An Insight into the Laws and Regulations of Online Casinos in India

 

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The relationship between India and online gambling is a bit of a legal straitjacket. Although the iGaming market is booming, it’s still a confusing country when it comes to online casino regulations.

With that in mind, let's take a closer look at where we are now and what that means for players and operators.

State Vs Central Laws

The main issue of online casino laws in India is that gambling laws are a primarily state matter. This means that individual states can regulate gambling in their state. Some states are strict about gambling, and others are looser or have no regulations about gambling online.

States like Goa and Sikkim, for instance, have legalized gambling, including in casinos. Whether it be placing bets on the fastest Indian bowlers or spinning slots, Indians in these regions have almost complete freedom. Sikkim even grants internet gambling licenses, though only to those who are state residents.

Meanwhile, other states have banned all online gambling (including skill games) altogether, although there are workarounds.

The government at the national level, however, monitors finance and enacts anti-money laundering measures. That is where things get sticky for online casino operators, who must obey central and state laws.

The Public Gambling Act of 1867

The oldest gambling statute in India is the Public Gambling Act (1867). It’s a law made long before the internet was a thing, so it isn’t specifically related to online casinos or online gambling. But the law outlaws running or even visiting a brick-and-mortar casino.

And since online gambling is not mentioned in the law, some operators say that internet casinos are a bit of a gray area. This opacity has led to criticism that the law must be amended to keep up with the times.

Some lawyers believe that internet casinos should be legalized, not banned. They suggest regulation would protect players, cut out money laundering and raise tax revenue for the state. But there’s been little action on this front up to now.

Games of Cooperation vs Games of Fantasy

The primary difference between games of skill and games of chance is in Indian gambling law. Games of skill are considered legal in most states, while games of chance are typically banned.

That difference has left a question over some internet games. Fantasy sports sites, for instance, claim that because their games are skill-based, making them legal. The same can be said of poker, and rummy sites that argue that those games require significant skill to operate.

Online casinos, though, feature more luck-based games such as slots or roulette. Whether games are skill-based or chance-based is a contentious question, and each state takes a different view.

However, even in areas where gambling is outright banned, there are always workarounds.

For example, let’s take a look at the best Indian casinos selected by AskGamblers, an iGaming review platform giving in-depth reviews for casinos and sports books. Here, we will be able to find ratings based on factors like game selection, bonuses, and more. Many of these sites offer virtual currencies like crypto.

International Operators and Offshore Casinos

Many of the online casinos that are open to Indians are offshore. Such foreign operators generally operate from Malta, Gibraltar or Curacao. They don’t live in India so they claim Indian law doesn’t apply to them.

These websites are not hard to come by for Indian players, and most offshore casinos also accept Indian rupees and have customer service in the local languages. But you never know what players may face with unregulated sites. If it doesn’t work out, you may encounter late payments or unfair practices. In this instance you haven’t got much of a legal recourse.

The government has, at times, taken action to censor offshore gambling sites, but not always with consistency. Zahlungs is one area where the state has more say. RBI and banks are vigilant of fraudulent transactions on gambling websites, so other forms of payment, such as cryptocurrencies and e-wallets were introduced.

Recent Advances and Demands for Policy

Over the last couple of years, pressure for Indian online gambling regulation has risen. Their cries are that regulation would be beneficial for players, for revenue, and for curtailing illicit activity.

A controlled internet gambling market, according to several reports, could be an enormous source of tax revenue for the state. With the right system in place, India could follow the UK and other nations that have a regulated online gambling industry, which is player-friendly and growth-oriented.

They’re also realizing that there is a lack of effectiveness in essentially removing online gambling from the market. Rather, a licensing and regulated environment could facilitate operators meeting certain requirements (responsible gambling laws, anti-money laundering, etc).

The Role of Responsible Gaming

A rising star in the online casino industry discussion is responsible gamblingMost big-name casinos have already introduced responsible gaming features like self-exclusion options, deposit limits and reality checks. India could regulate the industry and prescribe similar measures to guard against player injury.

Responsible gaming initiatives can also answer some of the questions put forward by anti-online-gambling advocates. Through the development of safer gambling, gambling will cause less damage and build a more resilient future.

What Does the Future Hold?

India hasn’t gotten anywhere on the legalization of online casinos. Regulating is still up for discussion and argument, and things are unlikely to change overnight. The system is still a bit murky, with different laws in different states and no universal blueprint.

There is a need to play around with this gray space for now. To choose safe platforms, know what you’re running into, and stay current with what’s going on with the law.

Conclusion

With all the digital innovations, it is hoped that India will eventually be a more liberalized place when it comes to online gambling. The industry could be unleashed by regulation that keeps players safe and governs the money it generates.

But if they don’t, the iGaming industry will still live in a world as tantalizing as it is speculative. Only time will tell, but it's looking increasingly likely that the former will become a reality.