In recent years, the digital landscape in India has experienced a significant upswing in the popularity of online gambling, as evidenced by a growing number of users seeking the thrill of chance from the comfort of their homes. However, this newfound interest has also presented its challenges, particularly in terms of complying with regulatory requirements.
It has become evident that the Indian government acknowledges the necessity of addressing the challenges and opportunities stemming from this rapidly growing sector. With their objective being to establish a responsible gaming environment while also capitalizing on the economic potential inherent in a regulated online gambling industry.
Yet the most recently implemented 28% GST is not enough when it comes to a proper regulatory framework. With that said, responsible gamblers, irrespective of the jurisdiction from which they’re hailing, should make sure that the providers they register with are compliant and fully-licensed to operate. Fortunately, there are many sites listing such operators, and you can visit FreeSpinsTracker to learn more and have a better understanding of what to look out for.
The regulatory framework for online gambling in India is complex, to say the least. However, it is essential for players and operators to comprehend the legal nuances to ensure compliance and avoid legal repercussions. That’s why we’re breaking down the current landscape, so you can gain a better understanding of how India plans to regulate real-money gambling in 2024.
Gambling Landscape Overview
In India, gambling is explicitly recognized as a legal activity in its Constitution, granting individual states the authority to establish laws pertaining to gambling and betting within their respective jurisdictions. The primary regulatory framework overseeing gambling and betting is the Public Gambling Act (PGA), which has been adopted by various states, including Uttar Pradesh, Madhya Pradesh, and Punjab & Haryana. However, the PGA does not furnish a specific definition for the term “gambling”; instead, it primarily focuses on prescribing punishments for organizing public gambling rather than elucidating which games fall under this category.
Over the years, some states have introduced much-needed amendments to the colonial-era statute, while others have created their own distinct legislative frameworks to regulate gaming and gambling activities within their territories, referred to as State Gaming Laws. While these state laws generally draw inspiration from the PGA, they incorporate necessary modifications to meet their specific requirements. Nevertheless, both the PGA and the majority of State Gaming Laws, conceived before the internet era, primarily prohibit gambling activities in physical premises known as “gaming houses” or “common gaming houses.”
Current Online Gambling Laws
Notably, the states of Sikkim and Nagaland have embraced contemporary State Gaming Laws, implementing a licensing framework specifically tailored for online games. In Sikkim, this framework covers online games and sports games, with the stipulation that they can only be offered via the intranet and exclusively to individuals outside the state. Meanwhile, Nagaland has established a licensing regime exclusively for online skill games, accompanied by a prohibition on gambling activities. In contrast, Telangana and Andhra Pradesh outright forbid all real-money online gaming activities, including skill gaming. Additionally, Tamil Nadu currently restricts real-money online rummy and poker.
Many state laws provide specific exemptions for games of “mere skill,” with judicial interpretation characterizing them as games predominantly dependent on skill. However, rather than establishing an objective criterion to differentiate skill-based games from those of chance, Indian courts base their determinations on the specifics of each case. Nagaland has a licensing system for skill games, and the Nagaland Act includes a catalog of recognized games of skill. Sikkim, on the other hand, implements a licensing regime covering all online games, whether they involve chance, skill, or a combination of both.
Recent Changes
In 2022, the Indian government announced its intention to formulate a new gambling law, aiming to replace the existing Public Gambling Act (PGA). Subsequently, in January 2023, the Government of India introduced fresh regulations designed to govern online gambling, with the primary objective of establishing “self-regulatory” bodies to oversee the sector.
To implement these regulations, the government plans to institute three self-regulatory organizations (SROs), tasked with approving games that adhere to the country’s operational guidelines. Comprising industry representatives, gamers, and other stakeholders, the SROs will play a pivotal role in regulating the online gaming landscape in India, with a overarching goal of promoting responsible and safe practices. Under the recently introduced regulations, it is mandated that the self-regulatory organizations (SROs) include an educator, a mental health specialist, and an individual well-versed in safeguarding children’s rights.
