Online Gambling Law in India, internet casino india law.

Internet casino india law

Online casino sites to play on real money

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 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.

Online gambling law in india

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 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:

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:

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.

The act defines “prize competition” with the following text:

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:

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.

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.

Are online casinos legal in india?

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.

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.

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.

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!

Online gambling laws in india

In this article, bhavna thakur discusses laws regulating online gambling in india.

Betting is characterized as wagering, gaming or partaking in a lottery. An individual is betting at whatever point he or she takes the risk of losing cash or possessions, and when winning or losing is chosen generally by shot. Digital betting is otherwise called web betting, is a general term for betting utilizing the web.

History of gambling

There’s a considerable measure of confirmation that betting amusements existed in old circumstances. From tiles found in china dating from 2300 BC and ivory dice found in egypt from 1500 BC to betting stuff having a place with bronze age greek officers, unmistakably betting is as old as human progress itself.

The romans expounded on betting, relating stories of workers and sovereigns betting with dice, and archives have even been discovered recounting gigantic betting obligations and the battles that broke out finished them. While confirmation of any early roman online poker room embarrassments is thin on the ground (it must involve time) there is proof of stacked dice, found in the remnants of pompeii going back to 79 AD, instantly before the city got covered in a million tons of hot magma and fiery remains when vesuvius blew.

Also, it was all around archived that two rulers named olaf, one norway’s ruler, the other sweden’s, moved dice to decide how domain ought to be partitioned.

Betting has made some amazing progress since ancient egypt, with the web based betting world ceaselessly developing in 2015 and past. Join the rich history of betting by attempting one of our suggested locales, offering benefits that incorporate.

• Safe and secure saving money alternatives


• Splendid scope of diversions


• A comprehension of client’s’ needs, from years in industry

Web gaming and electronic wagering laws in india are so far creating. We have no dedicated laws for electronic gaming, electronic wagering, online dream sports, online poker, et cetera in india. Really, we have no laws that can sufficiently oversee honest to goodness issues of web gaming, electronic wagering, online dream sports, e-games, et cetera in india. Thusly we have disavowals and impediments that have been constrained by central laws and laws of different states making the entire gaming and wagering indian gaming and wagering industry is before long torment from nonattendance of a techno legitimate structure that can supervise online gaming and electronic wagering related issues.

Starting late the indian government has explained about the foreign direct investment (FDI) in E-commerce sector of india. FDI is confined in lottery business including government or private lottery, online lotteries, and wagering and betting including betting clubs et cetera. To the degree the points of central government are concerned, it is not for allowing FDI in lotteries, wagering and betting. Further, central government moreover declined to give its feeling on the legality or wrongdoing of online beguilements and web wagering in india. As needs be the online gaming and electronic wagering agents of india are at present required to agree to various laws of india, both central and likewise state sharp.

“the sikkim state government has issued its first license to an online gambling operator”

Types of gambling

• Slot machines


• Lottery


• Scratch cards


• Poker


• Black jack


• Roulette


• Bingo


• Sport betting and racing


• Online gambling

Web based betting locales or permitting wards

Authorizing experts are simply national governments which have sanctioned enactment giving them the privilege to permit and direct the operation of web based betting. Nations by and large do this to create income. Authorizing experts have been situated in little countries with constrained normal assets or an unsophisticated economy. Inside these locales, there is generally a vast focal association that the two issues licenses and arrangements licensees. Holding a permit from one of these bodies gives a site the privilege to make its administrations accessible in various world betting markets. In many parts of the world, working a betting site without such a permit is unlawful.

At the point when an administrator needs to open another betting site, they look for authorizing specialists similarly we search for another place to play blackjack or wagered on our most loved games. These experts have criteria that layout what a web based betting premium must do keeping in mind the end goal to gain and after that keep up an administrator’s permit.

Online gambling

The state of sikkim is the main state in india which has authorized a law for internet betting and dons wagering.The sikkim was passed on june 28, 2008 with the dual objects of controlling and regulating online gaming through electronic or non-electronic formats, and imposing a tax on such games in the state of sikkim.The sikkim,were subsequently passed on march 4, 2009 (and the same have been amended from time to time)

Most gambling legislation restricts the demonstration of

• Owning, continuing, possessing or having consideration and administration of a gaming house/regular gaming house.


• Progressing or outfitting cash for the reasons for betting to people frequenting any such gaming house.


• Betting in like manner gaming house or present with the end goal of betting in common gaming house.


• Betting or suspected betting in any open road, place or avenue.


• Printing, distributing, offering, dispersing or in any way circling anything with the expectation of supporting or encouraging betting.


• Betting fundamentally (this is not material to each state. Just the gambling legislation of states like orissa restrict the demonstration of gaming itself)the obligation for offenses under the gambling.

Enactments generally vest with

• The proprietor of the gaming/basic gaming house.


• The individual keeping or having charge of the gaming/basic gaming house.


• The individual betting or having instruments or records of wagering or associated with betting or having such instruments.

All gambling legislations endorse punishments which are pretty much comparative. The bombay prevention of forces a fine and detainment for guilty parties. A first offense is culpable with a fine of in any event INR 500 (around USD 8) and 3 months detainment, a moment offense is culpable with a fine of at any rate INR 1,000.

PIL filed for banning online lotteries from other states in state of maharashtra

The PIL expressed that state government has allowed just 13 online lotteries. Be that as it may, administrators with authorizations from states like mizoram, arunachal pradesh, sikkim, and meghalaya, are directing on the web lotteries where comes about are reported in like clockwork on single-digit. The solicitor named the whole movement as absolutely unlawful. As per lottery rules confined by maharashtra government, it’s required for administrators to pay propel impose on a wide range of online lotteries in the state. Be that as it may, the lottery organizations tested legitimateness of standards and the high court had given a break remain on it. Exploiting it, the online lottery organizations from outside states stayed away from installment of assessment to the tune of rs 933.14 crore amid 2007-09. In 2009, the high court lifted the break stay and enabled the state government to gather the expense, however no recuperation has been made.

Recent case in south delhi

Police on friday (7th july 2017) busted an illegal online casino at kotla mubarakpur in south delhi and arrested four persons in this connection, deepak chandra, raj kumar, arif khan and prakash have been arrested. Deepak used to operate the gambling den and handle all the cash and maintain transaction details. The alleged mastermind of the racket, a woman named neetu, is absconding. Police seized money rs 35,800, seven cpus, a portable workstation and a landline phone set among other items.Even, however, internet betting is unlawful in india, the market is assessed to be a couple of thousand crore rupees. Just sikkim has set down directions for controlled and checked web based betting.

Conclusion

At the present time – most betting in india is illicit. Be that as it may, lawful betting exists for horse dashing, lottery, and so on. There is additionally a high number of wagering locales lawful in the UK which benefit indians with just minor bother. The law right now appears to be more worried about terrifying indians not to bet, than it does much to counteract it. It appears to be exceedingly likely completely lawful betting will come to india sooner or later – how far away that is, is impossible to say.

Gambling laws and regulation in india

India has a huge population of well over one billion people. It is, therefore, probably no surprise that there are plenty of people who enjoy gambling in this region. Sports betting is very popular, particularly on cricket, as is horse racing betting. Casino gambling and playing poker are popular pastimes as well.

Despite the popularity of gambling in india, it’s technically prohibited in most of its forms. There are some exceptions, but there is very little in the way of legalized and regulated gambling. Much of the legislation which relates to gambling is very outdated and decidedly unclear. This is especially true when it comes to online gambling.

As a result, it’s very difficult to determine exactly what’s legal and what’s not in india. The legalities of gambling have been the subject of extensive debate in the region for many years, but there hasn’t been much progress in terms of clarifying things. The fact that there is gambling related legislation at both federal level and state level makes things even more confusing.

On this page, we explore the subject as best we can, by looking at the legislation which is in place and how it can be interpreted.

General gambling legislation in india

The main piece of legislation relating to gambling in india is the public gaming act of 1867. This act initially applied only to the ten states which were under british control at the time, but was subsequently amended to incorporate all other states. There have been some other amendments too, but the laws remain in place despite the fact that they are over 100 years old.

The public gaming act made it illegal to operate a venue where gambling took place. It also made it illegal to visit such a venue. While this is clear enough, there’s no precise definition of gambling within the act. This makes it hard to determine, for example, whether betting on a game of cricket is illegal in the same way as betting on the roll of a dice might be. It could be argued that cricket betting is skill based, and therefore not covered by the act, whereas betting on the roll of a dice is pure chance.

This argument is strengthened by the following clause within the act.

It should be noted, however, that there’s a definition of gambling in the constitution of india. A case could easily be made that this definition applies to any reference to gambling in the public gaming act. The definition is as follows.

While the language used here isn’t exactly clear and concise, it does suggest that anything where you can risk money to win money could be considered gambling. This would therefore make sports betting, casino games, and poker all illegal. However, there’s other legislation in india which contradicts this to some extent.

Horse racing betting in india

Horse racing has long been a popular sport in india. There are several racecourses throughout the region, and race meetings regularly attract large audiences. Bookmakers offer their services legally at these racecourses, along with the tote operators who provide pool betting. Horse racing betting is also legal off course, and betting parlors exist in many parts of the country.

Betting on horse racing has been legalized at state level, which is in stark contrast to the overall stance on gambling. Perhaps this is because horse racing wouldn’t really have the same appeal were there to be no betting involved, but this is still a great example of the contradictory gambling laws in india.

Lotteries in india

Another form of gambling which isn’t so strictly prohibited in india is lotteries. This makes even less sense really, because lotteries are the ultimate games of chance with absolutely no skill involved. Nonetheless, the lotteries (regulation) act of 1998 was passed to govern the operation of lotteries.

Although the act was passed at federal level, it basically gives the state governments the right to authorize lotteries within their jurisdictions. The act specified that a maximum of one draw per week was to be allowed, but this isn’t something that appears to be enforced too rigidly.

Casino gambling in india

There are two state governments in india which have passed state level legislation to allow legalized casino gambling. Goa was the first to do so, initially to allow slot machines in hotels and subsequently to allow fully fledged casinos. The state is now home to several land based casinos, and a number of cruise ship based casinos. It has become a very popular tourist destination partially because of this.

Sikkim was the next state to legalize casino gambling, and it currently hosts two land based casinos. It’s also a frontrunner in legalizing online gambling.

Online gambling in india

The public gaming act of 1867 makes no reference to online gambling. This is no surprise, given that the internet was a long way from being invented when it was introduced. It could be argued that operating a gambling website in india is deemed illegal under the terms of this act, given its wording, but this is far from clear.

There’s also another act which could be considered to relate to online betting and gaming: the information technology act of 2000. This makes provisions for various offences relating to online activity, although again there’s no specific mention of online gambling being illegal. It does give the indian government the power to block foreign websites however.

The government has used this power to instruct internet service providers to prevent indian residents from accessing certain foreign betting and gaming sites, but we don’t know for sure how effective this has been or which sites have been blocked.

At state level, there are two states which have introduced legislation relating specifically to online gambling. In maharashtra, it’s completely prohibited, while in sikkim the government now has the authority to issue licenses to operators wishing to provide online gambling services within the state. This is a notable step forward for regulated gambling in india.

How indian online gambling laws affect you

All in all, the legal situation relating to using online gambling sites in india is decidedly unclear. Many of the major gambling sites welcome indian customers, but because these sites are operated overseas they aren’t necessarily governed by indian law. As such this does not, by itself, mean that using a gambling site from within india is legal.

With that being said, with the exception of in maharashtra, there are no laws which clearly state it is illegal for an indian resident to gamble online. We are certainly not aware of any indian being prosecuted or charged for the offence of using a gambling site.

While we aren’t able to definitively state that you can legally gamble online in india, we don’t believe you should worry too much. You just need to make sure you use a site that’s reputable and trustworthy, and that accepts indian customers.

We do have one word of warning though. The foreign exchange management act (FEMA) 1999 was introduced to india in 1999 to govern the exchange of foreign currencies. Technically, depositing to a gambling site in a currency other than rupees could be considered an exchange of foreign currencies, and thus be covered by the act.

This is why many indians find it difficult to deposit at sites from their bank or by using a credit card. A popular solution to this problem is to use an e-wallet such as neteller or skrill.

Changes to indian online gambling legislation

It’s not unreasonable to expect that, in the coming years, the gambling legislation in india will be updated and amended in order to provide a clearer idea of what’s illegal and what’s not. We will keep you updated here with anything that happens in this regard, and any other legislative changes.

India: gambling 2020

The ICLG to: gambling laws and regulations - india covers common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability – in 39 jurisdictions.

Chapter content free access

1. Relevant authorities and legislation

1.1 which entities regulate what type of gambling and social/skill gaming activity in your jurisdiction?

Relevant product

Who regulates it in digital form?

Who regulates it in land-based form?

Casino gaming (including slots and casino table games such as roulette & blackjack)

Casino gaming is regulated under state-wise anti-gambling laws in india (“gaming enactments”). Under most gaming enactments, casino games are treated as gambling activities in india, and are prohibited. This applies for both digital and land-based casino gaming.

The state of sikkim has enacted a licence regime to offer ‘online games’ through the intranet within the state of sikkim, under the sikkim online gaming (regulation) act, 2008 (“sikkim act”). This licence covers certain casino games like roulette, casino brag, and blackjack.

The authority under the sikkim act is the finance, revenue and expenditure department.

Only the states of goa, daman and diu as well as sikkim regulate casino games in land-based form. The casinos in goa, daman and diu are regulated under the goa, daman and diu public gambling act, 1976 (“goa act”). The casinos in sikkim are regulated under the sikkim casinos (control and tax) act, 2002 (“sikkim casino act”).

In the state of daman and diu, the director of tourism regulates ‘games of electronic amusement and slot machines’.

In the state of goa, the home department regulates ‘games of electronic amusement/slot machines’, as well as ‘table games’.

In the state of sikkim, the tourism department regulates ‘casino games’ in land-based form.

Please refer to question 1.2. Skill versions of poker do not have a regulator in most indian states.

Only the state of nagaland regulates online games of skill. The nagaland prohibition of gambling and promotion and regulation of online games of skill act, 2016 (“nagaland act”) categorises online poker as a game of skill.

The licensing authority in nagaland is the finance commissioner. Please refer to question 1.2 for a further discussion on poker.

As stated in the corresponding column, poker can be argued to be a game of skill and therefore exempt from most gaming enactments. This exemption would apply to even poker when played on physical premises.

Depending on the exact format of bingo, it can fall within the definition of a lottery, or under the general definition of gambling under most gaming enactments, as it is a game of chance. In case of the latter, it would be prohibited in most indian states.

Please refer to the corresponding lottery column.

Depending on the exact format of bingo, it can fall within the definition of a lottery, or under the general definition of gambling under most gaming enactments, as it is a game of chance. In case of the latter, it would be prohibited in most indian states.

Please refer to the corresponding lottery column.

If the betting is on games of chance, this is prohibited in most indian states. If it is: (i) betting on casino games, please refer above; (ii) sports betting or fantasy sports, please refer to the relevant column below.

Please refer to the corresponding column.

Sports/horse race betting (if regulated separately to other forms of betting)

Betting on horse racing has been held to be a game of skill. There is no regulator for betting on horse races online. Please refer to question 1.2 below for further details.

Currently, the status of sports betting as a game of skill is in question before the supreme court of india in the case of geeta rani v union of india & ors. (“geeta rani case”).

Only the state of sikkim permits sports betting under a licence through the intranet within the state of sikkim only, under the sikkim act. The authority in sikkim is the finance, revenue and expenditure department.

Betting on physical horse races on race courses is regulated by the turf clubs, i.E., the race courses where physical horse races are conducted in india. These turf clubs operate under a licence from their respective state governments (“licensing legislations”).

Please refer to question 1.2 below.

Fantasy betting (payment to back a ‘league’ or ‘portfolio’ selection over a period of time, for example in relation to sport or shares)

Certain skill formats of fantasy sports should be exempt from the prohibitions under most gaming enactments.

Please refer to question 1.2 below.

Only the state of nagaland has enacted a licence regime for virtual team selection games and virtual sport fantasy league games when offered online. The licensing authority in nagaland is the finance commissioner.

Please refer to the corresponding column (apart from the discussion on the state of nagaland, which only applies to online games).

Please refer to the corresponding column (apart from the discussion on the state of nagaland, which only applies to online games).

Please refer to the corresponding column.

Social/skill arrangements

“social” gaming with no prize in money or money's worth

Typically, when there is no prize of money or money’s worth offered, it is not considered to be gambling. Depending upon the format and content of these games, certain other laws may be triggered, such as intellectual property laws, content laws, e.G. Laws prohibiting obscenity or violent content, etc. Please refer to question 1.2.

There is no regulator for such games.

Please refer to the corresponding column.

Skill games and competitions with no element of chance

As discussed above, games of skill are exempted from the prohibitions under most gaming enactments. The supreme court has specifically recognised certain games as games of skill, as discussed in question 1.2 below. No licence as such is required to operate such games in most indian states.

Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act.

Please refer to the corresponding column (except for the discussion on nagaland, which would only apply to online games).

1.2 specify: (i) the law and regulation that applies to the relevant products in your jurisdiction; and (ii) – in broad terms – whether it permits or prohibits the offer of relevant products to persons located in your jurisdiction.

Under the constitution of india, the indian states have been entrusted with the power to frame state-specific laws on ‘betting and gambling’. The public gambling act, 1867 (“public gambling act”) has been adopted by certain states of india. The other states in india have enacted their own legislation to regulate/prohibit gaming/gambling activities within their territory under their gaming enactments.

Most of these gaming enactments were enacted prior to the advent of virtual/online gambling and therefore primarily refer to gambling activities taking place in physical premises, defined as “gaming or common gaming houses”. It is not a settled position of law as to whether these prohibitions extend to the online medium.

These prohibitions include:

• Owning, keeping, occupying or having care and management of a gaming house/common gaming house.


• Advancing or furnishing money for the purposes of gambling to persons frequenting any such gaming house.


• Gambling in a common gaming house or present for the purpose of gambling in common gaming house.

In some indian states, the activity of gaming/gambling per se (irrespective of the medium through which such games are offered or played) is an offence, such as in the states of assam or orissa. Operators take a conservative approach and do not offer their games in these states.

The state of sikkim has enacted a licensing regime for online games and sports games through the intranet within the state of sikkim under the sikkim act and the sikkim online gaming regulation rules, 2009 (“sikkim rules”). The state of nagaland has enacted a licensing regime for online games of skill under the nagaland act and the nagaland prohibition of gambling and promotion and regulation of online games of skill rules, 2016 (“nagaland rules”).

Most gaming enactments exempt games of “mere skill” from their prohibitions, either by operation of a direct provision or interpretation of the case laws. The supreme court of india (“SC”) has interpreted the words “mere skill” to include games which are preponderantly of skill. Whether a game is of chance or skill is a question of fact to be decided on the facts and circumstances of each case.

There is no licensing regime for games of skill at a federal level. These games operate under the exclusion for games of skill. Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act. Certain games have been specifically recognised as games of skill under the nagaland act.

Further, in the state of telangana, the telangana gaming act, 1974 was recently amended vide the telangana gaming (amendment) act, 2017 (“amendment act”) to delete the exception for games of skill from the telangana act. The amendment act is currently under challenge before the high court of hyderabad. Accordingly, even games of skill cannot be offered in telangana.

Depending upon the type of game, the prize competitions act, 1955 (“PCA”) may also apply. The PCA was enacted to regulate certain types of competitions. In the case of R.M.D. Chamarbaugwala & anr. Vs. Union of india & anr., the supreme court held that the PCA would only apply to prize competitions which were of a gambling nature. However, due to the types of games covered under the PCA (i.E., crossword prize competitions, etc.), there is an anomaly in the scope of the PCA, read with the gaming enactments, and the nature of games for which a licence is required under the PCA.

Certain other laws that would apply to gaming activities have been discussed in question 2.9 and section 3 below.

As games which are predominantly chance-based, casino games are treated as betting and gambling activities, and are therefore prohibited under most gaming enactments.

Only certain states have enacted licensing regimes for casino games:

I. Goa, daman and diu: the goa act prescribes a licence regime for ‘games of electronic amusement/slot machines’ in five-star hotels, and table games and gaming on board offshore vessels, under the terms of a licence in goa, daman and diu.

Ii. Sikkim: the sikkim casino act read with sikkim casino games commencement (control and tax) rules, 2007 (“sikkim casino laws”) also prescribe a licence regime for casino games in five-star hotels in the state of sikkim.

Iii. The sikkim act covers certain casino games such as roulette, casino brag, and blackjack. These games may be offered through the intranet within the state of sikkim only.

It can be argued that certain variations of poker are games of skill for the purpose of most gaming enactments. Accordingly, such games should be permitted to be offered in most indian states with an exemption for games of skill.

The gaming enactments/courts in certain indian states have specifically recognised poker as a game of skill:

I. The state of west bengal has specifically excluded poker from the definition of ‘gambling’ under the west bengal gambling and prize competitions act, 1957.

Ii. The nagaland act has specifically categorised poker as a game of skill.

Iii. The karnataka high court has also held that a licence is not required under the karnataka police act, 1963 (“karnataka act”) when poker is played as a game of skill.

However, recently, the high court of gujarat has held in the case of dominance games pvt. Ltd v state of gujarat & 2 ors. That poker is a game of chance and a gambling activity under the gujarat prevention of gambling act, 1887. Accordingly, poker is currently prohibited in gujarat. However, an appeal has been filed against this order and is pending before the high court.

As stated above, depending upon the format of bingo, it may fall within the definition of a ‘lottery’ or under the general definition of betting/gambling under most gaming enactments, as they are games of chance and prohibited in most indian states. For a discussion on lotteries, please refer below.

If the betting is on games of chance, this is prohibited in most indian states. However, if it is betting on casino games, please refer above. If it is sports or fantasy betting, please refer below.

Sports/horse race betting

In the case of dr. K R lakshmanan vs state of tamil nadu (“lakshmanan case”), the supreme court held that betting on horse racing was a game of skill.

Most gaming enactments have carved out an exception for ‘wagering or betting upon a horse-race’ from the definition of gaming/gambling, subject to fulfilment of certain conditions (“horse racing exemption”). However, the horse racing exemption is subject to certain conditions under the gaming enactments, such as when wagering or betting takes place on the day on which the horse has run, in an enclosure which has been sanctioned by the state government, etc.

In the case of betting on real horse races, the conditions prescribed under the horse racing exemption would need to be met. Turf clubs regulate betting on physical horse races within their premises. One of the conditions which the racing exemption is subject to is that such betting takes place within an enclosure which turf clubs have set apart for betting. Accordingly, betting on physical horse races must take place within the confines of turf clubs. Such betting would also be subject to the rules of the independent turf clubs.

The above conditions would be difficult to meet in the case of online betting on horse racing products. However, one can argue whether a horse racing product is a game of skill independent of the horse racing exemption.

While arguably the treatment of betting on horse racing as a game of skill should apply to sports betting as well, currently the status of sports betting as a game of skill is sub judice in the geeta rani case, as stated above.

Only the state of sikkim permits sports betting. An operator must obtain a licence to offer such games under the sikkim act. Such games may be offered through the intranet within the state of sikkim only. In most other states, law enforcement authorities seek to prosecute players engaged in sports betting.

Fantasy betting

It can be argued that certain versions of fantasy sports games are preponderantly skill-based games in the indian context. Accordingly, such games can be treated as exempted under the gaming enactments.

The high court of punjab and haryana has held dream 11’s format of fantasy sport to be a game of skill in the case of shri varun gumber v. UT of chandigarh & ors. (“varun gumber case”). Thereafter, the high court of bombay also recognised that the same format of fantasy sport was a game of skill in gurdeep singh sachar v. Union of india.

The nagaland act expressly recognises virtual team selection games and virtual sport fantasy league games as games of skill. If such games are sought to be offered online in the state of nagaland, a licence would be required.

The lottery laws permit state governments to organise, conduct or promote a lottery, subject to certain conditions, as stated above.

Some states regulate physical lotteries (such as sikkim), and lotteries have been banned in certain states (such as madhya pradesh). Some states specifically provide for online lotteries (such as punjab).

The state governments are empowered to appoint individuals or corporates as ‘distributors’ or ‘selling agents’ to market and sell lotteries on behalf of the organising state under the lottery laws.

Section 294 A of the IPC specifically prohibits private lotteries. Certain states have repealed section 294 A of the IPC and enacted their own legislation banning lotteries apart from non-profit lotteries (such as the states of andhra pradesh, gujarat, karnataka, maharashtra, etc.). Certain other states have introduced legislation expressly banning lotteries in their states (e.G. The state of bihar vide the bihar ban on lottery act, 1993).

Social gaming

When there is no prize of money or money’s worth offered, the game is typically not considered to be gambling under the gaming enactments. Depending upon the format and content of such games, certain other laws could be triggered, such as intellectual property laws and laws prohibiting certain types of content – such as the IPC or the information technology act, 2000 (“IT act”) which prohibits obscene content, or the indecent representation of women (prohibition) act, 1986, which prohibits depicting women in a derogatory manner.

Skill games

As stated above, games of skill are exempted from the prohibitions under most gaming enactments. Arguably, such games can be offered in both land-based and digital form in all the states in which there is such an exemption. Only the nagaland act has enacted a licence regime to regulate the online versions of such games.

The supreme court of india has recognised certain games as games of skill, such as betting on horse racing and the game of rummy. The supreme court has also dismissed a special leave petition against the order in the varun gumber case.

2. Application for a licence and licence restrictions

2.1 what regulatory licences, permits, authorisations or other official approvals (collectively, “licences”) are required for the lawful offer of the relevant products to persons located in your jurisdiction?

Depending upon the type of product, and the medium through which the relevant product is sought to be offered, licences may be required for certain products. We have mentioned these below:

• Casino: licences for offering casino products in five-star hotels in goa, daman, diu and sikkim are available under the goa act and the sikkim casino laws, respectively. Licences for offering casino products offshore in goa, daman and diu are available under the goa act.


• Poker: operators in india may offer skilled versions of texas hold’em and omaha hold’em poker without a licence in all indian states except sikkim, nagaland, telangana and gujarat. In nagaland, operators would need to procure a licence to offer such games.


• Bingo: please refer to the lottery section below.


• Betting: if it is betting on games of chance, this is prohibited in most indian states. In the case of betting on casino games, please refer above. In the case of betting on sports/horse races, please refer below.


• Sports/horse betting: in the case of betting on physical horse races, a licence would be required. This does not include foreign horse races.

In so far as betting on horse races online is concerned, there are also no licences required. Based on the lakshmanan case, it can be argued that such games are games of skill and exempt under most gaming enactments. Innovative structures can be put in place for a foreign operator to offer such games.

In the case of betting on physical horse races, the conditions under the horse racing exemption would need to be fulfilled. Further, permissions/authorisations may need to be obtained from the relevant turf club.

As stated above, the question of whether sports betting is a game of skill is pending before the supreme court in the geeta rani case. Only the state of sikkim offers a licence to offer sports betting through the intranet within the state of sikkim only.

• Fantasy betting:if the fantasy sport game qualifies as a game of skill, no licence is required for offering such products under most gaming enactments. However, a licence must be obtained for offering such games in nagaland, under the nagaland act.


• Lotteries: under the lottery laws, state governments may appoint an individual or a corporate as a ‘distributor or selling agent’ through an agreement to market and sell lotteries on behalf of the organising state. Such persons would need to obtain authorisation from the state governments. Private lotteries are prohibited in most indian states under the IPC.


• Social gaming: no licences should be required for such games in most indian states.


• Skill games: as stated above, games of skill operate under the exclusion for such games under most gaming enactments. There is no licensing regime for such games at a federal level. Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act.

2.2 where licences are available, please outline the structure of the relevant licensing regime.

There are only a small number of states in india that allow operators to conduct gambling activities under a licensing regime. For brevity, we have only highlighted key points below:

Goa, daman and diu

• Scope: the government of goa issues casino licences to operators that conduct gambling activities in five-star hotels and on offshore vessels. The goa act contains provisions on the operation of licensed games of electronic amusement/slot machines in five-star hotels as well as table and games on board offshore vessels. However, a licence can only be applied for a maximum of 20 slot machines.


• Fees: the cost of a licence is INR 20,00,000 (approx. USD 28150) for onshore and offshore casinos, regardless of the number of tables or machines installed in the licensed premises. The following annual licence fees are payable:


• About INR 250,00,000 (approx. USD 351,875) per annum, per 100 square metres for land-based casinos in five-star hotels.


• INR 700,00,000 (approx. USD 985,250) for offshore casinos.

These licence fees are subject to annual increases.

• Scope: the government of sikkim regulates and licenses operators that wish to organise gambling activities under the sikkim casino act and rules. Licensees can only conduct gambling operations in five-star hotels.

Sikkim has also enacted the sikkim act and rules under which licences are granted to offer intranet games of: (a) roulette; (b) blackjack; (c) pontoon; (d) punto banco; (e) bingo; (f) casino brag; (g) poker; (h) poker dice; (i) baccarat; (j) chemin-de-fer; (k) backgammon; (l) keno; (m) super pan 9; and (n) other sports games which involve the prediction of results of sporting events and placing a bet on the outcome, in part or whole, of such sporting event. As per the sikkim act and rules, the licensee must be a company incorporated in india, and must operate only in sikkim.

• Fees: annual fee of INR 1 lakh under the sikkim act and rules (approx. USD 1,414), and an online gaming levy of 1% of the gross gaming yield to the state government.

West bengal

• Scope: an operator can apply for a permit to organise games of skill in a public market, fair, carnival or in the street, or in any place that the public can access.


• Fees: the cost of a permit in west bengal is INR 10 (approx. USD 0.14).

• Scope: as per the nagaland act, licences are issued for offering games of skill on online media: (a) chess; (b) sudoku; (c) quizzes; (d) binary options; (e) bridge; (f) poker; (g) rummy; (h) nap; (i) spades; (j) auction; (k) solitaire; (l) virtual golf; (m) virtual racing games (including horse and car racing); (n) virtual sports (including soccer, cricket, archery, snooker, bridge, and pool); (o) virtual fighting; (p) virtual wrestling; (q) virtual boxing; (r) virtual combat games; (s) virtual adventure games; (t) virtual mystery and detective games; (u) virtual stock/monopoly games; (v) virtual team selection games; and (w) virtual sport fantasy league games.

The licensees must be entities incorporated in india, have a substantial holding stake in india, and have no criminal history; and the license is only issued to those entities which have no interest in online or offline gambling activities in india or abroad.

• Fees: first three years – annual licence fee per game: INR 10 lakhs (approx. USD 14119), or INR 25 lakhs (approx. USD 35,297) for a bouquet of games per annum; next two years: INR 20 lakhs (approx. USD 28,238), or INR 50 lakhs (approx. USD 70,595) for a bouquet of games per annum. In addition, licensees are required to pay an amount of 0.5% of the gross revenue generated as royalty.

The eligibility above should be read in conjunction with the criteria covered in question 2.9.

2.3 what is the process of applying for a licence for a relevant product?

For brevity, we have highlighted only key points below:

• Casino – A licence application must be made by indian entities to the state government, who will examine the application. After making any inquiry it considers necessary, and on satisfaction that the applicant has a five-star hotel with capabilities to operate a casino, the state government can grant a six-month provisional licence on payment of a fee of INR 1,00,000 (approx. USD 1,411). A provisional licence is issued to enable the licensee to set up the necessary infrastructure to commence the operation of casino games at any time within that period. When the applicant fully complies with the terms and conditions of the licence, the government of sikkim can grant a regular licence on payment of a fee of INR 500,00,000 (approx. USD 705,940).


• Online games – the licensee is to make an application using the form as specified in the sikkim act and rules along with an application fee of INR 500 (approx. USD 7). The state government will then conduct an inquiry if it deems it appropriate before issuing/rejecting the licence.

West bengal

• An application for a permit to host games of skill in a public place must be made to the commissioner of police if the permit is sought in kolkata, or to the district magistrate or sub-divisional magistrate if the permit is sought elsewhere in the state. Currently, under the framework of different applicable laws, an indian operator would be in the best position to apply.

• An application must be made to the licensing authority, i.E. The finance commissioner (“nagaland authority”), identifying the games for which the licence is being sought, and must be accompanied by documents in support of the credentials of the promoters, audited financials, the software technology platform, a proposed business plan, and financial projections. A non-refundable application fee of INR 50,000 (approx. USD 700) is to accompany the application.

The nagaland authority will forward the application to certain ‘empanelled firms’ (lawyers/financial experts, etc.) who assist the state government in scrutinising all applications. The empanelled firms will then revert with either their certification or recommendations to the applicant within 30 days. The nagaland authority will also have the right to refer the application to an ‘ad hoc committee’ or an ‘expert committee’ to determine whether the recommendations of the empanelled firms are required to be adopted. These committees are required to make their recommendations within two weeks. The nagaland authority will then issue the licence to the application within 14 days of receipt of certification of the empanelled firms.

2.4 are any restrictions placed upon licensees in your jurisdiction?

For brevity, we have only highlighted key points below:

West bengal

• While the wording of the law does not expressly prohibit a foreign operator from applying for a permit, an indian entity would be best placed to apply bearing in mind the application of the other laws described in this chapter.

I. Should the licensees offer games under the licence in other states in violation of the provisions of the nagaland act or their local statutes, it may bring these violations to the notice of the nagaland authority;

Ii. Operations and technology support are controlled and maintained in india; and

Iii. The games must be offered only to those above the age of 18.

Sikkim – online

I. The licensee must provide certain details of the licence on their website/online portal;

Ii. The ‘OGS’ or the computer/system through which the games are conducted are to be certified by the state government; and

Iii. The games must be offered only to those above the age of 18.

2.5 please give a summary of the following features of any licences: (i) duration; (ii) vulnerability to review, suspension or revocation.

For brevity, we have only highlighted key points below:

• Nagaland: the licence will be valid for five years, subject to compliance with any prescribed conditions, and will be deemed to be renewed every year thereafter as long as the licence fee is paid. The delay in payment of the licence fee would result in a penalty of 12% per annum.


• Sikkim: the licence (unless cancelled or surrendered) will be valid for five years. The licence may be renewed on an application being made.


• Goa, daman and diu: five years.


• West bengal: permits are issued for specific events. The duration of a permit can be as short as a single day.

Vulnerability to review/suspension/revocation:

For states, such as nagaland, sikkim, west bengal and goa daman and diu, the licences would be suspended/terminated on a contravention of the licence terms, or of the law under which they were issued. Additional points to note are as follows:

• Nagaland: in the event of a breach, the nagaland authority shall issue a show cause as to why the licence should not be cancelled, and the licence holder has the right to make a written as well as an oral representation. However, the violation shall be compounded if the breach is remedied in 30 days.


• Sikkim: on a breach, the state government may suspend or cancel the licence after giving the licensee a reasonable opportunity to be heard.

2.6 by relevant product, what are the key limits on providing services to customers? Please include in this answer any material promotion and advertising restrictions.

In addition to our response to question 2.4, most gambling state enactments prohibit the printing, publishing, selling, distributing or circulating in any manner any newspaper, news sheet or other document, or any news or information, with the intention of aiding or facilitating gambling. These restrictions, however, should not apply to skill games. The IPC prohibits advertisements for lotteries, unless they comply with the provisions of the lottery laws. The advertising of prize competitions is prohibited, unless it has been duly authorised by the relevant authority. Games and gaming websites in india, and gambling operators’ websites in the states of nagaland and sikkim, are subject to content-related laws. For example:

I. The IPC, IRWA and IT act penalise obscene content.

Ii. The consumer protection act, 1986, is soon to be replaced by the consumer protection act, 2019 (“CPA”). The CPA classifies the offering of prizes with the intention of not providing them as offered/the conduct of a contest, lottery, game of chance or skill for the purpose of promoting a product/business interest as an ‘unfair trade practice’.

Iii. The copyright act 1957, the trade marks act 1999 and the patents act 1970 govern IP issues related to games (such as the use of trade marks, copyright, design rights and patent rights in the technology infrastructure of web operators).

The advertising of gambling is regulated by the telecom commercial communications customer preference regulations 2010, which prohibit unsolicited commercial communications to persons that have opted out of receiving them. These regulations also provide that telemarketing can only be carried out by operators that have obtained a licence from the telecom regulatory authority of india. The advertising standards council of india (“ASCI”) has released a self-regulatory code which is binding on the television/broadcasting industry; and, therefore, gambling advertisements on television. This code prohibits the propagation of products, the use of which is banned under the law.

• Sikkim: in the state of sikkim, licensees can advertise online games, provided that they comply with certain requirements. For example, advertisements of online games must:

I. Include the address of the online gaming operator’s website, which must include certain prescribed information.

Ii. Not be indecent or offensive.

Iv. Not be directed at any person under the age of 18.

V. Not be directed at any jurisdiction in which online games are prohibited.

• Nagaland: the nagaland act and rules permit the licensee to advertise on online and offline mediums, and they are allowed to display the fact that they hold licences from the government of nagaland.

2.7 what are the tax and other compulsory levies?

As per the indian income tax laws, any income, by way of winnings from any lottery or crossword puzzle or card game and other game of any sort, exceeding INR 10,000, is subject to a withholding tax of 30% (exclusive of applicable surcharge and cess). However, in cases where the winnings are wholly in kind, or partly in cash and partly in kind, and the cash component is insufficient to honour the withholding obligation in respect of the whole of the winnings, then the payor is required to ensure that the tax at the above rate is paid before the release of the whole winnings to the payee.

Under the goods and services tax (“GST”) laws, services by way of admission to entertainment events or access to casinos, etc. Is taxable at the rate of 28%. Further, GST at the rate of 28% is applicable on the betting or gambling services provided by casinos on the transaction value of the betting.

In the event a gaming activity does not fall in the nature of betting or gambling (i.E. In case of a game of skill), no GST may be levied. However, GST may be levied on the consideration amount payable/collected for the supply of goods or services or both on a gaming platform at the rate of 18%. Please note that to ascertain the rate of taxation, the exact nature of the product offering should be analysed.

2.8 what are the broad social responsibility requirements?

Most gaming enactments do not prescribe social responsibility requirements for gaming operators, since they have been enacted to prohibit gaming activities. The nagaland rules prescribe some requirements for online games of skill offered within the state, such as by prescribing that only players above the age of 18 are permitted to play for stake on operators’ platforms.

However, in the absence of regulation, the gaming industry in india has taken the initiative to self-regulate and prescribe standards for social responsibility. Certain self-regulatory industry associations, such as the all india gaming federation (“AIGF”) and the indian federation of sports gaming (“IFSG”), have prescribed such standards in their skill charters.

These requirements include:

• Player protection measures such as options for self-exclusion, age-gating, etc.


• Transparency requirements such as disclosing the terms and conditions on gaming platforms, as well as the mechanics and rules of all games.


• Provisions to regulate the content, duration, and targeted audience of gaming advertisements.


• Financial integrity, i.E., regulating the funds deposited by the player, requirements to maintaining records of transactions, etc.

2.9 how do any AML, financial services regulations or payment restrictions restrict or impact on entities supplying gambling? Does your jurisdiction permit virtual currencies to be used for gambling and are they separately regulated?

• Prevention of money laundering act, 2002 (“PMLA”)

In india, the PMLA prohibits money-laundering activities. Under the PMLA, entities carrying out the activities for playing games for cash or kind (including casinos) are also required to adhere to the provisions of the PMLA. Such entities are classified as ‘reporting entities’ under the PMLA.

As per section 12 of the PMLA, reporting entities are required to maintain records of transactions and documents evidencing the identity of their clients in accordance with the rules.

• Foreign exchange management act, 1999 (“FEMA”)

Under the FEMA, read with foreign exchange management (current account transaction) rules, 2000 (“current account rules”), remittance for the following is prohibited.

A) remittance out of lottery winnings.

B) remittance of income from racing/riding, etc., or any other hobby.

C) remittance for purchase of lottery tickets, banned/ prescribed magazines, football pools, sweepstakes, etc.

Skill games may be covered under the above prohibitions, especially under the heading ‘any other hobby’.

• Payment and settlement systems act, 2007 (“PSS act”)

Payment systems, both traditional and electronic in india, are regulated by the PSS act. Processing functions typically involve clearing, payment and settlement, which constitute the core functions of a payment system as per the definition under the PSS act. These functions are highly regulated by the reserve bank of india (“RBI”) as well as various statutes. Accordingly, payment service providers offering services to gaming operators may need to obtain authorisation from the RBI depending upon the types of functions that they undertake. Payment gateways and closed loop wallets are not treated as payment systems.

• Black money (undisclosed foreign income and assets) and imposition of tax act, 2015 (“black money act”)

The central board of direct taxes (“CBDT”) had released a circular with certain “clarifications on tax compliance for undisclosed foreign income and assets” (“circular”) under the black money (undisclosed foreign income and assets) and imposition of tax act, 2015 (“black money act”).

The circular clarified that a person having funds subject to tax in india, but on which tax was not paid, lying in offshore
e-wallets/virtual card accounts maintained with online gaming/ poker websites and having made profits therefrom is required to disclose to the indian tax authorities all the details in relation to these accounts. The circular stated that that an e-wallet/virtual card account would be considered similar to a bank account where inward and outward cash movement takes place. Hence, the same valuation and declaration of such accounts should be made by persons as in the case of a bank account, in order to comply with certain tax compliance requirements under the black money act.

3. Online/mobile/digital/electronic media

3.1 how does local law/regulation affect the provision of the relevant products in online/mobile/digital/electronic form, both from: (i) operators located inside your jurisdiction; and (ii) operators located outside your jurisdiction?

For operators located within india:

• Under the gaming enactments: the gaming enactments in india are state-specific. Most gaming enactments prohibit gambling activities in physical premises termed ‘common gaming houses’. Some states specifically prohibit/regulate such games in online form. Whether online games are prohibited/ regulated within the state would need to be tested under the gaming enactment of each specific state.


• Under the lottery laws: the lottery laws and section 294 A of the IPC should apply to domestic operators.


• Under the PCA: the PCA should apply to domestic operators.


• Under the IT act: the IT act applies to the internet medium and allows the government and the courts the power to order the blocking of websites hosting unlawful content.

Under the information technology (intermediary guidelines) rules, 2011, internet intermediaries are required not to knowingly host/publish information ‘relating to or encouraging gambling’.

• Under FEMA: since there would be no remittance of money by the indian player offshore, FEMA and the current account rules would not be attracted.


• Under PMLA: the requirements under PMLA discussed above would apply to operators located within india.


• Under the PSS act: the PSS act discussed above would apply to payment service providers located within india.

For operators located outside india:

• Under the gaming enactments, the PCA, and the lottery laws: the extra-territorial applicability and enforcement of these laws against foreign entities is debatable. It would need to be tested under each state law in which such products are sought to be offered. However, practically, enforcement against foreign operators would be a challenge.


• Under the IT act: websites offered by foreign operators may be blocked by indian governmental authorities and courts, as discussed above.


• Under FEMA: FEMA and the current account rules prohibit gambling-related outward remittances as discussed above. Accordingly, FEMA applies to outward remittances to offshore gaming operators.


• Under PMLA: entities incorporated or established abroad should not be covered as reporting entities under the PMLA.


• Under the PSS act: the licensing regime for payment systems under the PSS act does not cover foreign payment providers when they provide services in relation to offshore merchants.

3.2 what other restrictions have an impact on relevant products supplied via online/mobile/digital/electronic means?

Please refer to our response to question 3.1. All of the laws above, especially the IT act, would be applicable.

Excluding the nagaland and sikkim acts, the gaming enactments are pre-internet pieces of legislation and were not amended after the advent of the internet. In these enactments, gaming in a common gaming house is prohibited, and they do not distinguish between physical and online offerings. There are primarily two schools of thought:

(1) penal statutes such as these must be interpreted strictly as not being applicable to online offerings.

(2) the approach would be that all technological advancements should be read within the scope of the gaming enactments, which would hence be applicable.

3.3 what terminal/machine-based gaming is permitted and where?

As discussed in our response to question 1.2, the states of goa, daman and diu, and sikkim allow for terminal/machine-based gaming.

4. Enforcement and liability

4.1 who is liable under local law/regulation?

Under the gaming enactments, most offences and prohibitions are in relation to a ‘gaming house’ or a ‘common gaming house’ (except in states such as assam and orissa, where the activity of gaming, irrespective of the medium or location, may be a punishable offence). These gaming enactments provide for various offences with respect to gaming/gambling. The liability for offences under the gaming enactments usually vests upon:

I. The owner of the gaming/common gaming house.

Ii. The person keeping or having charge of the gaming/common gaming house.

Iii. The person gambling/person found in the common gaming house or possessing instruments or records of betting or suspected of gambling or possessing such instruments.

Iv. The person ‘assisting’ in conducting the business of any common gaming house.

V. Specific to sikkim, (a) a licensee under the sikkim act, (b) any person/operator acting on his behalf, or (c) an operator who does not obtain a licence under the sikkim act, but offers online games, sports betting, or both.

Vi. Specific to nagaland, a licensee under the nagaland act.

Under FEMA, the onus of compliance is on the indian resident party making the remittance outside india and not the foreign party receiving the remittance.

Under the IPC, the abetment of offences is also prohibited. Abetment has been defined as intentionally aiding such offences, whether by acts or illegal omissions.

4.2 what form does enforcement action take in your jurisdiction?

While the gaming enactments more or less prescribe fines and/or imprisonment; the amount of fine and period of imprisonment may differ from state to state.

The public gambling act imposes a penalty of INR 200 (approx. USD 2.9) or imprisonment for a term not exceeding three months for owning, keeping or having charge of a gaming house, and a fine of INR 100 (approx. USD 1.45) or imprisonment for a term of one month for being found in a gaming house.

The bombay prevention of gambling act, 1887 imposes a fine and imprisonment for offenders. A first offence is punishable with a fine and imprisonment of at least INR 500 (approx. USD 7.2) and three months respectively; a second offence with a fine and imprisonment of at least INR 1,000 (approx. USD 14.4) and six months respectively and a third or subsequent offence with a fine and imprisonment of at least INR 2,000 (approx. USD 28.7) and imprisonment for one year, respectively. In states such as nagaland, the fines for contravention might be significantly higher. For brevity, these have not been included.

Please refer to our response to question 3.1 for enforcement action under other laws.

4.3 do other non-national laws impact upon liability and enforcement?

Please note that this chapter refers only to the impact of indian laws on activities overseas (including in india). Readers should refer to the laws of other countries for the impact of those laws on activities overseas.

4.4 are gambling debts enforceable in your jurisdiction?

No, under section 30 of indian contract act, 1872, wagering contracts are void and cannot be enforced. There are certain exemptions provided under said section.

4.5 what appetite for and track record of enforcement does your local regulatory authority have? Have fines, licence revocations or other sanctions been enforced in your jurisdiction?

The majority of the gaming enactments are archaic and were enacted before the internet gained popularity. In the context of brick-and-mortar gaming houses, these fines and prohibitions have been enforced over a period of time. In the context of online gaming, since the industry has been around only for a couple of years, there isn’t enough of a record of enforcement on which to draw conclusions. While there are certain cases pending in courts (which we have highlighted through this chapter), not all cases are reported in the public domain. From the information that is available today and matters that are on public record, we understand that most cases are being heard and disposed of at the trial stage.

However, because of the increasing popularity of online gaming sites, authorities have become more active over a period of time. By way of example, earlier in 2019, the jaipur police arrested two individuals for facilitating bets on betfair.Com by using virtual private networks (“vpns”), thereby circumventing the geo-blocking measures which betfair had put in place for indian customers.

5. Anticipated reforms

5.1 what (if any) intended changes to the gambling law/regulations are being discussed currently?

Policy changes

• The law commission of india released its report entitled ‘legal framework: gambling and sports betting including in cricket in india’ (“report”) on july 5, 2018. A day after releasing the report, the commission released a press note stressing that its recommendation was to ban betting and gambling in india. However, if the central government or state governments did consider regulating it, the report set out some positive and logical measures to combat certain industry issues. The report is under consideration by the government.


• On december 28, 2018, the sports (online gaming and prevention of fraud) bill, 2018 (“sports bill”) was introduced as a private members’ bill in the lok sabha. The sports bill was introduced on the heels of the report. The statement of objects and reasons accompanying the sports bill has underscored that it has been introduced with the dual aims of (i) preserving integrity in sports, and (ii) introducing a regulatory regime for online sports betting. However, with the dissolution of parliament prior to general elections, the sports bill lapsed. It has not been re-introduced.


• The AIGF has written to the prime minister of india demanding that the enforcement directorate investigate and take action against offshore betting websites that are illegally offering websites to indian citizens and accepting bets from india, in contravention of the IT act and FEMA.

Pending litigation

Some of the key pending litigation cases are highlighted below.

• As stated above, the question of whether sports betting is a game of skill is pending before the supreme court. If the judgment concludes that sports betting is a game of skill, it will be exempt from most gaming enactments and can be offered in most indian states which recognise an exemption for games of skill.


• In so far as poker is concerned, an appeal is pending against the judgment of the high court of gujarat which has held that poker is a game of chance/gambling activity.


• Further, as has been stated, the telangana gaming act, 1974 was recently amended to delete the exception for games of skill from the telangana act vide the telangana gaming (amendment) act, 2017 (“amendment act”). The amendment act is currently being challenged before the high court of hyderabad.


• The kerala high court in the case of ramachandran K v the circle inspector of police has held that playing rummy for stakes would amount to the offence of gambling under the kerala gaming act, 1960. Previously, in the landmark judgment of state of andhra pradesh v K satyanarayana, the supreme court had held that 13-card rummy was mainly and preponderantly a game of skill. A review petition was filed against this order, but this petition was dismissed. The court held that whether rummy, when played for stakes, would amount to gambling would have to be decided on a case-by-case basis. A court would need to consider the manner in which the games were conducted online, and what the stakes involved were.


• In a case before the high court of delhi, a petitioner has sought a complete ban on online gambling websites from operating in india (both indian and foreign). The petitioner has sought certain directions from government entities that taxes are recovered from persons engaged in such gambling activities, and violations of FEMA are checked. This petition is targeted only at games of chance and has named poker, nap, sports betting, fantasy sports and election result prediction-related games as an illustrative list.

Internet casino india law

The public gambling act, 1867 ("gambling act") is the general law governing gambling in india. However, the state legislatures, under the constitution of india, have been entrusted with significant regulatory leeway to form state specific gambling laws. The gambling act is the central enactment which has been adopted by certain states in india and other states have enacted their own legislation to regulate and govern gaming/gambling activities within their territory ("gambling legislations"). Most of the gambling legislations have been enacted prior to the advent of virtual or online gambling and hence these gambling legislations primarily refer to gaming/gambling activities at the physical premises.

Regardless of the mounting popularity and the revenue generated by gambling and betting in india, the indian laws and the courts in india have been averse to any game of chance and probability, except in states of goa and sikkim. Since the advent of british rule, many indian states have enforced the gambling act prohibiting all forms of gambling and betting in their respective states. Goa and sikkim are the only exceptions which have allowed gambling and betting in their state, subject to regulation of their respective state governments. List II of seventh schedule of the indian constitution, endows the state governments with the power to legislate on matters concerning gambling and betting. India continues to enforce the pre-independent gambling legislations enacted by the british rulers, but it is interesting to note that UK has changed its gambling laws by allowing almost all forms of gambling in UK in light of the changing societal norms of their country.

The state of goa has allowed gambling by enacting the goa, daman and diu public gambling act, 1976. The goa, daman and diu public gambling act, 1976 was amended to allow card-rooms in offshore vessels and slot machines in five star hotels subject to prior approval and authorisation of the state government on payment of a specified recurring fee. The state of sikkim has also legalised gambling by enacting sikkim regulation of gambling (amendment) 2005. The sikkim regulation of gambling (amendment) 2005 authorises the state government to notify the specified areas where permission can be granted for running of casinos on payment of a specified fee.

This gives us an overview of the gambling laws in india and it is clear from the same that there are extensive restrictions on any kind of gambling or wagering activities in india. However, all the gambling legislations in india have excluded 'games of skill' from the purview of gaming activities in india. There have been numerous debates all over the world as to which games or activities can be considered as 'games of skill' and which games or activities are based predominantly on luck in which a person's intellect has been very little roles to play.

'gambling' is not defined under the gambling legislations. The dictionary meaning of gambling is "to stake something on a contingency; take a chance". The gambling under the gambling legislations does not include (i) betting on a horse race (subject to the legal regulations); (ii) games of skill (excluded under the gambling act and by the court's judgments); and (iii) lotteries (regulated by lottery laws of india).

Game of chance and game of skill

Gambling is understood both under its traditional form as well as modern avatar. The traditional gambling is understood in the context of physical space, brick and motor format, whereas modern gambling consists of computers connected offline or online, mobile phones, internet, etc. The gambling legislations exclude 'games of skill' from the purview of gambling and hence doesn't attract the penal provisions.

In state of andhra pradesh v K. Satyanarayana and ors [AIR 1968 SC 825], the court held that:

"the game of rummy is not a game entirely of chance like the 'three-card' game mentioned in the madras case to which we were referred. The 'three card' game which goes under different names such a 'flush', 'brag' etc. Is a game of pure chance. Rummy, on the other hand, requires certain amount of skill because the fall of the cards has to be memorised and the building up of rummy requires considerable skill in holding and discarding cards. We cannot, therefore, say that the game of rummy is a game of entire chance. It is mainly and preponderantly a game of skill. The chance in rummy is of the same character as the chance in a deal at a game of bridge."

In manoranjitham manamyil mandram v state of tamil nadu [AIR 2005 MAD 261], the court held that:

"therefore, while it is the right of the appellant to have recreational activities which are not prohibited, the respondent's right to take appropriate proceedings against illegal games of betting, wagering, etc. Is also provided for under the act. Therefore, there cannot be a blanket direction as prayed for by the appellant. The question whether a particular game is a game of skill or chance is to be decided on the facts and circumstances of each case. As and when proceedings are; initiated against the appellant in accordance with law, the appellant shall always have the right to question the same or challenge the action of the respondents if it is not in accordance with law."

The gambling act, by virtue of section 12, excludes 'game of skill' from the purview of law. Supreme court in the case of dr. R. K. Lakshmanan v. State of tamil nadu [AIR 1996 SC 1153] defined 'game of skill' as "one in which success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player". The court pointed out that a game of chance is one in which the element of chance predominates over the element of skill and similarly a game of skill is one in which the element of skill predominates over the element of chance. It is the dominant element – "skill" or "chance" that determines the true character of the game.

The supreme court in dr. R. K. Lakshmanan (supra) held that horse racing is a game of mere skill within the meaning envisaged under the madras city police act, 1888 and tamil nadu gaming act, 1930. The court explained through various instances how horse racing can be considered a game of skill as the betting in horse races are based on evaluative skills and various other factors like skill and management of the jockey.

Online gambling

The state of sikkim enacted the sikkim online gaming (regulation) act, 2008, which was passed on 28 th june 2008 by the sikkim legislative assembly with dual object of controlling and regulating online gaming through electronic and non-electronic formats and to impose tax on the same within its territory. The sikkim online gaming (regulation) rules, 2009 has been subsequently enacted and the same has been amended from time to time.

The sikkim online gaming (regulation) act, 2008 was amended on august 19, 2015 restricting the offering of "online games and sports games" under the licenses issued under the said act to the physical premises of the game parlours within the geographical boundaries of the state of sikkim through intranet gaming terminals. Initially, the wording of the sikkim online gaming (regulation) act, 2008 envisaged that the license shall allow the licensee to offer its games across india without restricting it to the territory of sikkim.

The government of nagaland has enacted the nagaland prohibition of gaming and promotion and regulation of online games of skill act, 2016. The said act provides for regulation and promotion of "games of skill" through the issuance of licenses. This act provides that the license holders under the same can operate from any state in india where gambling is allowed.

Sikkim has framed legislation regulating the virtual or online gaming activities within its territory. Except for the sikkim online gaming (regulation) act, 2008 and nagaland prohibition of gaming and promotion and regulation of online games of skill act, 2016, none of the other central or state gambling legislation specifically mentions online gambling which puts online gambling involving 'game of skill' in a grey area.

In the present world where everyone is connected through internet, a person sitting in india can bet through a foreign owned website. There is no law which directly regulates/prohibits such activities in india. In the absence of any specific law directly regulating the online gaming/gambling through a server located outside india, these can be regulated through the internet intermediary compliances, cyber law due diligence requirements prescribed under the information technology act, 2000, restrictions on foreign exchange earnings and outgoes and strict enforcement of anti-money laundering laws.

Conclusion

The gambling laws in india continue to be confusing and unclear. The judiciary time again through various decided case laws have tried to clear the air and provide clarity on the subject. However, the recent technological changes have thrown open the sector and have allowed the masses to participate in activities which lie in the border line of gambling laws in india. These activities are yet to be scrutinized and tested through the courts in india. It is advisable that before someone ventures into any gambling activity in india, he/she may take a sound legal advice in respect of the same so as to avoid any unnecessary legal implications.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

India: gambling 2020

The ICLG to: gambling laws and regulations - india covers common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability – in 39 jurisdictions.

Chapter content free access

1. Relevant authorities and legislation

1.1 which entities regulate what type of gambling and social/skill gaming activity in your jurisdiction?

Relevant product

Who regulates it in digital form?

Who regulates it in land-based form?

Casino gaming (including slots and casino table games such as roulette & blackjack)

Casino gaming is regulated under state-wise anti-gambling laws in india (“gaming enactments”). Under most gaming enactments, casino games are treated as gambling activities in india, and are prohibited. This applies for both digital and land-based casino gaming.

The state of sikkim has enacted a licence regime to offer ‘online games’ through the intranet within the state of sikkim, under the sikkim online gaming (regulation) act, 2008 (“sikkim act”). This licence covers certain casino games like roulette, casino brag, and blackjack.

The authority under the sikkim act is the finance, revenue and expenditure department.

Only the states of goa, daman and diu as well as sikkim regulate casino games in land-based form. The casinos in goa, daman and diu are regulated under the goa, daman and diu public gambling act, 1976 (“goa act”). The casinos in sikkim are regulated under the sikkim casinos (control and tax) act, 2002 (“sikkim casino act”).

In the state of daman and diu, the director of tourism regulates ‘games of electronic amusement and slot machines’.

In the state of goa, the home department regulates ‘games of electronic amusement/slot machines’, as well as ‘table games’.

In the state of sikkim, the tourism department regulates ‘casino games’ in land-based form.

Please refer to question 1.2. Skill versions of poker do not have a regulator in most indian states.

Only the state of nagaland regulates online games of skill. The nagaland prohibition of gambling and promotion and regulation of online games of skill act, 2016 (“nagaland act”) categorises online poker as a game of skill.

The licensing authority in nagaland is the finance commissioner. Please refer to question 1.2 for a further discussion on poker.

As stated in the corresponding column, poker can be argued to be a game of skill and therefore exempt from most gaming enactments. This exemption would apply to even poker when played on physical premises.

Depending on the exact format of bingo, it can fall within the definition of a lottery, or under the general definition of gambling under most gaming enactments, as it is a game of chance. In case of the latter, it would be prohibited in most indian states.

Please refer to the corresponding lottery column.

Depending on the exact format of bingo, it can fall within the definition of a lottery, or under the general definition of gambling under most gaming enactments, as it is a game of chance. In case of the latter, it would be prohibited in most indian states.

Please refer to the corresponding lottery column.

If the betting is on games of chance, this is prohibited in most indian states. If it is: (i) betting on casino games, please refer above; (ii) sports betting or fantasy sports, please refer to the relevant column below.

Please refer to the corresponding column.

Sports/horse race betting (if regulated separately to other forms of betting)

Betting on horse racing has been held to be a game of skill. There is no regulator for betting on horse races online. Please refer to question 1.2 below for further details.

Currently, the status of sports betting as a game of skill is in question before the supreme court of india in the case of geeta rani v union of india & ors. (“geeta rani case”).

Only the state of sikkim permits sports betting under a licence through the intranet within the state of sikkim only, under the sikkim act. The authority in sikkim is the finance, revenue and expenditure department.

Betting on physical horse races on race courses is regulated by the turf clubs, i.E., the race courses where physical horse races are conducted in india. These turf clubs operate under a licence from their respective state governments (“licensing legislations”).

Please refer to question 1.2 below.

Fantasy betting (payment to back a ‘league’ or ‘portfolio’ selection over a period of time, for example in relation to sport or shares)

Certain skill formats of fantasy sports should be exempt from the prohibitions under most gaming enactments.

Please refer to question 1.2 below.

Only the state of nagaland has enacted a licence regime for virtual team selection games and virtual sport fantasy league games when offered online. The licensing authority in nagaland is the finance commissioner.

Please refer to the corresponding column (apart from the discussion on the state of nagaland, which only applies to online games).

Please refer to the corresponding column (apart from the discussion on the state of nagaland, which only applies to online games).

Please refer to the corresponding column.

Social/skill arrangements

“social” gaming with no prize in money or money's worth

Typically, when there is no prize of money or money’s worth offered, it is not considered to be gambling. Depending upon the format and content of these games, certain other laws may be triggered, such as intellectual property laws, content laws, e.G. Laws prohibiting obscenity or violent content, etc. Please refer to question 1.2.

There is no regulator for such games.

Please refer to the corresponding column.

Skill games and competitions with no element of chance

As discussed above, games of skill are exempted from the prohibitions under most gaming enactments. The supreme court has specifically recognised certain games as games of skill, as discussed in question 1.2 below. No licence as such is required to operate such games in most indian states.

Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act.

Please refer to the corresponding column (except for the discussion on nagaland, which would only apply to online games).

1.2 specify: (i) the law and regulation that applies to the relevant products in your jurisdiction; and (ii) – in broad terms – whether it permits or prohibits the offer of relevant products to persons located in your jurisdiction.

Under the constitution of india, the indian states have been entrusted with the power to frame state-specific laws on ‘betting and gambling’. The public gambling act, 1867 (“public gambling act”) has been adopted by certain states of india. The other states in india have enacted their own legislation to regulate/prohibit gaming/gambling activities within their territory under their gaming enactments.

Most of these gaming enactments were enacted prior to the advent of virtual/online gambling and therefore primarily refer to gambling activities taking place in physical premises, defined as “gaming or common gaming houses”. It is not a settled position of law as to whether these prohibitions extend to the online medium.

These prohibitions include:

• Owning, keeping, occupying or having care and management of a gaming house/common gaming house.


• Advancing or furnishing money for the purposes of gambling to persons frequenting any such gaming house.


• Gambling in a common gaming house or present for the purpose of gambling in common gaming house.

In some indian states, the activity of gaming/gambling per se (irrespective of the medium through which such games are offered or played) is an offence, such as in the states of assam or orissa. Operators take a conservative approach and do not offer their games in these states.

The state of sikkim has enacted a licensing regime for online games and sports games through the intranet within the state of sikkim under the sikkim act and the sikkim online gaming regulation rules, 2009 (“sikkim rules”). The state of nagaland has enacted a licensing regime for online games of skill under the nagaland act and the nagaland prohibition of gambling and promotion and regulation of online games of skill rules, 2016 (“nagaland rules”).

Most gaming enactments exempt games of “mere skill” from their prohibitions, either by operation of a direct provision or interpretation of the case laws. The supreme court of india (“SC”) has interpreted the words “mere skill” to include games which are preponderantly of skill. Whether a game is of chance or skill is a question of fact to be decided on the facts and circumstances of each case.

There is no licensing regime for games of skill at a federal level. These games operate under the exclusion for games of skill. Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act. Certain games have been specifically recognised as games of skill under the nagaland act.

Further, in the state of telangana, the telangana gaming act, 1974 was recently amended vide the telangana gaming (amendment) act, 2017 (“amendment act”) to delete the exception for games of skill from the telangana act. The amendment act is currently under challenge before the high court of hyderabad. Accordingly, even games of skill cannot be offered in telangana.

Depending upon the type of game, the prize competitions act, 1955 (“PCA”) may also apply. The PCA was enacted to regulate certain types of competitions. In the case of R.M.D. Chamarbaugwala & anr. Vs. Union of india & anr., the supreme court held that the PCA would only apply to prize competitions which were of a gambling nature. However, due to the types of games covered under the PCA (i.E., crossword prize competitions, etc.), there is an anomaly in the scope of the PCA, read with the gaming enactments, and the nature of games for which a licence is required under the PCA.

Certain other laws that would apply to gaming activities have been discussed in question 2.9 and section 3 below.

As games which are predominantly chance-based, casino games are treated as betting and gambling activities, and are therefore prohibited under most gaming enactments.

Only certain states have enacted licensing regimes for casino games:

I. Goa, daman and diu: the goa act prescribes a licence regime for ‘games of electronic amusement/slot machines’ in five-star hotels, and table games and gaming on board offshore vessels, under the terms of a licence in goa, daman and diu.

Ii. Sikkim: the sikkim casino act read with sikkim casino games commencement (control and tax) rules, 2007 (“sikkim casino laws”) also prescribe a licence regime for casino games in five-star hotels in the state of sikkim.

Iii. The sikkim act covers certain casino games such as roulette, casino brag, and blackjack. These games may be offered through the intranet within the state of sikkim only.

It can be argued that certain variations of poker are games of skill for the purpose of most gaming enactments. Accordingly, such games should be permitted to be offered in most indian states with an exemption for games of skill.

The gaming enactments/courts in certain indian states have specifically recognised poker as a game of skill:

I. The state of west bengal has specifically excluded poker from the definition of ‘gambling’ under the west bengal gambling and prize competitions act, 1957.

Ii. The nagaland act has specifically categorised poker as a game of skill.

Iii. The karnataka high court has also held that a licence is not required under the karnataka police act, 1963 (“karnataka act”) when poker is played as a game of skill.

However, recently, the high court of gujarat has held in the case of dominance games pvt. Ltd v state of gujarat & 2 ors. That poker is a game of chance and a gambling activity under the gujarat prevention of gambling act, 1887. Accordingly, poker is currently prohibited in gujarat. However, an appeal has been filed against this order and is pending before the high court.

As stated above, depending upon the format of bingo, it may fall within the definition of a ‘lottery’ or under the general definition of betting/gambling under most gaming enactments, as they are games of chance and prohibited in most indian states. For a discussion on lotteries, please refer below.

If the betting is on games of chance, this is prohibited in most indian states. However, if it is betting on casino games, please refer above. If it is sports or fantasy betting, please refer below.

Sports/horse race betting

In the case of dr. K R lakshmanan vs state of tamil nadu (“lakshmanan case”), the supreme court held that betting on horse racing was a game of skill.

Most gaming enactments have carved out an exception for ‘wagering or betting upon a horse-race’ from the definition of gaming/gambling, subject to fulfilment of certain conditions (“horse racing exemption”). However, the horse racing exemption is subject to certain conditions under the gaming enactments, such as when wagering or betting takes place on the day on which the horse has run, in an enclosure which has been sanctioned by the state government, etc.

In the case of betting on real horse races, the conditions prescribed under the horse racing exemption would need to be met. Turf clubs regulate betting on physical horse races within their premises. One of the conditions which the racing exemption is subject to is that such betting takes place within an enclosure which turf clubs have set apart for betting. Accordingly, betting on physical horse races must take place within the confines of turf clubs. Such betting would also be subject to the rules of the independent turf clubs.

The above conditions would be difficult to meet in the case of online betting on horse racing products. However, one can argue whether a horse racing product is a game of skill independent of the horse racing exemption.

While arguably the treatment of betting on horse racing as a game of skill should apply to sports betting as well, currently the status of sports betting as a game of skill is sub judice in the geeta rani case, as stated above.

Only the state of sikkim permits sports betting. An operator must obtain a licence to offer such games under the sikkim act. Such games may be offered through the intranet within the state of sikkim only. In most other states, law enforcement authorities seek to prosecute players engaged in sports betting.

Fantasy betting

It can be argued that certain versions of fantasy sports games are preponderantly skill-based games in the indian context. Accordingly, such games can be treated as exempted under the gaming enactments.

The high court of punjab and haryana has held dream 11’s format of fantasy sport to be a game of skill in the case of shri varun gumber v. UT of chandigarh & ors. (“varun gumber case”). Thereafter, the high court of bombay also recognised that the same format of fantasy sport was a game of skill in gurdeep singh sachar v. Union of india.

The nagaland act expressly recognises virtual team selection games and virtual sport fantasy league games as games of skill. If such games are sought to be offered online in the state of nagaland, a licence would be required.

The lottery laws permit state governments to organise, conduct or promote a lottery, subject to certain conditions, as stated above.

Some states regulate physical lotteries (such as sikkim), and lotteries have been banned in certain states (such as madhya pradesh). Some states specifically provide for online lotteries (such as punjab).

The state governments are empowered to appoint individuals or corporates as ‘distributors’ or ‘selling agents’ to market and sell lotteries on behalf of the organising state under the lottery laws.

Section 294 A of the IPC specifically prohibits private lotteries. Certain states have repealed section 294 A of the IPC and enacted their own legislation banning lotteries apart from non-profit lotteries (such as the states of andhra pradesh, gujarat, karnataka, maharashtra, etc.). Certain other states have introduced legislation expressly banning lotteries in their states (e.G. The state of bihar vide the bihar ban on lottery act, 1993).

Social gaming

When there is no prize of money or money’s worth offered, the game is typically not considered to be gambling under the gaming enactments. Depending upon the format and content of such games, certain other laws could be triggered, such as intellectual property laws and laws prohibiting certain types of content – such as the IPC or the information technology act, 2000 (“IT act”) which prohibits obscene content, or the indecent representation of women (prohibition) act, 1986, which prohibits depicting women in a derogatory manner.

Skill games

As stated above, games of skill are exempted from the prohibitions under most gaming enactments. Arguably, such games can be offered in both land-based and digital form in all the states in which there is such an exemption. Only the nagaland act has enacted a licence regime to regulate the online versions of such games.

The supreme court of india has recognised certain games as games of skill, such as betting on horse racing and the game of rummy. The supreme court has also dismissed a special leave petition against the order in the varun gumber case.

2. Application for a licence and licence restrictions

2.1 what regulatory licences, permits, authorisations or other official approvals (collectively, “licences”) are required for the lawful offer of the relevant products to persons located in your jurisdiction?

Depending upon the type of product, and the medium through which the relevant product is sought to be offered, licences may be required for certain products. We have mentioned these below:

• Casino: licences for offering casino products in five-star hotels in goa, daman, diu and sikkim are available under the goa act and the sikkim casino laws, respectively. Licences for offering casino products offshore in goa, daman and diu are available under the goa act.


• Poker: operators in india may offer skilled versions of texas hold’em and omaha hold’em poker without a licence in all indian states except sikkim, nagaland, telangana and gujarat. In nagaland, operators would need to procure a licence to offer such games.


• Bingo: please refer to the lottery section below.


• Betting: if it is betting on games of chance, this is prohibited in most indian states. In the case of betting on casino games, please refer above. In the case of betting on sports/horse races, please refer below.


• Sports/horse betting: in the case of betting on physical horse races, a licence would be required. This does not include foreign horse races.

In so far as betting on horse races online is concerned, there are also no licences required. Based on the lakshmanan case, it can be argued that such games are games of skill and exempt under most gaming enactments. Innovative structures can be put in place for a foreign operator to offer such games.

In the case of betting on physical horse races, the conditions under the horse racing exemption would need to be fulfilled. Further, permissions/authorisations may need to be obtained from the relevant turf club.

As stated above, the question of whether sports betting is a game of skill is pending before the supreme court in the geeta rani case. Only the state of sikkim offers a licence to offer sports betting through the intranet within the state of sikkim only.

• Fantasy betting:if the fantasy sport game qualifies as a game of skill, no licence is required for offering such products under most gaming enactments. However, a licence must be obtained for offering such games in nagaland, under the nagaland act.


• Lotteries: under the lottery laws, state governments may appoint an individual or a corporate as a ‘distributor or selling agent’ through an agreement to market and sell lotteries on behalf of the organising state. Such persons would need to obtain authorisation from the state governments. Private lotteries are prohibited in most indian states under the IPC.


• Social gaming: no licences should be required for such games in most indian states.


• Skill games: as stated above, games of skill operate under the exclusion for such games under most gaming enactments. There is no licensing regime for such games at a federal level. Only the state of nagaland has enacted a licence regime for online games of skill under the nagaland act.

2.2 where licences are available, please outline the structure of the relevant licensing regime.

There are only a small number of states in india that allow operators to conduct gambling activities under a licensing regime. For brevity, we have only highlighted key points below:

Goa, daman and diu

• Scope: the government of goa issues casino licences to operators that conduct gambling activities in five-star hotels and on offshore vessels. The goa act contains provisions on the operation of licensed games of electronic amusement/slot machines in five-star hotels as well as table and games on board offshore vessels. However, a licence can only be applied for a maximum of 20 slot machines.


• Fees: the cost of a licence is INR 20,00,000 (approx. USD 28150) for onshore and offshore casinos, regardless of the number of tables or machines installed in the licensed premises. The following annual licence fees are payable:


• About INR 250,00,000 (approx. USD 351,875) per annum, per 100 square metres for land-based casinos in five-star hotels.


• INR 700,00,000 (approx. USD 985,250) for offshore casinos.

These licence fees are subject to annual increases.

• Scope: the government of sikkim regulates and licenses operators that wish to organise gambling activities under the sikkim casino act and rules. Licensees can only conduct gambling operations in five-star hotels.

Sikkim has also enacted the sikkim act and rules under which licences are granted to offer intranet games of: (a) roulette; (b) blackjack; (c) pontoon; (d) punto banco; (e) bingo; (f) casino brag; (g) poker; (h) poker dice; (i) baccarat; (j) chemin-de-fer; (k) backgammon; (l) keno; (m) super pan 9; and (n) other sports games which involve the prediction of results of sporting events and placing a bet on the outcome, in part or whole, of such sporting event. As per the sikkim act and rules, the licensee must be a company incorporated in india, and must operate only in sikkim.

• Fees: annual fee of INR 1 lakh under the sikkim act and rules (approx. USD 1,414), and an online gaming levy of 1% of the gross gaming yield to the state government.

West bengal

• Scope: an operator can apply for a permit to organise games of skill in a public market, fair, carnival or in the street, or in any place that the public can access.


• Fees: the cost of a permit in west bengal is INR 10 (approx. USD 0.14).

• Scope: as per the nagaland act, licences are issued for offering games of skill on online media: (a) chess; (b) sudoku; (c) quizzes; (d) binary options; (e) bridge; (f) poker; (g) rummy; (h) nap; (i) spades; (j) auction; (k) solitaire; (l) virtual golf; (m) virtual racing games (including horse and car racing); (n) virtual sports (including soccer, cricket, archery, snooker, bridge, and pool); (o) virtual fighting; (p) virtual wrestling; (q) virtual boxing; (r) virtual combat games; (s) virtual adventure games; (t) virtual mystery and detective games; (u) virtual stock/monopoly games; (v) virtual team selection games; and (w) virtual sport fantasy league games.

The licensees must be entities incorporated in india, have a substantial holding stake in india, and have no criminal history; and the license is only issued to those entities which have no interest in online or offline gambling activities in india or abroad.

• Fees: first three years – annual licence fee per game: INR 10 lakhs (approx. USD 14119), or INR 25 lakhs (approx. USD 35,297) for a bouquet of games per annum; next two years: INR 20 lakhs (approx. USD 28,238), or INR 50 lakhs (approx. USD 70,595) for a bouquet of games per annum. In addition, licensees are required to pay an amount of 0.5% of the gross revenue generated as royalty.

The eligibility above should be read in conjunction with the criteria covered in question 2.9.

2.3 what is the process of applying for a licence for a relevant product?

For brevity, we have highlighted only key points below:

• Casino – A licence application must be made by indian entities to the state government, who will examine the application. After making any inquiry it considers necessary, and on satisfaction that the applicant has a five-star hotel with capabilities to operate a casino, the state government can grant a six-month provisional licence on payment of a fee of INR 1,00,000 (approx. USD 1,411). A provisional licence is issued to enable the licensee to set up the necessary infrastructure to commence the operation of casino games at any time within that period. When the applicant fully complies with the terms and conditions of the licence, the government of sikkim can grant a regular licence on payment of a fee of INR 500,00,000 (approx. USD 705,940).


• Online games – the licensee is to make an application using the form as specified in the sikkim act and rules along with an application fee of INR 500 (approx. USD 7). The state government will then conduct an inquiry if it deems it appropriate before issuing/rejecting the licence.

West bengal

• An application for a permit to host games of skill in a public place must be made to the commissioner of police if the permit is sought in kolkata, or to the district magistrate or sub-divisional magistrate if the permit is sought elsewhere in the state. Currently, under the framework of different applicable laws, an indian operator would be in the best position to apply.

• An application must be made to the licensing authority, i.E. The finance commissioner (“nagaland authority”), identifying the games for which the licence is being sought, and must be accompanied by documents in support of the credentials of the promoters, audited financials, the software technology platform, a proposed business plan, and financial projections. A non-refundable application fee of INR 50,000 (approx. USD 700) is to accompany the application.

The nagaland authority will forward the application to certain ‘empanelled firms’ (lawyers/financial experts, etc.) who assist the state government in scrutinising all applications. The empanelled firms will then revert with either their certification or recommendations to the applicant within 30 days. The nagaland authority will also have the right to refer the application to an ‘ad hoc committee’ or an ‘expert committee’ to determine whether the recommendations of the empanelled firms are required to be adopted. These committees are required to make their recommendations within two weeks. The nagaland authority will then issue the licence to the application within 14 days of receipt of certification of the empanelled firms.

2.4 are any restrictions placed upon licensees in your jurisdiction?

For brevity, we have only highlighted key points below:

West bengal

• While the wording of the law does not expressly prohibit a foreign operator from applying for a permit, an indian entity would be best placed to apply bearing in mind the application of the other laws described in this chapter.

I. Should the licensees offer games under the licence in other states in violation of the provisions of the nagaland act or their local statutes, it may bring these violations to the notice of the nagaland authority;

Ii. Operations and technology support are controlled and maintained in india; and

Iii. The games must be offered only to those above the age of 18.

Sikkim – online

I. The licensee must provide certain details of the licence on their website/online portal;

Ii. The ‘OGS’ or the computer/system through which the games are conducted are to be certified by the state government; and

Iii. The games must be offered only to those above the age of 18.

2.5 please give a summary of the following features of any licences: (i) duration; (ii) vulnerability to review, suspension or revocation.

For brevity, we have only highlighted key points below:

• Nagaland: the licence will be valid for five years, subject to compliance with any prescribed conditions, and will be deemed to be renewed every year thereafter as long as the licence fee is paid. The delay in payment of the licence fee would result in a penalty of 12% per annum.


• Sikkim: the licence (unless cancelled or surrendered) will be valid for five years. The licence may be renewed on an application being made.


• Goa, daman and diu: five years.


• West bengal: permits are issued for specific events. The duration of a permit can be as short as a single day.

Vulnerability to review/suspension/revocation:

For states, such as nagaland, sikkim, west bengal and goa daman and diu, the licences would be suspended/terminated on a contravention of the licence terms, or of the law under which they were issued. Additional points to note are as follows:

• Nagaland: in the event of a breach, the nagaland authority shall issue a show cause as to why the licence should not be cancelled, and the licence holder has the right to make a written as well as an oral representation. However, the violation shall be compounded if the breach is remedied in 30 days.


• Sikkim: on a breach, the state government may suspend or cancel the licence after giving the licensee a reasonable opportunity to be heard.

2.6 by relevant product, what are the key limits on providing services to customers? Please include in this answer any material promotion and advertising restrictions.

In addition to our response to question 2.4, most gambling state enactments prohibit the printing, publishing, selling, distributing or circulating in any manner any newspaper, news sheet or other document, or any news or information, with the intention of aiding or facilitating gambling. These restrictions, however, should not apply to skill games. The IPC prohibits advertisements for lotteries, unless they comply with the provisions of the lottery laws. The advertising of prize competitions is prohibited, unless it has been duly authorised by the relevant authority. Games and gaming websites in india, and gambling operators’ websites in the states of nagaland and sikkim, are subject to content-related laws. For example:

I. The IPC, IRWA and IT act penalise obscene content.

Ii. The consumer protection act, 1986, is soon to be replaced by the consumer protection act, 2019 (“CPA”). The CPA classifies the offering of prizes with the intention of not providing them as offered/the conduct of a contest, lottery, game of chance or skill for the purpose of promoting a product/business interest as an ‘unfair trade practice’.

Iii. The copyright act 1957, the trade marks act 1999 and the patents act 1970 govern IP issues related to games (such as the use of trade marks, copyright, design rights and patent rights in the technology infrastructure of web operators).

The advertising of gambling is regulated by the telecom commercial communications customer preference regulations 2010, which prohibit unsolicited commercial communications to persons that have opted out of receiving them. These regulations also provide that telemarketing can only be carried out by operators that have obtained a licence from the telecom regulatory authority of india. The advertising standards council of india (“ASCI”) has released a self-regulatory code which is binding on the television/broadcasting industry; and, therefore, gambling advertisements on television. This code prohibits the propagation of products, the use of which is banned under the law.

• Sikkim: in the state of sikkim, licensees can advertise online games, provided that they comply with certain requirements. For example, advertisements of online games must:

I. Include the address of the online gaming operator’s website, which must include certain prescribed information.

Ii. Not be indecent or offensive.

Iv. Not be directed at any person under the age of 18.

V. Not be directed at any jurisdiction in which online games are prohibited.

• Nagaland: the nagaland act and rules permit the licensee to advertise on online and offline mediums, and they are allowed to display the fact that they hold licences from the government of nagaland.

2.7 what are the tax and other compulsory levies?

As per the indian income tax laws, any income, by way of winnings from any lottery or crossword puzzle or card game and other game of any sort, exceeding INR 10,000, is subject to a withholding tax of 30% (exclusive of applicable surcharge and cess). However, in cases where the winnings are wholly in kind, or partly in cash and partly in kind, and the cash component is insufficient to honour the withholding obligation in respect of the whole of the winnings, then the payor is required to ensure that the tax at the above rate is paid before the release of the whole winnings to the payee.

Under the goods and services tax (“GST”) laws, services by way of admission to entertainment events or access to casinos, etc. Is taxable at the rate of 28%. Further, GST at the rate of 28% is applicable on the betting or gambling services provided by casinos on the transaction value of the betting.

In the event a gaming activity does not fall in the nature of betting or gambling (i.E. In case of a game of skill), no GST may be levied. However, GST may be levied on the consideration amount payable/collected for the supply of goods or services or both on a gaming platform at the rate of 18%. Please note that to ascertain the rate of taxation, the exact nature of the product offering should be analysed.

2.8 what are the broad social responsibility requirements?

Most gaming enactments do not prescribe social responsibility requirements for gaming operators, since they have been enacted to prohibit gaming activities. The nagaland rules prescribe some requirements for online games of skill offered within the state, such as by prescribing that only players above the age of 18 are permitted to play for stake on operators’ platforms.

However, in the absence of regulation, the gaming industry in india has taken the initiative to self-regulate and prescribe standards for social responsibility. Certain self-regulatory industry associations, such as the all india gaming federation (“AIGF”) and the indian federation of sports gaming (“IFSG”), have prescribed such standards in their skill charters.

These requirements include:

• Player protection measures such as options for self-exclusion, age-gating, etc.


• Transparency requirements such as disclosing the terms and conditions on gaming platforms, as well as the mechanics and rules of all games.


• Provisions to regulate the content, duration, and targeted audience of gaming advertisements.


• Financial integrity, i.E., regulating the funds deposited by the player, requirements to maintaining records of transactions, etc.

2.9 how do any AML, financial services regulations or payment restrictions restrict or impact on entities supplying gambling? Does your jurisdiction permit virtual currencies to be used for gambling and are they separately regulated?

• Prevention of money laundering act, 2002 (“PMLA”)

In india, the PMLA prohibits money-laundering activities. Under the PMLA, entities carrying out the activities for playing games for cash or kind (including casinos) are also required to adhere to the provisions of the PMLA. Such entities are classified as ‘reporting entities’ under the PMLA.

As per section 12 of the PMLA, reporting entities are required to maintain records of transactions and documents evidencing the identity of their clients in accordance with the rules.

• Foreign exchange management act, 1999 (“FEMA”)

Under the FEMA, read with foreign exchange management (current account transaction) rules, 2000 (“current account rules”), remittance for the following is prohibited.

A) remittance out of lottery winnings.

B) remittance of income from racing/riding, etc., or any other hobby.

C) remittance for purchase of lottery tickets, banned/ prescribed magazines, football pools, sweepstakes, etc.

Skill games may be covered under the above prohibitions, especially under the heading ‘any other hobby’.

• Payment and settlement systems act, 2007 (“PSS act”)

Payment systems, both traditional and electronic in india, are regulated by the PSS act. Processing functions typically involve clearing, payment and settlement, which constitute the core functions of a payment system as per the definition under the PSS act. These functions are highly regulated by the reserve bank of india (“RBI”) as well as various statutes. Accordingly, payment service providers offering services to gaming operators may need to obtain authorisation from the RBI depending upon the types of functions that they undertake. Payment gateways and closed loop wallets are not treated as payment systems.

• Black money (undisclosed foreign income and assets) and imposition of tax act, 2015 (“black money act”)

The central board of direct taxes (“CBDT”) had released a circular with certain “clarifications on tax compliance for undisclosed foreign income and assets” (“circular”) under the black money (undisclosed foreign income and assets) and imposition of tax act, 2015 (“black money act”).

The circular clarified that a person having funds subject to tax in india, but on which tax was not paid, lying in offshore
e-wallets/virtual card accounts maintained with online gaming/ poker websites and having made profits therefrom is required to disclose to the indian tax authorities all the details in relation to these accounts. The circular stated that that an e-wallet/virtual card account would be considered similar to a bank account where inward and outward cash movement takes place. Hence, the same valuation and declaration of such accounts should be made by persons as in the case of a bank account, in order to comply with certain tax compliance requirements under the black money act.

3. Online/mobile/digital/electronic media

3.1 how does local law/regulation affect the provision of the relevant products in online/mobile/digital/electronic form, both from: (i) operators located inside your jurisdiction; and (ii) operators located outside your jurisdiction?

For operators located within india:

• Under the gaming enactments: the gaming enactments in india are state-specific. Most gaming enactments prohibit gambling activities in physical premises termed ‘common gaming houses’. Some states specifically prohibit/regulate such games in online form. Whether online games are prohibited/ regulated within the state would need to be tested under the gaming enactment of each specific state.


• Under the lottery laws: the lottery laws and section 294 A of the IPC should apply to domestic operators.


• Under the PCA: the PCA should apply to domestic operators.


• Under the IT act: the IT act applies to the internet medium and allows the government and the courts the power to order the blocking of websites hosting unlawful content.

Under the information technology (intermediary guidelines) rules, 2011, internet intermediaries are required not to knowingly host/publish information ‘relating to or encouraging gambling’.

• Under FEMA: since there would be no remittance of money by the indian player offshore, FEMA and the current account rules would not be attracted.


• Under PMLA: the requirements under PMLA discussed above would apply to operators located within india.


• Under the PSS act: the PSS act discussed above would apply to payment service providers located within india.

For operators located outside india:

• Under the gaming enactments, the PCA, and the lottery laws: the extra-territorial applicability and enforcement of these laws against foreign entities is debatable. It would need to be tested under each state law in which such products are sought to be offered. However, practically, enforcement against foreign operators would be a challenge.


• Under the IT act: websites offered by foreign operators may be blocked by indian governmental authorities and courts, as discussed above.


• Under FEMA: FEMA and the current account rules prohibit gambling-related outward remittances as discussed above. Accordingly, FEMA applies to outward remittances to offshore gaming operators.


• Under PMLA: entities incorporated or established abroad should not be covered as reporting entities under the PMLA.


• Under the PSS act: the licensing regime for payment systems under the PSS act does not cover foreign payment providers when they provide services in relation to offshore merchants.

3.2 what other restrictions have an impact on relevant products supplied via online/mobile/digital/electronic means?

Please refer to our response to question 3.1. All of the laws above, especially the IT act, would be applicable.

Excluding the nagaland and sikkim acts, the gaming enactments are pre-internet pieces of legislation and were not amended after the advent of the internet. In these enactments, gaming in a common gaming house is prohibited, and they do not distinguish between physical and online offerings. There are primarily two schools of thought:

(1) penal statutes such as these must be interpreted strictly as not being applicable to online offerings.

(2) the approach would be that all technological advancements should be read within the scope of the gaming enactments, which would hence be applicable.

3.3 what terminal/machine-based gaming is permitted and where?

As discussed in our response to question 1.2, the states of goa, daman and diu, and sikkim allow for terminal/machine-based gaming.

4. Enforcement and liability

4.1 who is liable under local law/regulation?

Under the gaming enactments, most offences and prohibitions are in relation to a ‘gaming house’ or a ‘common gaming house’ (except in states such as assam and orissa, where the activity of gaming, irrespective of the medium or location, may be a punishable offence). These gaming enactments provide for various offences with respect to gaming/gambling. The liability for offences under the gaming enactments usually vests upon:

I. The owner of the gaming/common gaming house.

Ii. The person keeping or having charge of the gaming/common gaming house.

Iii. The person gambling/person found in the common gaming house or possessing instruments or records of betting or suspected of gambling or possessing such instruments.

Iv. The person ‘assisting’ in conducting the business of any common gaming house.

V. Specific to sikkim, (a) a licensee under the sikkim act, (b) any person/operator acting on his behalf, or (c) an operator who does not obtain a licence under the sikkim act, but offers online games, sports betting, or both.

Vi. Specific to nagaland, a licensee under the nagaland act.

Under FEMA, the onus of compliance is on the indian resident party making the remittance outside india and not the foreign party receiving the remittance.

Under the IPC, the abetment of offences is also prohibited. Abetment has been defined as intentionally aiding such offences, whether by acts or illegal omissions.

4.2 what form does enforcement action take in your jurisdiction?

While the gaming enactments more or less prescribe fines and/or imprisonment; the amount of fine and period of imprisonment may differ from state to state.

The public gambling act imposes a penalty of INR 200 (approx. USD 2.9) or imprisonment for a term not exceeding three months for owning, keeping or having charge of a gaming house, and a fine of INR 100 (approx. USD 1.45) or imprisonment for a term of one month for being found in a gaming house.

The bombay prevention of gambling act, 1887 imposes a fine and imprisonment for offenders. A first offence is punishable with a fine and imprisonment of at least INR 500 (approx. USD 7.2) and three months respectively; a second offence with a fine and imprisonment of at least INR 1,000 (approx. USD 14.4) and six months respectively and a third or subsequent offence with a fine and imprisonment of at least INR 2,000 (approx. USD 28.7) and imprisonment for one year, respectively. In states such as nagaland, the fines for contravention might be significantly higher. For brevity, these have not been included.

Please refer to our response to question 3.1 for enforcement action under other laws.

4.3 do other non-national laws impact upon liability and enforcement?

Please note that this chapter refers only to the impact of indian laws on activities overseas (including in india). Readers should refer to the laws of other countries for the impact of those laws on activities overseas.

4.4 are gambling debts enforceable in your jurisdiction?

No, under section 30 of indian contract act, 1872, wagering contracts are void and cannot be enforced. There are certain exemptions provided under said section.

4.5 what appetite for and track record of enforcement does your local regulatory authority have? Have fines, licence revocations or other sanctions been enforced in your jurisdiction?

The majority of the gaming enactments are archaic and were enacted before the internet gained popularity. In the context of brick-and-mortar gaming houses, these fines and prohibitions have been enforced over a period of time. In the context of online gaming, since the industry has been around only for a couple of years, there isn’t enough of a record of enforcement on which to draw conclusions. While there are certain cases pending in courts (which we have highlighted through this chapter), not all cases are reported in the public domain. From the information that is available today and matters that are on public record, we understand that most cases are being heard and disposed of at the trial stage.

However, because of the increasing popularity of online gaming sites, authorities have become more active over a period of time. By way of example, earlier in 2019, the jaipur police arrested two individuals for facilitating bets on betfair.Com by using virtual private networks (“vpns”), thereby circumventing the geo-blocking measures which betfair had put in place for indian customers.

5. Anticipated reforms

5.1 what (if any) intended changes to the gambling law/regulations are being discussed currently?

Policy changes

• The law commission of india released its report entitled ‘legal framework: gambling and sports betting including in cricket in india’ (“report”) on july 5, 2018. A day after releasing the report, the commission released a press note stressing that its recommendation was to ban betting and gambling in india. However, if the central government or state governments did consider regulating it, the report set out some positive and logical measures to combat certain industry issues. The report is under consideration by the government.


• On december 28, 2018, the sports (online gaming and prevention of fraud) bill, 2018 (“sports bill”) was introduced as a private members’ bill in the lok sabha. The sports bill was introduced on the heels of the report. The statement of objects and reasons accompanying the sports bill has underscored that it has been introduced with the dual aims of (i) preserving integrity in sports, and (ii) introducing a regulatory regime for online sports betting. However, with the dissolution of parliament prior to general elections, the sports bill lapsed. It has not been re-introduced.


• The AIGF has written to the prime minister of india demanding that the enforcement directorate investigate and take action against offshore betting websites that are illegally offering websites to indian citizens and accepting bets from india, in contravention of the IT act and FEMA.

Pending litigation

Some of the key pending litigation cases are highlighted below.

• As stated above, the question of whether sports betting is a game of skill is pending before the supreme court. If the judgment concludes that sports betting is a game of skill, it will be exempt from most gaming enactments and can be offered in most indian states which recognise an exemption for games of skill.


• In so far as poker is concerned, an appeal is pending against the judgment of the high court of gujarat which has held that poker is a game of chance/gambling activity.


• Further, as has been stated, the telangana gaming act, 1974 was recently amended to delete the exception for games of skill from the telangana act vide the telangana gaming (amendment) act, 2017 (“amendment act”). The amendment act is currently being challenged before the high court of hyderabad.


• The kerala high court in the case of ramachandran K v the circle inspector of police has held that playing rummy for stakes would amount to the offence of gambling under the kerala gaming act, 1960. Previously, in the landmark judgment of state of andhra pradesh v K satyanarayana, the supreme court had held that 13-card rummy was mainly and preponderantly a game of skill. A review petition was filed against this order, but this petition was dismissed. The court held that whether rummy, when played for stakes, would amount to gambling would have to be decided on a case-by-case basis. A court would need to consider the manner in which the games were conducted online, and what the stakes involved were.


• In a case before the high court of delhi, a petitioner has sought a complete ban on online gambling websites from operating in india (both indian and foreign). The petitioner has sought certain directions from government entities that taxes are recovered from persons engaged in such gambling activities, and violations of FEMA are checked. This petition is targeted only at games of chance and has named poker, nap, sports betting, fantasy sports and election result prediction-related games as an illustrative list.

Legally illegal, but you can bet online in india

Betting or gambling is illegal in most of india. But there is no law that makes online betting an illegal activity. Somshuvra laha reports.

Betting or gambling is illegal in most of india. But there is no law that makes online betting an illegal activity. Offshore betting companies are apparently using this ‘loophole’ to lure indians to bet on pretty much everything. The indian premier league (IPL) tops their lists now and some websites have even hooked up with offshore betting agencies, thereby allowing indians to place online bets.

One of the advisory websites, indiabet.Com, claims they don't take bets but help get in touch with international online bookmakers.

"to bet on IPL games with real money, all you have to do is click on the link of the bookmaker you want to use. You then can sign up with the bookmaker by opening an

account

With them. Then go to the cricket section of their website, where they will list all the IPL games that you can bet on. There you can choose which matches to bet on,” says indiabet.Com.

Not only matches, you can bet on possibly every aspect of an IPL match, from the toss to how the bowlers will fare and the odds on a batsman scoring a hundred.

The website also suggests the names of online betting agencies such as william hill, bet365, ladbrokes and betfair for placing bets. It also has a video on how to open an online account at one of the betting agencies. To pre-empt possible legal hassles, the website clearly mentions how and why it facilitates online betting.

“the question of whether it is legal to bet from india using an international bookmaker is not clear in law. While bookmakers in india are illegal, there is no specific law in india which bans an individual customer from placing an online bet with a bookmaker based outside india,” the website says.

All these agencies, according to indiabet.Com, accept online betting accounts with indian address. It even goes on to say that bet365, one of the largest betting agencies in the united kingdom, will ‘accept bets from customers in every state of india’.

No response william hill didn’t respond to HT’s mail at the weekend, asking whether it was aware of betting laws in india.

“according to the public gambling act (1867), all kinds of gambling in india are illegal,” said vikrant pachnanda, a delhi high court advocate and managing editor of india law journal, a periodical that expresses views on topical legal issues.

“but unlike in the US where there is the american internet gambling prohibition act, no specific laws exist in the indian system that bar online gambling,” said pachnanda.

It also becomes difficult to catch internet gambling offenders if the websites are hosted by servers located in countries where betting is legal. “enforcing the act becomes difficult if the servers are located offshore,” said pachnanda.

“on 4 march 2009, the government of sikkim (finance, revenue and expenditure department) issued a memorandum known as sikkim online gaming (regulation) rules, 2009. This outlines the rules and regulations for online gambling licensing within that state.

“however, if an indian resident decides to place bets on a website hosted outside the country, it would be difficult to hold him guilty of online gambling if the laws of the country where the website is hosted, permits online gambling,” he said.

“this is why india should enact a specific internet gambling law.”

Online gaming laws in india

With the world trying to shift its paradigm on the years-long debate over online gaming and gambling, indian laws are also evolving to put a halt on the questions of morality and ethics.

Game vs. Gamble:

There are no specific laws dedicated to online gaming, online fantasy sports, online poker, etc. In india which makes it difficult for the gaming enthusiasts to indulge into the uncertain world of online gaming. The supreme court rejected a petition related to the legality of online poker, online rummy and online card games in india.

Supreme court accepts lottery and horse racing as legal, but the laws regarding other games are still hazy.

Virtual stakes:

The advent of the internet has expanded the horizons of the gaming industry, but in the absence of appropriate regulations, online gaming in india in many states is controlled by the available gaming and gambling legislation. Only a few states have answered the quandary of online gaming laws.

• The state of sikkim has regulations applicable to the online gaming is the gaming is the sikkim online gaming (regulation) act, 2008 & rules, 2009 which allow certain games to be played within the boundaries of the state.


• Newly formed state of telangana would be framing laws based on their ordinance where they plan to ban all sort of online betting and betting.


• The north-eastern state of nagaland permits online gaming involving stakes by mandating the requirement of a license for the same through the nagaland prohibition of gambling and promotion of online games of skill act, 2016 and rules, 2016.

While some states have maintained an unambiguous stance over playing online games on their premises, others have strictly prohibited betting in any form within their boundaries:

• The state of assam has forbidden online gaming under assam game and betting act, 1970.


• The eastern state of odisha also bans online gaming under implementation of the orissa (prevention of) gambling act, 1955.

The law and the legality:

Although the game of skill is not considered as gambling, the district court of delhi observed that when skill-based games are played for money in virtual space, the same would be regarded as illegal as the degree of manipulations increase in the virtual area.

Central legislation must uniformly distinguish and regulate the online game of skill and gaming on the online platform.

There persists the requirement of central legislation to uniformly distinguish and regulate the online game of skill from gambling on the online platform.

Internet casino india law

At present in india, there is no central statutory agency or uniform legislation regulating the advertising industry. The indian advertising market as a whole is regulated and controlled by a non-statutory body, the advertising standards council of india (ASCI). In the absence of uniform integrated legislation, it is necessary for advertisers to ensure that an advertisement is in compliance will all local and national advertisement laws.

1.1 role of the advertising standards council of india (ASCI)

ASCI is a voluntary self-regulatory council established in 1985 to promote responsible advertising and to enhance public confidence in advertisements. The council's objectives are:

• To ensure the truthfulness and honesty of representations and claims made by advertisements


• To ensure that advertisements are not offensive to generally accepted standards of public decency


• To safeguard against the indiscriminate use of advertising for the promotion of products regarded as hazardous to society or to individuals.


• To ensure that advertisements observe fairness in competition so as to inform the consumer on choices in the marketplace while observing the canons of generally accepted competitive behavior in business

ASCI consists of a board of governors and a consumer complaints council. The board of governors comprises four members from each of the four sections connected with the advertising industry:

• Advertisers


• Advertising agencies


• Media (owners of press, television, radio etc.)


• Related sectors (e.G. Outdoor agencies, PR, market researchers, ad producers, business schools)

1.2 the ASCI code: self-regulation of advertising

To regulate advertisement in india, ASCI has adopted a code for self-regulation in advertising ("ASCI code"), which applies to all involved in the commissioning, creation, placement, or publishing of advertisements. This ASCI code applies to advertisements read, heard, or viewed in india even if they originate or are published abroad so long as they are directed to consumers in india or are exposed to a significant number of consumers in india.

Though non-statutory, the ASCI code is recognized under various indian laws in addition to being adopted by advertising-industry bodies. Notably, the ASCI code provides that it is not in competition with any law,its rules, or the machinery through which they are enforced, thus the ASCI code is designed only to complement legal controls under such laws and not to usurp or replace them.

1.3 laws: statutory regulation of advertising

Complementing the ASCI code are indian laws governing specific media, specific populations, and specific goods and services. The most significant of these laws are listed here.

Laws governing media

• The press council act 1978


• Cable television network rules, 1994


• Code for commercial advertising on doordarshan and all india radio


• Electronic media monitoring centre (EMMC)


• Norms for journalist conduct issued by the press council of india


• Code of conduct of the news broadcasters association

Laws protecting society and the consumer

• Emblems and names (prevention of improper use) act, 1950


• Young persons (harmful publications) act, 1956


• Companies act, 1956


• Standards of weight & measures act, 1976


• Indecent representation of women (prohibition) act, 1986


• Consumer protection act, 1986


• Laws related to intellectual property rights

Industry-specific laws

• The drugs and cosmetic act, 1940


• The transplantation of human organs act, 1994


• The drugs and magical remedies (objectionable advertisements) act, 1954


• The prenatal diagnostic techniques (regulation and prevention of misuse) act, 1994


• Advocates act, 1961


• Infant milk substitutes, feeding bottles and infant foods (regulation of production, supply and distribution) act, 1992


• Securities and exchange board of india act, 1992


• The prize chits and money circulation schemes (banning) act, 1978


• Cigarettes and other tobacco products (prohibition of advertisement and regulation of trade and commerce, production, supply and distribution) act, 2003


• Public gambling act, 1867, the lotteries (regulation) act, 1998 and the prize competitions act, 1955


• Indian medical council (professional conduct, etiquette and ethics) regulations, 2002


• The food safety & standards act, 2006

2 products and services banned from advertising

2.1 tobacco

The cigarettes and other tobacco products (prohibition of advertisement and regulation of trade and commerce, production, supply and distribution) act, 2003 ("tobacco prohibition act") prohibits all direct and indirect adertising of tobacco products in all media.

2.2 human organs

The transplantation of human organs act, 1994: this law provides for the regulation of removal, storage and transplantation of human organs for therapeutic purposes and for the prevention of commercial dealings in human organs. This law prohibits any advertising inviting persons to supply, offering to supply, any human organ for payment.

2.3 magical remedies

The drugs and magical remedies (objectionable advertisements) act, 1954 prohibits advertisement of magical remedies of diseases and disorders.

2.4 services for pre-natal determination of sex

The prenatal diagnostic techniques (regulation and prevention of misuse) act, 1994 prohibits advertisements relating to pre-natal determination of sex.

2.5 infant formula

Advertising forbidden in order to encourage natural feeding of infants. See details under food.

2.6 prize chits and money circulation schemes

The prize chits and money circulation schemes (banning) act, 1978 prohibits advertisements relating to prize chit 2 and money circulation schemes.

2.7 physicians

Under the indian medical council (professional conduct, etiquette and ethics) regulations, 2002, issued under the indian medical council act, 1956, physicians are not allowed to advertise their services in any form or manner of advertising through any mode, as soliciting of patients directly or indirectly, by a physician, by a group of physicians, or by institutions or organizations is unethical. (A physician refers to a doctor with a qualification of MBBS or MBBS with a postgraduate degree/diploma or with an equivalent qualification in any medical discipline.) however, medical practitioners are allowed to make a formal announcement in press regarding the following:

• On starting practice


• On change of type of practice


• On changing address


• On temporary absence from duty


• On resumption of another practice


• On succeeding to another practice


• Public declaration of charges

2.8 legal services

The bar council of india rules formulated under the advocates act 1961 strictly enforce the advertisement ban and publicity rules governing law firms' websites. These rules were enacted and enforced to curb the false advertisement of lawyers to gain publicity to attract clients.

3 regulations related to product and service advertising

3.1 alcohol (beer, wine, and spirits)

The cable television network rules, 1994, the advertising codes of doordarshan, and the all india radio and norms for journalist conduct issued by the press council of india prohibit any advertisement directly or indirectly promoting the production, sale, or consumption of cigarettes, tobacco products, wine, liquor, or other intoxicants. However, some states allow advertising through billboards, signboards etc. But subject to many restrictions. Also, the ASCI code prohibits use of minors for advertising alcohol products.

3.2 professionals such as chartered accountants, company secretaries & cost accountants

These professionals are prohibited from soliciting clients or professional work by advertisement. However, they may issue advertisements about their firm or services of their firm, through any mode of transmission, having inter alia details of names of partners, address and website, telephone, mobile, e-mail, fax number of the member, year of establishment, additional recognized qualifications, languages spoken by the partner(s), honours or awards in the field of teaching, research, authorship etc.

3.3 firearms, weapons, and ammunition

Sale and purchase of such items requires a license from government authorities. Therefore, advertisements related to such products are not permissible in india under the arms act, 1959.

3.4 food

As per the food safety & standards act, 2006, no advertisement relating to the standard, quality, quantity or grade-composition, and no representation concerning the need for, or the usefulness of any food can be made which is misleading or deceiving or which contravenes the provisions of this law or rules and regulations made thereunder.

3.5 infant milk food

The infant milk substitutes, feeding bottles and infant foods (regulation of production, supply and distribution) act, 1992 prohibits the advertising of infant milk substitutes or feeding bottles.

3.6 gaming (gambling, games of chance; differentiate between private-sector and "state" lotteries) 3

The federal structure in the constitution of india explicitly gives the states the right to legislate upon "gambling and betting". The public gambling act, 1867 prohibits gambling activities in india. However, the public gambling act permits games of mere skill. In april, 2011, the information technology act, 2000 was also amended to ban internet gambling and online betting websites. The lotteries (regulation) act, 1998 gives power to the concerned state government to hold lotteries subject to prescribed conditions. Under section 294-A of the indian penal code, advertisements of a lottery unless it is in accordance with the lotteries (regulation) act shall be punishable.

The prize competitions act, 1955controls and regulates prize competitions in certain parts of india and prohibits the advertisement of unauthorized prize competitions.

3.7 medical devices

The authority principally responsible for regulating medical devices in india is the central drugs standard control organization ("CDSCO") under the provisions of the drugs & cosmetics act, 1940. CDSCO's functions include regulating the medical devices industry by approving for import, manufacture and sale of medical devices in india.

3.8 medical services

An institution run by a physician for a particular purpose such as a maternity home, nursing home, private hospital, rehabilitation centre or any type of training institution etc. May be advertised in the lay press, but such advertisements should not contain anything more than the name of the institution, type of patients admitted, type of training and other facilities offered and the fees. Please also see 2.7 above.

3.9 nutritional supplements: it is regulated under the food safety and standards act, 2006.

3.10 occult ("psychic") services

These services are not legally recognized in india and are not permissible under the drugs and magical remedies (objectionable advertisements) act, 1954

3.11 pharmaceuticals (over-the-counter and prescription medications)

The phrase over-the-counter (OTC) has no legal recognition in india. All the drugs not included in the list of "prescription-only drugs" are considered to be non-prescription drugs (or OTC drugs). Prescription-only drugs are those medicines that are listed in schedules H and X of the drug and cosmetics rules, 1945.

3.12 tests and lab analysis

The drugs and cosmetic act, 1940 prohibits advertisements for any drug or cosmetic from using reports of tests or analysis of the central drugs laboratory or by a government analyst.

3.13 political candidates, political platforms, political parties, political issues

The representation of the people (amendment) act, 1996 has the following provisions relating to advertisements:

1. Prohibit advertisements for a period of forty-eight hours ending with the hours fixed for conclusion of polling for any elections in a given polling area.


2. Use of displaying posters, signboards etc. For political advertisement in any public place strictly in accordance with the relevant provisions of the local laws.


3. Equitable opportunity to all political parties and candidates to have access to public advertisement space for election related advertisements during the election period.


4. Use of private premises for political advertisement only with the voluntary permission of the occupant.


5. Prohibition of any and all advertisements at the cost of the public exchequer regarding achievements of the political party/ruling government.

The statute provides for a penalty of imprisonment and/or fine for anyone, including advertisers, who contravenes these provisions.

3.14 products related to sexuality (condoms, ED drugs, etc.)

Advertisements related to sexuality are allowed with the provision that there should not be any indecent representation of women under the indecent representation of women (prohibition) act 1986. Products must comply with the drugs and cosmetic act 1940 and other certification rules under the cable television network rules 1994.

3.15 religion

Under the cable television networks rules 1994, advertising codes of doordarshan & all india radio and norms for journalist conduct issued by the press council of india, advertisement based on religion or to hurt religious sentiments are not allowed. Also, such advertisement may be punishable under indian penal code 1860.

3.16 securities

The securities and exchange board of india (prohibition of fraudulent and unfair trade practices relating to securities market) regulations, 2003 issued under section 30 of the securities and exchange board of india act, 1992 prohibits fraudulent or unfair trade in securities. These regulations further provide that dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves an advertisement that is misleading or contains distorted information and which may influence the decision of the investors.

3.17 sexual services

Advertisement pertaining to sexual services is illegal in india.

3.18 tobacco products (cigarettes, cigars, snuff, pipe tobacco)

3.19 toys

There is no specific restriction on the advertisement of toys provided they are in compliance with other applicable laws.

3.20 advertisement by companies

The companies act 1956stipulates that no deposits from the general public should be accepted by public companies (other than non-banking financial companies) without issuing advertisement following the prescribed norms. The companies act has also specified various provisions relating to advertisement by indian companies.

3.21 advertisement relating to packaged goods, etc.

The standards of weight & measures act, 1976 prohibits issuing advertisements otherwise than in accordance with the provisions of this law.

4. Regulations related to advertising methodology

4.1 advertising to children (advertising during and immediately before and after children's programming)

The young persons (harmful publications) act, 1956 prohibits advertisements relating to any harmful publication i.E., any publication that tends to corrupt a young person (person under the age of 18 years) by inciting or encouraging him or her to commit offenses or acts of violence or cruelty or in any other manner whatsoever.

According to the ASCI code, advertisements addressed to minors shall not contain anything, whether in illustration or otherwise, which might result in their physical, mental, or moral harm or which exploits their vulnerability. For example, advertisements may not:

• Encourage minors to enter strange places or to converse with strangers in an effort to collect coupons, wrappers, labels or the like


• Feature dangerous or hazardous acts which are likely to encourage minors to emulate such acts in a manner which could cause harm or injury


• Show minors using or playing with matches or any inflammable or explosive substance; or playing with or using sharp knives, guns, or mechanical or electrical appliances, the careless use of which could lead to their suffering cuts, burns, shocks, or other injury


• Feature minors in promoting tobacco or alcohol-based products


• Feature personalities from the field of sports, music, or cinema for products which, by law, either require a health warning in their advertising or cannot be purchased by minors.

4.2 celebrity endorsements

4.3 comparative advertising (ads that compare the advertiser's product to that of a competitor)

The provisions pertaining to comparative representation were part of "unfair trade practice" under the monopolies and restrictive trade practices act, 1969 (MRTP act). After repeal of the MRTP act, the provisions relating to unfair trade practices were inserted in the consumer protection act, 1986. However, a business entity cannot claim relief against unfair comparative advertising under the consumer protection act, as a business entity is not a consumer. This can be taken up only by consumer associations, the central government, or state governments, and it does not provide protection to the business entity equal to the protection under the MRTP act. Thus, under the existing law, a manufacturer whose goods are disparaged has no standingto seek a remedy. Presently, in the absence of any specific legislative regulating comparative advertising, disputes are decided by various courts on the basis of the facts in each case. However, ASCI code (which is made part of the cable television network rules, 1994 as well) permits advertisement containing comparisons including those where a competitor is named in the interests of vigorous competition and public enlightenment, provided:

1. It is clear what aspects of the advertiser's product are being compared with what aspects of the competitor's product.


2. The subject matter of comparison is not chosen in such a way as to confer an artificial advantage upon the advertiser or so as to suggest that a better bargain is offered than is truly the case.


3. The comparisons are factual, accurate and capable of substantiation.


4. There is no likelihood of the consumer being misled as a result of the comparison, whether about the product advertised or that with which it is compared.


5. The advertisement does not unfairly denigrate, attack or discredit other products, advertisers or advertisements directly or by implication.

Presently, ASCI is actively taking action against any advertisements making unsubstantiated claims, exaggeration, unfair denigration in violation of ASCI code.

4.4 contests (games of chance and games of skill)

The public gambling act, 1867 prohibits gambling activities in india. However, the public gambling act permits games of mere skill.

4.5 deceptive or misleading advertising

Deceptive or misleading advertisements are restricted under the various legislations including the consumer protection act, 1986; cable television network rules, 1994; norms for journalist conduct issued by the press council of india act and ASCI code.

4.6 surrogate advertising

The ASCI code provides that advertisements of products whose advertising is prohibited or restricted by law or by the ASCI code must not circumvent such restrictions by purporting to be advertisements for other products the advertising of which is not prohibited or restricted by law or by ASCI code. To determine if there is an indirect advertisement of prohibited products due attention shall be given to the following:

1. Visual content of the advertisement must depict only the product being advertised and not the prohibited or restricted product in any form or manner:


2. The advertisement must not make any direct or indirect reference to the prohibited or restricted products


3. The advertisement must not create any nuances or phrases promoting prohibited products


4. The advertisement must not use particular colours and layout or presentations associated with prohibited or restricted products


5. The advertisement must not use situations typical for promotion of prohibited or restricted products when advertising the other products.

The cable television networks rules, 1994 has also imposed similar restrictions to curb surrogate advertising.

4.7 advertorials and disguised ads

The norms for journalist conduct issued by the press council of india, cable television network rules, 1994 and advertising code of doordarshan requires that advertisements must be clearly distinguishable from news content carried in the newspaper.

4.8 false advertising

False advertisements are restricted under the various legislations including the consumer protection act, 1986; cable television network rules, 1994; norms for journalist conduct issued by the press council of india act and ASCI code.

4.9 "free" gifts/samples

The consumer protection act 1986, section 2 (3) (a) states that (i) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole, or (ii) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest, is an unfair trade practice.

The norms for journalist conduct issued by the press council of india has stated that gift including those given by the advertisement agencies for publication of material relating to their clients or otherwise should not be accepted by the journalist.

4.10 free speech (specific limitations, e.G. Personal slurs, defamation, political statements)

Article 19(1)(a) of the constitution of india protects the right to freedom of speech and expression, which is also extended to advertisements. However, like any other right, this freedom is also subject to reasonable restrictions imposed by article 19(2) of the constitution of india.

Furthermore, the ASCI code states that no advertisement shall be permitted which:

• Derides any race, caste, color, creed, or nationality


• Tends to incite people to crime or to promote disorder and violence or intolerance


• Presents criminality as desirable or directly or indirectly encourages people, particularly minors, to emulate it or conveys the modus operandi of any crime


• Adversely affects friendly relations with a foreign state

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

So, let's see, what we have: millions of indians gamble online ever year, but is it legal? Here we talk about the laws that address internet gaming in india. At internet casino india law