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Is Online Gaming Legal in India?

Is Online Gaming Legal in India? | Game of Chance

In January post publication of its report entitled “Legal Framework: Gambling and Sports Betting” Law Commission of India inclusive of Cricket, the Commission released a press note stressing that its suggestion was to banning on betting and gambling activities in India. Now if Central Government or any state specific did consider regulating it, the Report set out some positive and logical measures to combat certain industry issues.

On the basis of the report published by Law commission, the sports (Online Gaming and Prevention of Fraud) Bill, 2018 was introduced as a private member bill in the LokSabha, on December, 2018.The Statement of Objects and Reasons accompanying the Sports Bill has underscored that it has been introduced with the dual aims of preserving integrity in sports and introducing a regulatory regime for online sports betting.

However, the Sports Bill lapsed with the dissolution of Parliament prior to general elections, and has not been reintroduced.

The All India Gaming Federation (AIGF), a self-regulatory body for online games of skill 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 Information Technology Act, 2000 (“IT Act”)  and the Foreign Exchange Management Act, 1999 (“FEMA“)

Game of Chance versus Game of skill in India?

The question of whether sports betting is a game of skill is still pending before the Hon’ble Supreme Court in the case of Geeta Rani v Union of India &Ors. 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 that recognize an exemption for games of skill.

Insofar 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.

Furthermore, the Telangana Gaming Act, 1974 (“Telangana Act”) was recently amended to delete the exception for games of skill. The Telangana Gaming (Amendment) Act, 2017 (“Amendment Act”) is currently being challenged before the High Court of Hyderabad.

In the case of Ramachandran K v The Circle Inspector of Police, the Kerala High Court has held that playing rummy for stakes would amount to the offence of gambling under the Kerala Gaming Act, 1960 (“Kerala Act”). 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 the order of the Kerala High Court, but was dismissed. The court held that whether rummy 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 stakes were involved.

As stated, a review petition was filed against the order of the High Court of Kerala in the matter of Play Games 24X7 Pvt. Ltd v Ramachandran K &Anr. However, the court dismissed the petition, and held that whether playing rummy for stakes (including online rummy) would amount to a violation of the Kerala Act would have to be assessed on a case-by-case basis.

The dismissal of the review petition has called into question whether any games of skill can be played for stakes.

Certain self- regulatory gaming bodies in India have adopted skill charters and guidelines to ensure player protection, transparency measures, etc.

Conclusion:

Indian legislative have been in constant dilemma with regard to gaming laws regulation. Due to the non-uniform civil code for gaming laws India’s view remains divergent. Further, with multiple litigations and no end result gaming in India remains a question mark “?”. Hence,  there are certain grey areas where the gaming community can exploit the loopholes.

 

Contact Legallands LLP for understanding more about the laws and legalities involved in online gaming in India. We have expert lawyers who will guide you through the steps of incorporation and strategizing, funding, and understanding the defaults in the Games and Gambling Laws in India. Please reach us at [email protected] or call us today at +91 11 4604 5777/8777.

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