Is Online Betting Legal in India? Legality of Making Bets Online

Legality of Online Betting in India: What You Need to Know? | The Enterprise World
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Is Online Betting Legal in India? 

The online betting market in India is expanding rapidly each year, attracting a growing number of bettors and an increasing number of platforms offering such services. However, the legal landscape of online betting in India remains unclear and complex. For this reason, it’s crucial for bettors to choose only Indian trusted betting sites that operate legally, ensuring access to all the features and services they need. It’s important to note that the legality of online betting platforms varies significantly from state to state, reflecting the broader ambiguity in India’s online betting regulations.

The Legal Framework for Betting in India

The legal framework for betting in India dates back to the Gaming Act of 1845 and the Betting Act of 1853, which regulated existing gambling activities in British India. After independence, the states were divided into those that left the existing order and those that created their own legislation regarding betting.

However, the central law in the regulation of betting in India was the Public Gambling Act of 1867, which applied to all states in India. According to this Act, betting was divided into two categories: games of skills and games of chance. The second category has been declared illegal throughout India, while the first is legal. However, the list of games of skills is still being corrected, due to the lack of a clear distinction and definition of such a category.

Such ambiguities in the law have prompted punters to ask questions such as whether is 1win legit and whether is it legal to bet on online betting platforms in India at all. At the moment, due to the absence of a law on the illegality of such activities, licensed platforms such as 1win are legal. However, even in this case, the situation may vary from state to state.

State-Level Regulations and Variations

Legality of Online Betting in India: What You Need to Know? | The Enterprise World
Source – eastmojo.com

Due to the lack of clear regulation of online betting across India, some states have introduced their own laws regulating this activity. The states of Goa and Sikkim have the most progressive gambling legislation. Goa is characterized by full legality for both physical gambling houses and online betting. Sikkim, on the other hand, was the first state to regulate online gambling, passing the Sikkim Online Gambling Regulation Act in 2008, allowing licensed operators to offer various online games exclusively to players within the state.

In contrast, Maharashtra has a strict ban on online gambling, governed by the Bombay Betting Act of 1887, which prohibits all betting activities. The state government has confirmed that this law applies to online platforms as well, with significant fines for violators. Similarly, the states of Telangana and Andhra Pradesh have strict rules prohibiting online gambling, making it illegal and punishable by fines and imprisonment.

Other states such as Tamil Nadu and Karnataka have taken a more ambiguous approach. Tamil Nadu initially banned all forms of online gambling but faced legal challenges. The legal situation in the state of Karnataka has also changed and thanks to court decisions, skill-based games such as rummy and poker have become legal.

Online Sports Betting in India

Legality of Online Betting in India: What You Need to Know? | The Enterprise World
Source – economictimes.indiatimes.com

Online betting in India remains a complex issue due to current legal ambiguities. Under current legislation, there are no explicit bans on online sports betting due to outdated statutes that do not provide for the regulation of online betting. However, some sports, for example, horse racing have been judicially defined as games of skill, which has helped to lift some of the bans on both physical and online betting on this sport. However, according to law enforcement and government authorities in India, physical sports betting is largely considered a prohibited activity, regardless of its classification as a game of skill.

Based on the current legislation in states that do not have separate acts regulating sports betting separately, all types of online betting are available to bettors. Thus, for the state of Sikkim, all types of betting are available on legal online platforms, while for Maharashtra all types of betting are prohibited. 

Online Casino Gambling in India

Legality of Online Betting in India: What You Need to Know? | The Enterprise World
Source – thehansindia.com

The legal situation regarding the regulation of online gambling in India is almost the same as for sports betting. The Public Gambling Act of 1867 issued a ban only on physical gambling houses where games are categorized, which determines their legality. However, the legality of online gambling is also not defined under the central act, which implies that there is no general prohibition. Thus, online gambling is banned only in those states of India where it is stipulated in the regulatory laws of the state itself.

Key Legal Precedents and Court Rulings

Online betting in India is being shaped by legal precedents and court decisions that are changing the legislation. The current situation gives states the power to regulate gambling within their jurisdiction, but there are initiatives to establish uniform legislation to regulate such activities. The Legislative Commission in India has previously recommended legalizing gambling to combat illegal operations and increase tax revenues. However, the creation of unified legislation to control online betting is a rather difficult step due to the need for significant changes to the current legislation, which will require a considerable amount of time.

At the moment, a significant problem with the legislation is the difference in the classification of games of skill and games of chance. On this issue, Indian courts are constantly making decisions on adding new games to the category of games of skills, which, according to the legislation, indicates their legality. For example, horse racing and rummy have been added to this category.

Challenges in Regulating Online Betting in India

Regulating online betting in India is challenging due to fragmented laws and socioeconomic complexities. A major issue is the outdated Public Gambling Act of 1867, which fails to address modern technology and online platforms. This legal gap forces states to create their own laws, leading to inconsistencies and confusion, where practices legal in one state may be illegal in another.

Another challenge is distinguishing between games of skill and chance. The absence of clear definitions results in conflicting court rulings and inconsistent enforcement. Additionally, unregulated offshore betting platforms operate outside Indian jurisdiction, making it difficult for authorities to track transactions or hold operators accountable.

Socioeconomic factors add further complexity. While legalizing online betting could boost tax revenue, it raises concerns about addiction, financial exploitation, and its impact on vulnerable communities. Policymakers must balance these risks with economic benefits. Without a unified, modern regulatory framework, these issues will continue to hinder effective governance of online betting in India.

Conclusion

The growth of the online betting market in India is undeniable, which was spurred on by the pandemic. Furthermore, the market is not declining in any way — instead it is growing at a rapid pace, which according to experts is equivalent to a 27% increase annually. In this situation, there is a critical need for unified legislation for online betting in India. The absence of any regulation of online betting in the country’s main governing act raises a lot of questions and leads to constant disputes and litigation.

This situation promotes separate regulation by the states, which further varies the permissible norms across the country. Thus, at the moment, online betting is still an up-in-the-air issue which, in the absence of bans, is legal.

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