prohibit gambling (except for games which are exempted on the basis of being games of skill) in common gaming houses, there are certain State legislations that legalise some form of gambling and issue specific licences to gambling establishments. Most of the State legislations, as well as the PG Act, were enacted much before the advent of online gaming, and hence mostly refer to gambling activities taking place in physical premises. Tis makes the applicability of such legislations on online gaming questionable.
However, certain States have enacted laws specifically for online gambling and sports betting. Such legislations also regulate games involving real money and provide for licensing requirements.
Most States adopt a similar approach in regulating gambling and betting, where games of chance, that is, games which do not at least have a predominant element of skill are prohibited. However, two States prohibit all forms of gambling, even if it is a game which involves a predominant element of skill, namely, Odisha and Assam. Unlike most other State legislations, the Assam Game and Betting Act, 1970 (“Assam Act”) and the Odisha Prevention of Gaming Act, 1955 (“Odisha Act”), do not create any exception for games of skills. Te Assam Act does not permit staking of money or money’s
worth on the happening or determination of an unascertained event, thing or contingency for or in relation to any game or sport etc. Similarly, the Odisha Act does not permit any play or game for money or other stake.
Te State of Telangana takes a similar approach. Te Telangana government issued the Telangana State Gaming (Amendment) Act, 2017 (“Amendment Act”) to amend the provisions of the Telangana Gaming Act, 1974 (“Telangana Act”). As per the Amendment Act, the section that earlier provided the exception to games of skills in the Telangana Act has now been read down to be applicable to only such games which are only based on skills and do not have any element of chance. Additionally, the Amendment Act added the words ‘online gaming with stakes’ to the definition of gaming under the Telangana Act and amended the explanation of the definition to State that any act of risking money or otherwise on the result of an unknown event, including on a game predominantly based on skill, falls within the definition of betting and wagering.
Conversely, certain States legalise some forms of gambling which do not involve an element of skill and issue specific licences to the gambling establishments. Te West Bengal Gambling and Prize Competition Act, 1957 (“West Bengal Act”) specifically excludes ‘games of cards like Bridge,
Poker, Rummy or Nap’ from the definition of “gaming and gambling” and allows the organising of such games on procuring a permit from the Commissioner of Police in Calcutta or the District Magistrate or the Sub-divisional magistrate when such game is played in any place where the public may have access.
Similarly, the Goa, Daman & Diu Public Gambling Act, 1976 (“Goa Act”) allows for certain prescribed table and board games on grant of licence, although the same are only permitted in offshore casinos. Tis being said, neither of these legislations envisage any licence for online gaming.
Two States which provide licences specifically for online gaming, are Sikkim and Nagaland. As per the Sikkim On-line Gaming (Regulation) Rules, 2009 (“Sikkim Rules”), a list of prescribed games such as Roulette, Black Jack, Poker, Poker Dice, including sports betting, may be offered for online play after procuring a licence for the same from the Sikkim government. Similarly, the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016 (“Nagaland Act”) contemplates issuance of online gaming licences, but only for games of skill. Te Nagaland Act lists down certain games of skill in its First Schedule, which may be updated by the government or by a representation of any party.
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