LEGALITIES OF ONLINE CASINO GAMES IN INDIA

Gaming is often considered as a fun time pass which even helps to build individual skills. With the nation becoming more and more tech savvy the online gaming platforms have emerged as a core for the players. It has also become the online earning source for many. However, not all that glitters is gold. Online gaming usually refers to gambling websites where players join the traditional games like cards and dice. Gambling is generally defined as participation in any activity involving chances and not skills with an intention to make monetary benefits through winning.

Since, there is no unified law in India for regulating gambling so the people can access online casinos that accept INR without the fear of prosecution. Therefore, to put a restriction on these transactions’ states have been provided with the power to make laws on betting and gambling under Schedule VII of the Constitution.

Game of Skill and Game of Chance

Game of skills are generally based on the physical or mental aptitude of a person whereas, game of chance is purely based on luck. Under Indian Law, game of skills is considered as legal while game of chance is considered as illegal. However, there is no definite criteria to distinguish between game of skill and game of chance. It purely depends on facts and circumstances of the case. Some of the aspects that can be considered while determining the game of skills and game of chance are the extent to which the player can make strategic decisions, the cognitive skills of the person, qualitative tests, etc.

Legal Aspects Involved in Online Casino

Casino games whether digital or land-based are regulated by the state laws in India. Schedule VII of the Indian Constitution gives power to the State under the State List to make laws on betting and gambling. Further, the Public Gambling Act of 1867 was formed to prohibit functioning of a public gambling house. Section 12 of the said act prohibits games of chances and not the games of skills but the uncertainty on both the categories still exists. However, this law is considered as outdated because ultimately the decision is with the States to form laws on the matter. In year 2022, the Indian government announced its plan on creating a new gaming bill to replace the Public Gambling Act of 1867.

Presently, the places that allow Casinos and legalise gambling in India are Goa, Daman and Sikkim. The Goa Act allows the offering of games of electronic amusement/ slot machines in five-star hotels in the territories of Goa, Daman and Diu under a licensing regime. The state of Sikkim enacted the Sikkim Online Gambling (Regulation) Act,2008, which was passed on 28th?June 2008 by the Sikkim Legislative Assembly with the object of controlling, regulating and imposing taxes on online gaming. Like Sikkim, Nagaland assembly has also implemented the Nagaland Online Games of Skill Act, 2016 for regulating and promoting the games of skills.

Whereas there are some states which proposed recent amendments in their respective state gaming laws by either diluting or removing the express exemption provided to skill games, and imposed a blanket prohibition on all games played for stakes, including skill games and online games. For instance, the State of Karnataka in October 2021 implemented the Amendment Act to, inter alia, prohibit all games including online games of skill if played for monetary or equivalent stakes. This forced the online skill gaming platforms to challenge the validity of the Amendment Act which was in contravention to their fundamental right as guaranteed under Article 19 (1) (g) of the Constitution of India. Therefore, the High Court struck down all the proposed amendments except the ones that enhanced the quantum of punishment, declaring them as ultra vires to the constitution.[1]

Conclusion

The legality of online casino games is less clear in India. While there is no specific law that makes them illegal, there is a chance that one could be prosecuted under the Public Gambling Act if they are caught gambling online. Casino products fall within the category of games of chance and therefore would be hit by the prohibition under most state laws. The only exceptions that exist to the said general rule are covered under the laws of Goa, Sikkim and Meghalaya. Therefore, anyone who wants to start online casino needs to be very careful regarding the terms and conditions and of course the prescribed legal provisions.

[1] All India Gaming Federation v. State of Karnataka and Anr., Writ Petition (Civil) No. 18703 of 2021.

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