
The Only States Were Gambling is Allowed
Although most forms of gambling are illegal in most Indian states, there are three states which allow gambling: Goa, Sikkim, and Daman. Both offline gambling at land-based venues and online gambling are allowed in these states. Goa can be considered somewhat of a hub for gambling in India, with high-end, luxury casinos operating in this state. It’s also famous for its floating casinos on the Mandovi River like the Deltin Royal casino and Casino Pride.
Gambling in Tamil Nadu
No Indian state has explicitly banned online gambling in India and it’s somewhat of an unspoken rule that online gambling is allowed since there is no mention of this in the most recent version of the Public Gaming Act. Tamil Nadu is the first to pass a law that officially prohibits gambling, providing much clear gambling laws than most Indian states.
Tamil Nadu banned online gambling on November 20, 2020 with an amendment to the Tamil Nadu Gaming and Police Laws. The ban on online gaming officially prohibits any form of online gambling on games which are considered to be based on chance. The amendment to the gambling laws now prohibits all of the following in the state of Tamil Nadu:

• Online gambling via a computer or any other communication device and explicity prohibts playing rummy and Poker among other games.
• Wagering or betting online including the transfer of funds intented to be used for wagering and betting.
• Owning any gaming instruments that can be used as an electronic record to register evidence of gambling or prize money.

What hasn’t changed in the state of Tamil Nadu is the law regarding games of skill. Gambling on games of skill such as horse racing is still allowed. Penalties and fines have also been introduced for those who are caught wagering or betting or operating a gambling house. The fines range from 500 to 10,000 rupees and even up to two years imprisonment.

The Future of Online Gambling in India

The recent ban on online gambling in Tamil Nadu takes a strict stance against online gambling but so far, there is no indication that it will extend to other Indian states. The status of online gambling in India remains a grey area in the majority of Indian states, although there is a possibility that this will change in the near future. Following Tamil Nadu’s recent gambling law amendent, there is certainly the possibility that other states might also make similar modification to their gambling laws in the near future.