Gambling Laws in India

India's gambling laws are mixed and unclear, with the industry still largely in its infancy. There is a growing appetite for activities though, particularly online sports betting, which has resulted in a few states attempting to make these legal.

Which Gambling Activites Are Legal in India?

India is an example of a country whose gambling laws are dictated by individual states. This can potentially confuse, but thankfully national laws clarify the situation.

There are only two types of gambling legal in the country: sports betting and playing state lotteries. That said, Goa and Sikkim are home to several world-renowned legal casinos. In addition, though online betting is prohibited in several states, there is no legal framework for the activity in any others.

Playing Offline and Online Casino Games

The Public Gambling Act of 1867 made it illegal to operate a gambling house or be present in one. For most of India's 29 states, this antiquated law still stands. The only exceptions are states with their own casinos, namely Goa, Daman and Sikkim.

Much of the country's laws lack specific mentions of online gambling. However, there are a couple of exceptions to this generalisation. The law distinguishes between games of chance and skill. With the latter not classed as gambling in the country.

In addition, some states have their own gambling laws:

• Nagaland: All games in which chance outweighs skill are prohibited, with licences offered to operators hosting only games of skill.

• Sikkim: Online gambling was legalised in 2010, but the small population made it unprofitable for online casinos to operate there.

• Andhra Pradesh, Telangana and Tamil Nadu: All three states recently outlawed all forms of online gambling, including sports betting, lotteries and rummy.

The Foreign Exchange Management Act (FEMA) of 1999 was enacted to prevent illegal currency exchange affecting online casinos, specifically deposits from Indian nationals. The result is that some online casinos can only accept Indian rupees via eWallets which bypass FEMA restrictions.

The Information Technology Act of 2000 grants the Indian government power to require internet service providers to block specific websites. Some online gambling sites fall foul of such powers and in many cases for unclear reasons.

Real Money Poker

In most regions, poker is regarded as a game of skill and therefore not classed as gambling under the Public Gambling Act. Only one state has laws specifically addressing poker, and that is Nagaland. Where licensed operators can offer residents online poker, but only as long as they fulfil the following:

• Both main offices and servers must be located in India

• The operator must only offer games of skill

Asking these sites to remove other games is a tall order, especially since many of them have been operating without a license for many years. As such residents do get access to the online casino slots and live dealer tables.

Bingo Gambling

Bingo is tricky to define regarding Indian gambling laws, as it all depends on how the game is viewed. As a game of chance, bingo is classed as illegal. However, if it is classified alongside lotteries, it could be legal under the Lotteries Regulation Act 1998.

The only place where all types of bingo gaming are fully legal is the small state of Sikkim.

Purchasing Lottery Tickets

Many people drew attention to the fact that the Public Gambling Act of 1867 failed to mention lotteries. Even the amended version in 1970 included the concept of wagering and betting as gambling but didn't include lotteries. This led to a lot of confusion, which resulted in a law specifically for lotteries.

The Lotteries Regulation Act of 1998 gave each state the right to create its own regulations, with the only rule being that draws could operate only once a week. Currently, 13 of India's states allow residents access to play online lottery games for real money. These are generally restricted to buying tickets from the state lotteries via official websites.

Social Gambling and Online Crypto Casinos

As India's gambling laws are outdated at best and nonexistent, there is little information regarding the legalities of social gaming. Particularly regarding the concept of loot boxes and other non-monetary games. It is legal for adults to gamble with money in private residences though. It's very common for families to enjoy Teen Patti.

Cryptocurrencies can be traded and used in India but are not classed as legal tender. As a result, this means that existing gambling venues do not accept them as a form of payment. Residents can use their virtual coins on many online gambling websites in India though. Whilst this is illegal - no one to date has been prosecuted as the laws are so complicated.

Is Sports Betting Legal in India?

The only other gambling activity that enjoys a full legal status is horse race betting, which has been a popular pastime in the country for years. There are many on-site bookmakers at the various racetracks nationwide.

Other forms of sports betting fall under the Public Gambling Act's definition of chance-based games and are generally classed as illegal. However, that doesn't stop many underground bookmakers from operating. In addition, since there is little mention of online sports betting, residents find it easy to make wagers via the numerous offshore sites.

What's the Minimum Gambling Age in India?

In the regions where gambling is legal, the minimum age is 21. However, lotteries form one important exception and those aged 18+ can participate.

Indian Gambling Tax Regulations - Do Players Pay?

Laws apply in states where gambling activities are legal. In these areas, there is a standard 30% tax on any winnings obtained under the Income Tax Act.

History of Gambling Laws in India

Ancient Vedic texts mention gambling in the form of dice games as far back as 7300 BCE, suggesting that Indian culture has a rich history of the activity. By the 15th century, gambling was so popular that kings and their officials created house rules, allowing them to implement taxes.

With the British came cricket in the 18th century, and from there, a love for the sport arose and betting on games became extremely popular. The Brits tried to gain control with the passing of the Public Gambling Act of 1867, but it was already too late. 

India gained independence from Britain in 1947, but it wasn't until 1976 that some states made gambling a punishable offence. Goa introduced a bit of leniency with the Goa Gambling Act. This was amended to allow slot machines in 5-star hotels in 1992 and table games in 1996.

The Supreme Court case of Lakshmanan v State of Tamil Nadu in 1996 ruled that horse race betting is skill-based and therefore legal.

In 1998 the Lotteries Regulation Act clarified that individual states could pass regulations on lotteries as long as draws only run once per week.

1999 saw the first of Goa's casinos open, but additional licences were not granted until 2007. Sikkim followed suit in 2009 with its first casino.

2010 saw the state beginning to accept online gambling licenses.

The Nagaland Gambling Act was passed in 2016, making skill-based gambling legal. Telangana went in the opposite direction, making all forms of gambling illegal in 2017, with Andhra Pradesh and Tamil Nadu doing the same in 2020.

Key Facts

• Online gambling is not specifically mentioned in the laws of most Indian states. Many residents can bet on sports and play online casino slots via offshore online casinos as long as they do not violate the Foreign Exchange Management Act.

• Three states have made online gambling illegal: Telangana, Andhra Pradesh and Tamil Nadu.

• Sikkim has made online gambling legal, but the region is too small to be profitable for most operators.

• Two gambling activities are legal across most of India: horse racing betting and state lotteries.