Gambling is one of the most heavily regulated industries in the world due to several legal and moral issues surrounding it.

Gambling laws differ from country to country and what may be completely legal in one jurisdiction may be outright prohibited in another.

It is estimated to reach $1 billion by 2021. On the basis of this report, Indian law commission said that regulating the industry of gambling in India will contribute with huge differences in boosted revenue generation. Online gambling in India is in its infancy stage in the current days and is developing at a good pace.

India is an irresistible market for betting and gambling sites due to its large population and a culture of sports betting and gambling.

India has detailed laws regulating gambling and casinos, although, like many other similar countries, there is a lack of clear guidelines on the legality or illegality of online casinos.

This is understandable as still many countries are struggling when it comes to regulating business or commerce over the Internet and online casinos further complicate things for the governments involved.

So, as of today, there is no easy answer to the question: are online casinos legal in India or not.

Nonetheless, some of the largest online casinos are waiting for things to become a bit easier as this will allow them to establish a presence in India, which has an annual gambling market of around $60 billion.

We’ll closely examine this issue in this article and discuss various laws and regulations concerning gambling in India.

Legislation In India

In India, both the federal government and provincial governments can make laws in specific areas as outlined in the constitution.

In some of these areas, both have the power to make laws and legislate an activity. Gambling is one such subject where both the provinces and the federal government have the power to legislate by making new laws.

On an overall basis, Gambling in India is governed by the Public Gambling Act of 1867, drafted when India was a British colony.

This Act, still in force outlaws all sort of gambling and betting activities, making any type of gambling illegal and punishable by law.

As this act was passed in 1867, way before modern computers or the Internet, so it says nothing about online casinos.

Indian Information Technology Act of 2000, prohibits publication or transmission of information which can corrupt people, this also includes gambling, although the vague language of this Act means there is not much said about gambling or online gambling to be specific in this act.

India has several provinces which are known as “States”, these states can make their own laws regarding gambling as explained above.

Just 4 states of India allow gambling including Goa, Daman, Nagaland, and Sikkim. Even these states don’t have specific laws concerning online casinos.

Gambling is regulated at both the federal and provincial level in India and many states have adopted the federal law in its entirety or after some modifications.

Almost none of these laws other than the ones passed by the Indian state of Sikkim discuss online gambling or online casinos in any way.

Online Casino License In India

Sikkim tried to auction 3 online casino licenses but due to a lack of interest from bidders, they had to drop this plan. Since then, no other Indian state has shown any interest in making online casinos legal within their territory by passing legislation.

Since then, no other Indian state has shown any interest in making online casinos legal within their territory by passing legislation.

Another thing to consider is the problem faced by Indian residents when it comes to depositing funds in an online casino as, like the US, Indian banks are not going to approve such a transfer.

This means that effectively Indian users can’t use most MasterCard or Visa Debit or credit cards issued by their banks for funding their online casino accounts as such transactions are declined by the bank.

Most casino players have invented several workouts around this issue by using eWallets such as Neteller, Skrill and some have also shifted to cryptocurrencies in recent years which include Bitcoin, Litecoin and Ethereum.

Online Casino In India

Legal Regulation Of Online Gambling

So, effectively there is almost a void in terms of legislation when it comes to online gambling, as India doesn’t have a single law prohibiting or allowing online casinos.

Due to the prohibition of gambling by above-mentioned laws including Information Technology Act 2000, there are no online casinos in India.

Foreign online casinos including some of the most well-known brands such as Bet365, William Hill, Ladbrokes etc. are aware of this situation and have actively taken the advantage of the fact that there is no local competition in the Indian market.

These websites accept Indian players from most states as they have nothing to lose, being based in other jurisdictions.

Indian government cannot do much to prevent these casinos from operating in India other than blocking their websites, a step which they have considered numerous times but haven’t yet taken.

Legal Loophole

Existing Indian laws, apply to all the residents of India, including the physical and legal persons and this includes the law concerning gambling and online casinos.

Due to the current legislation in India, a situation has arisen where it’s not clear whether online casinos are legal or illegal in the country.

When it comes to online casinos, it’d be safe to assume that we are in a grey zone here as there is no such thing as black and white.

Online casinos have shown shrewdness in taking advantage of this fact and have quickly filled the void created by a lack of local online casinos.

Foreign online casinos accept all types of players from India, who can play almost every game offered by these casinos in their online casino section without any hurdle.

Indian banks don’t process transactions for online gambling, but the players regularly use eWallets and cryptocurrencies such as Bitcoin to overcome this hurdle.

Conclusion

So, it’d be safe to assume that as of today online casinos are neither banned nor allowed.

The concern, are online casinos legal in India is still a vague one but what we do know is that there are online casinos that cater to Indian players.

Since no Indian law concerning gambling ever mentions the status of a foreign casino offering its services to customers in India via the Internet.

As outlined above, foreign casinos have taken note of this legal loophole and the large players in the online casino industry have been accepting Indian clients from all parts of India without any restriction for many years now.

The good news is that there are fantastic bookmakers such as Bet365 which offer the top tables and online casino games around.

Therefore, if you find yourself placing a bet from India you can rest assured that you will find an online casino to take your bet!

In India, gambling laws are established on a federal and state level. With states, it is essentially whether the local government authorizes brick-and-mortar casinos or not. The federal government does not have any specific laws directed at online gambling.

That being said, there are several laws in place with loose wording that can be misconstrued to apply to online gambling. Our team of online gambling expert has drafted this page as a legal resource with information on the 3 main laws that come closest to gambling regulation.

There is also information on gambling laws on the state level. It is important to be aware of the legal situation regarding online gambling in your area before engaging in any online gambling activity. This keeps you safe online and within your legal limits regarding legal online casinos in India.

Understanding Gambling Laws In India

With gambling, the main argument is usually the same across multiple nations—whether gambling is considered a game of luck or a game of skill. This distinction is important in the eyes of lawmakers and has an effect on how legislation is drafted and implemented.

Pro-gambling advocates argue that most games should be considered games of skill, especially online poker and India sports betting. Casino games are little trickier to distinguish (i.e. slots, roulette, etc.), but there are some considered games of skill. In India, there is no real need for this distinction given the outdated nature of the laws in place.

However, in consideration of India legal horse betting, which was nationally considered a game of skill in 1996 by the Indian Supreme Court, many Indian laws on horse racing were then specially written for each territory and remain active to this day which is why bettors should become familiar with each regions' distinct differences.

Indian Federal Gambling Laws

There are 3 main laws to discuss regarding online gambling in India—the Public Gambling Act of 1867, Prize Competition Act (1955) and the Information Technology Act of 2000. Between these 3 laws, there is no specific mention of online gambling.

This makes the legal conversation redundant, but some have tried applying the vague language in each law to online gambling, even though the Internet did not even exist at the time 2 of them were enacted. In any case, each of the laws is explained below.

Public Gambling Act of 1867

The Public Gambling Act of 1867 made it illegal to operate or use a gaming house. A gaming house is described in the law as a walled-in enclosure with cards, dice, counters or any other instrument of gaming used with playing for money, wager or stake. Violators of this law were subject to a sentence of up to one month in jail. Since this law predates the Internet by over 100 years, one would think that there is no way it could be applied to online gambling.

However, a 1976 amendment changed the wording in the gaming house definition to any “house, room, tent, enclosure, space, vehicle, vessel or place”. This amendment led to debates over whether the Internet fell into the “vehicle” or “vessel” category. Despite this point of confusion, there is one clear definition that rules this law void when applied to most forms of gambling.

In Section 12, there is language stating that none of the provisions established in the law shall be applied to games of skill “wherever played”. This effectively cancels out all arguments that the law can be attached to online gambling. To be clear, there is no mention of online gambling whatsoever.

Prize Competition Act (1955)

The Prize Competition Act was passed to address a specific facet of gambling. The act bans prize competitions where the prizes reach upwards of 1,000 rupees per month. There has been some debate over whether this law applies to any prize competition, i.e. gambling, but the definition laid out in the original language should be enough to dispel any confusion.

Per the law, prize competition is defined as a puzzle-based game utilizing the “building up, arrangement, combination or permutation of letters, words or figures.” Now, the inclusion of “figures” could loosely be applied to slots, but the lack of specific mention of online gambling rules this law as illegitimate in that sense.

The Information Technology Act of 2000

The Information Technology Act of 2000 is more of a blanket law attempting to cover all aspects of online activity in India. While there is no mention of online gambling, a specific passage has fueled speculation as to its applicability to the industry.

The passage in question discusses the transmission of messages through electronic means, messages that come across as offensive or menacing. The passage reads more as an anti-bullying clause more than anything else, but the Bombay High Court ruled that the law can be applied to content published online. Does gambling language come across as malicious?

There is an “etc.” in the clause, which some have tried to include online gambling in, but the vague placeholder is not enough to merit any sort of enforcement. Out of the 3 laws in place, this one is the farthest reach regarding online gambling regulation.

Indian State Laws Regarding Horse Race Betting and Race Course Licensing

Horse racing is a popular public entertainment activity in India and betting on the sport is considered a game of skill in the eyes of the Indian Supreme Court. Therefore, nearly every state within India has horse race betting exceptions within their gambling laws. Each individual territory within India was given a choice either adopted the central model for India's horse race betting law or retain their own state's statute on the matter.

Indian State Laws Regarding Online Gambling

Indian states have the power to authorize brick-and-mortar gambling should they choose to do so. So far, there are only 2 states that have passed casino legislation—Goa and Sikkim. Sikkim made headlines in 2008 with the Sikkim Online Gaming (Regulation) Act, allowing licensees to offer online video poker, baccarat, roulette, blackjack, and sports betting.

As of now, any Indian-based online casino licensed in Sikkim would only be able to offer services to Sikkim residents. Other states would first have to pass legislation allowing for Indian-based online gambling for licensees to extend their range. Even though the law was passed in 2008, it took several years for any licenses to be granted.

The first official license went to Future Gaming Solutions Private Limited. Sikkim is the most progressive state by far regarding gambling legislation. While other states may not have authorized land-based or online casinos based in India, there are no laws against betting with a legally licensed offshore operator.

Financial Laws Governing Online Gambling

Players from India may find some difficulties with online gambling transactions due to the Foreign Exchange Management Act (FEMA). The act was passed in 1999 to mitigate the exchange of foreign currencies. If an online gambling operator does not accept rupees, they will often feature a currency exchange service.

However, this could technically be considered an exchange of foreign currency, which is covered by the act. India online gamblers have other online casino deposit options like eWallets or cryptocurrencies that are not covered by FEMA. Most online brands accept Indian rupees as a viable form of currency, making gambling for players from India a streamlined process.

Satta Matka - A Transitioned Tradition

Satta Matka is an old form of gambling that began back in the 1970s. The game was created by Ratan Khatri and was popular up until the 90's before it became illegal. It is a lottery style game consisting of selecting 3 random numbers ranging between 0-9. Another set of random numbers is randomly selected.

Each set of 3 is added together and the second digit of the result (if any) is applied to the set. For example, if you selected 5, 6 and 7, you would have 18. The resulting draw would be 5, 6, 7 *8. Players would bet on the outcome of either the entire number set or individual values, depending on the bookie's betting options. Game results are revealed to players on a subsequent basis.

Payout rates have a wide range due to the number and types of bets a player can make. The game is not played anymore in any legal setting due to rules in place by the Central Lotteries Regulation Act of 1998. Indian players have since reverted to other lottery games and games of chance.

You can find multiple online lottery and casino game options through licensed India-friendly online casino operators. So, while Satta Matka is not played anymore, the demand for lottery gambling options is still present.

Legal Lottery Gambling In India

The Central Lotteries Regulation Act of 1998 effectively ended Satta Matka and offered a legal avenue for Indian punters to participate in numbers games. While Satta Matka and games like Keno are lottery-styled there are little to no legal routes to play these games domestically within India except on legal online keno sites.

Lotteries, however, are legal under this Act so long as they are played within their licensed jurisdiction and/or state. While the law uses the term central, the Central Lotteries Regulation Act of 1998 is not a federal law as some states are able to choose whether or not to offer lotteries at all.

Interpreting The Legal Online Gambling Framework In India

What does all this mean? The most important takeaway from all this is that it is legally possible to gamble online in India. The best option for residents is through offshore gambling operators that are legally licensed and regulated by a foreign government. If you live in Sikkim, there is an Indian-based online gambling option.

FEMA may limit your transaction methods, but there are legal ways around the law to allow players to successfully fund their account(s). None of the 3 overarching federal laws mention online gambling, and there are no legal means for them to enforce the industry. Based on our research, no resident has been tried under these laws for gambling online.