Online gambling in India, encompassing activities such as online lotteries, casinos, and sports betting, has garnered significant interest within the gambling community. As more Indians express a willingness to explore various forms of online betting, the participant count is witnessing a discernible upward trajectory.
However, beneath the surface of this digital gaming surge lies a legal landscape fraught with implications. From being completely banned by the PGA 1867 Act to being managed by self-regulatory bodies in 2023, online gambling has witnessed several changes.
In recent events, online punters even have to pay 30% taxes on their winnings. Some Indian states welcomed this move, while many have shown disregard.
With each Indian state having a different stance, Indian punters are confused about the legal status of online gambling. To end this dilemma, we bought some insights to help Indian punters traverse the dynamic world of online gambling with confidence and awareness.
Changes That Indian Gambling Regulation Has Gone Through All These Years
The first law that came into force regarding online gambling was The Public Gambling Act or PGA 1867. According to this act, gambling is banned in India, with few exceptions.
In 2022, the government of India announced that the PGA 1867 Act needed to go, and a new act should be in place. Then came a proposal to regulate online gambling in India. In January 2023, the Government of India suggested creating “self-regulatory” bodies for this sector.
Under the self-regulatory mechanism, online casinos must follow the standard Code of Ethics and IT Rules.
Operators must obtain a license to operate legally in India to offer a game of chance, real-money lotteries, bettings, and horse racing. Skill games, fantasy betting, and poker don’t require a license.
According to recent developments, mandatory KYC or Know Your Customers checks are required to play safe online casino games. KYC verification has become a norm for trusted online casinos.
In recent events, online gamblers must also pay a 30% income tax on their winning amount. From July 2023, the GST Council of India announced the imposition of a uniform tax of 28% on online gambling. These changes come into force from October 01, 2023 onwards.
The online casino operations must be transparent. Disclosure of information like game providers, responsible gaming measures, privacy policy, Bonus terms, payment, and other details is mandatory.
You can check out the Bestindiancasinos.co.in site to learn about safe and secure online casinos in India. Here, you will find the details of dually-checked and closely analysed Indian online casinos that you can try without fear.
Who Regulates What in Indian Online Gambling Landscape
Online gambling is divided into two categories, game of skills and chance. Games of skills are legal in India, while games of chance are not. Each category of online gambling is regulated differently in Indian states.
Casino Games
Casino games like slots, Roulette, and Blackjack in land-based and online casino settings are regulated by State Laws in India. States like Sikkim and Nagaland have legalised casino games or games of chance.
The state of Sikkim allows online casinos to provide casino games like Blackjack and Roulette after obtaining a license according to the Sikkim Online Gaming (Regulation) Act, 2008 (“Sikkim Act”).
In the state of Meghalaya, Meghalaya Regulation of Gaming Act, 2021 (“Meghalaya Act”) grants licenses to offer online and land-based games. This body covers games of chances like Keno, Slots, Wheel of Fortune, Roulette, and many others within the state. The land-based casinos in Goa and the union territory of Daman and Diu are regulated by the Goa, Daman and Diu Public Gambling Act, 1976 (“Goa Act”).
The Home Department oversees governance in Goa, the Tourism Department manages affairs in Sikkim, and the state government is responsible for administration in Meghalaya.
Poker
Poker is often considered a game of skill, and the states of Sikkim, Nagaland and Meghalaya consider it legal. The state of Tamil Nadu bans real-money poker but allows skill variants of this famous game. Poker is not legalized in any other stage of India.
Bingo
Bingo falls under the lottery or game of chance category in India. It’s legalized in online and land-based casinos and falls under the lottery category. Indians can participate in Bingo lotteries in states like Sikkim, Goa, Maharashtra, and Arunachal Pradesh without fear, as it’s 100% legalized in these states.
Betting
Indians participate in diverse forms of betting, including cricket, horse racing, golf, football, and chess betting. In the states of Sikkim and Meghalaya, sports betting is allowed with the issuance of a license, but it is limited to online platforms exclusively.
Horse race betting is considered a game of skill in India. This is why many gambling laws exclude this from the list of prohibitions. There is no defined law or regulation to control online horse racing betting in India. No license is required for this.
Physical horse betting in states like Karnataka, Telangana, West Bengal, Maharashtra, Delhi and Tamil Nadu is fully regulated.
Final Say
While your online gambling journey in India can be smooth and diverse, it has certain restrictions and implications. The rules are strict and online gambling is not legalised in every part of India. However, seeing the popularity of this industry, the Indian government is bringing new changes and laws into force. We hope that Indian gamblers will feel more freedom in years to come.
