Gambling or betting is considered as gaming, partaking, or wagering in a lottery. Sports betting is very popular and so does playing poker and casino gambling. However, electronic wagering and web gaming laws in India are so far creating history. There are no dedicated laws for online casino, poker, electronic wagering, etc in India. Hence, India has impediments and contradictions that have been constrained by laws of different states and other central laws.
The Government of India has explained about the Foreign Direct Investment (FDI) in its E-commerce sector. FDI is restricted to lottery business including private or government lottery, online lotteries, etc.
Operating Gambling Sites
Operating gambling sites is same as operating gambling houses in India. In Maharashtra, the penalties include one-month imprisonment for the first offense, three months’ imprisonment for the second offense and for all succeeding offenses, six months in prison is the minimum punishment. However, in other states, this law is either not clear or does not function.
Sikkim State Government has legalized the country’s first license to online gambling operators and it currently hosts two land-based casinos.
Online Gambling in India
The Public Gaming Act of 1867 has no reference to online gambling. Well, there is no surprise given that the internet was way too far from being invented when the law was introduced.
However, the Information Technology Act of 2000 could be considered to relate to electronic wagering and web gaming. This makes provisions for numerous online betting-related offenses. But there is no particular mention of the illegality of online gambling. Nevertheless, it does give the Government of India the power to block foreign websites.
At the state level, Maharashtra and Sikkim are two states which have issued legislation particular to online gambling. In Maharashtra, online gambling is completely prohibited whereas, in Sikkim, the state government is now issuing licenses to operators.
The Gambling Legislation Restricts the Demonstration of –
- Possessing, continuing, or administering a gaming house or even a website
- Offering, distributing, printing, dispersing, with the expectation of encouraging or supporting betting
Enactments usually vest with –
- The owner of the gambling website or house
- The individual having instruments or records of betting
How the rules and laws affect the betters?
All things considered, the legal situation concerning the use of online casino and gambling sites in India is distinctly blurred. Most of the betting websites welcome Indian betters, but due to the fact that these sites are operated overseas, they aren’t inevitably administered by Indian rules and regulations. It could mean that using betting and online casino websites from within India is authorized.
With that being said, and with the exception of Maharashtra, there are no laws passed by the Indian Government that clearly states that it is against the law for an Indian citizen to gamble online. There are no incidents or mentions of any Indian being charged or prosecuted for the offense of using an electronic gambling platform.
However, we do have a word of warning. The Indian Government introduced the Foreign Exchange Management Act (FEMA) 1999 to govern foreign exchange. Technically, depositing currency other rupees to a gambling site could be considered as foreign exchange.