The question, “is gambling legal in India?”, is one that many enthusiasts and curious individuals ask, and the answer isn’t a simple yes or no. Legal framework regarding betting and gaming in the nation is a complicated fabric consisting of both ancient federal legislation and more recent state-based policies coupled with a pivotal difference between games of talent and games of chance. On the one hand, the traditional physical gambling is mostly limited, whereas the advent of the internet has opened up new possibilities, and this complicated the situation even more.
This detailed tutorial made by Sky Exchange will make you to know all about it. We will dissect the fundamental laws, discuss the legality of various activities, ranging between casinos to online sports betting, and explain the rules that you can use to move around this space with the aforementioned confidence. Understanding whether is gambling legal in India is key to enjoying your favourite games responsibly.
Knowing the Basics: what are gambling and betting?
It is necessary to realize the terminology before going deep into the legal details. Gambling and betting can be used interchangeably; however there is the distinction between the two, and it is useful to be aware of it.
Defining Gambling
Fundamentally, there are three main aspects of gambling, which include:
- Consideration: placing something of significance typically money at stake.
- Risk: A contingency whose end result, you have no control over.
- Prize: This is the likelihood of gaining a high value reward.
This could pertain to just a simple roll of the dice or even a spin to a roulette wheel. The result is normally instant and highly depends on chance.
What is the difference in Betting?
Gambling can be of a specific form referred to as betting. It is a planned contract under which you bet on the final result of an upcoming event. This is connected with sports most of the time, when you can place a bet on what will be the results of a game, which team will win, or what will be the number of runs scored by some player. Although it is a kind of gambling, sometimes, betting is a bit of analysis and understanding, and it is hard to put the boundaries between chance and ability.
The Central Legal Framework: India Gambling Laws
India bases its gambling laws on one that is more than 150 years old; which poses special issues in a digital era. The nature of legal existence of the gambling activities is based on two main factors: validity of a central law, formulated before the era of internet and ability of individual states to establish their own regulations.
The gambling Act 1867
The principal body of central legislation related to is the Public Gambling Act 1867. It is a law that was enacted during the British rule which was aimed at banning running or attending a public gaming house. Its prohibitions mainly entail:
- Keeping or controlling a common gaming house.
- Gambling in a gaming house.
- Financing betting in those centers.
Its penalties are not up to date and what is more important is that the law does not even say a single word about online gambling, the internet did not even exist. This creates a significant legal grey area, which is a key reason why the question “is gambling legal in India” has such a nuanced answer.
It is a State-by-State Issue
Betting and gambling under the Constitution of India falls in the state subject. This enables the individual state governments to make laws and even regulate the activities of gambling within their states. It has resulted in a hodge-podge of law with an activity being illicit in one state, and completely legal and licensed in a different. In an instance, states such as Telangana and Andhra Pradesh have been outright to ban all online gambling activities, however, the other states have adopted a different strategy. This is why the answer to “is gambling allowed in India” can change depending on where you are.
Most significant difference: Game of Skill and Game of Chance
Perhaps the most critical factor in determining if gambling is legal in India is the distinction between a “game of skill” and a “game of chance.” The difference has been explained by the Supreme Court of India in a number of landmark cases.
- Game of skill: A game in which the player skill, knowledge, experience and strategy plays an important role in deciding the outcome of the game. The element of chance might be insignificant but it is the mastery that makes the difference.
- Game of chance: A game in which the winners result is solely by chance or luck without much or no skill.
Under the Public Gambling Act of 1867 games of mere skill are exempt. In a case pertaining to horse racing and card game Rummy, the Supreme Court has declared that these activities are games of skill. Games such as the game of flush (three card brag) on the other hand have been considered games of chance. Singling this out is what enables fantasy sports and rummy websites to be legal in large sections of India, whereas other activities are banned.
So, Is Online Gambling Legal in India?
This is the million dollar question to contemporary players. The simple answer is that it is located in grey area of the law on the central level. There is no overall law that openly says that online gambling is legal in India or that individual is not allowed to operate an online gambler due to the absence of a specific central law of interpretation that regards the internet as included in the Public Gambling Act of 1867 which did not directly refer to the internet as a point of reference.
But other laws are in effect:
- The Information Technology (IT) Act, 2000: This law provides the government with the authority to prevent access of foreign websites and this includes some of the online betting and casino related internet sites, which are considered to be violating the Indian laws.
- Payment and Settlement Systems Act, 2008: In some instances, it has become problematic to players since the Reserve Bank of India (RBI) has asked payment gateways and banks to be wary of transaction involving gambling on the internet.
Nevertheless, a substantial number of citizens of India access such global betting services as Sky Exchange. Since the locations of such sites pertain to being outside the jurisdiction of India, they are not held subject to Indian law. In case of the individual person, you cannot find an exact central law that forbids to put the bet on the offshore platform. The secret is not to forget about your home town state laws since some of the states have also passed an anti- online gaming legislation.
A Closer View: Is Based on the Legality of Various Gambling Activities
To truly understand if is gambling legal in India, we need to look at specific activities. These regulations can be so different regarding one game to another.
Casino Gambling
Playing in casinos in the flesh is also highly regulated and it is only permitted in certain states.
Legal casinos exist only in Goa, Daman and Sikkim. Five-star hotels are permitted to use licenses in the states of Goa, and Sikkim. Goa is also known as the land of offshore casinos which are sailing in the Mandovi river.
Sports and Betting on the Horse Race
Horse racing gambling is a game of skill and as such, it is legal in most parts of India as long as it is conducted in an authorized turf club on the race day. In some turf clubs even authority to set up online betting has been granted.
Sports betting is, however, mostly a game of chance that is considered illegal in most states. The state of Sikkim has been one of the chief exemptions, establishing a licensing framework to allow sports based betting on the internet within its boundaries.
Cricket Betting
There is a lot of heat around cricket betting. The state tends to consider it as such game of chance and thus it is not legal. After a number of scandals, however, the Law Commission of India proposed to legalise and regulate sports betting to control criminal forms and obtain tax revenue. Although there is no central action that has been taken, the debate goes on. As it is, fans usually resine to other international exchange websites such as the Sky Exchange to acquire international cricket market.
Poker
There is a great dispute that poker is a game of skill. Therefore in many states it is not illegal to play it. There are however certain states such as Nagaland, Sikkim and Gujarat which require a special licensing to any individual who wishes to provide poker games.
Lotteries
and the government-controlled lotteries are lawful, and are governed by the Lotteries (Restriction) Act, 1998. on the one hand, state governments are free to set up their own lotteries; on the other hand, lotteries involving private parties are forbidden. Other states such as Sikkim are more liberal and frequent draws are permitted.
Fantasy Sports
Fantasy sports are games of skill and as such permitted in most parts of India. This has given the industry to thrive with the gist being that users form their own teams depending on their own knowledge and analysis.
The Economical Aspect: Taxation of Winnings in India
When you win, it is bound to be the taxman who wants a piece. Understanding the tax implications is a crucial part of knowing if is gambling legal in India.
Winnings Income Tax
Under the Income Tax Amendment Act, the winnings made through lotteries, crossword puzzles, card games or any other gambling or betting game are subject to GST of 30 percent (including cess). This tax is withheld at source (TDS) in case you win more than 10000 INR.
Taxation Goods and Services Tax (GST)
Games of chance attract 28 percentage GST to face value of the bet placed. In the case of skill games provided by such platforms, the GST is normally levied on the platform charge or total gross gaming revenue and not the full pool of stakes.
Equalisation Levy
It is a tax rate on the income earned by the foreign e-commerce operators (including online gaming portals) against Indian residents at 2 percent.
The Bottom Line: Is Gambling Allowed in India?
Let’s summarize the complex answer to “is gambling allowed in India?”:
It is Dependent on which State: Gambling is a matter of the state and there is a lot of variation in the law.
- Skill vs. Chance: A matter of importance here, fantasy sports, rummy, horse racing, etc. are games of skill, and hence are deemed broadly legal. Lot of chance games are widely prohibited.
- Gambling in the form of Physical is also Prohibited: Casinos are legal in Goa, Daman and Sikkim.
- Online Gambling is a Gray Field: There is no single legislation that prohibits citizens on using offshore betting companies. There are however supplementary bans by some states.
To those who are interested to have safe and exciting experience, it is an issue of getting the right platform. With Sky Exchange, you can enjoy the best platform of involving yourself in a vast classification of sports markets and skill-based games. We take responsible gaming and secure environment of our users seriously. While the question “is gambling legal in India” remains complex, understanding the rules allows you to participate safely and responsibly. Get into the world of online gaming with Sky Exchange.
