October 7, 2022

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Legal Position of Online Betting in India – A Complete Guide

Legal Position of Online Betting in India - A Complete Guide
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In India, gambling has existed since ancient times. Online gaming in India has become highly popular due to technological advancements and the evolution of the internet and telecoms. In India, online gambling and lotteries have replaced the offline industry of gambling and betting, which is physically regulated.

But most people wonder, Is Online gambling or betting legal in India? The answer is Yes. Federal laws do not prohibit online betting, and many legal online betting sites in India, like Yolo247. But the rules vary from state to state. Start scrolling down to know all about online gambling laws, rules, regulations, and the different jurisdictions that apply, depending on the state in India.

Are Betting Sites in India Legal?

There is a lot of controversy in India regarding sports betting and other types of gambling. Some people believe it’s legal, while others think it’s illegal everywhere. Indian betting laws do not mention online betting, which is why it is not formally prohibited. However, the Indian government has left it up to individual states to decide whether to legalize or outlaw online betting.

Indian government imposes some measures on the Public Gambling Act of 1867. The first ever law prohibiting gambling in India was the Public Gambling Act of 1867. The casino or any form of online gambling is not mentioned. As a result of this loophole, online gambling is not illegal, which is a ray of hope for millions of aspiring gamblers.

Since online gambling is not prohibited, it’s safe to say that online casinos are legal in India. Internet usage has increased, but the governing bodies chose not to amend the law. The Individual States were, however, left to decide this issue on their own.

 

Indian Laws for Betting & Gambling Games

To understand what you can do based on your state of residence, you should review all the legal details of betting in your state.

  1. Under the Public Gambling Act of 1976, online gambling and land-based casinos are legal in Goa, Sikkim, Nagaland, and Daman.
  2. In Maharashtra, all kinds of gambling activities, including online gambling, are illegal under the Bombay Prevention of Gambling Act of 1887
  3. But, in Maharashtra, games of skill are allowed, but games of luck are not. It is the same in Karnataka and many other states as well.
  4. Sikkim and Nagaland have legalized e-gaming (games of chance)
  5. As per the Telangana State Gaming Act of 1974, the game of skill is illegal in Telangana and Arunachal Pradesh.
  6. In Tamil Nadu, online betting is neither legal nor illegal.

In all states except Maharashtra, online gambling is not unlawful. In addition, gambling operators are not allowed to operate gambling facilities in any Indian state or territory. Since most online bookmakers use outside India, this law can be disregarded.

Other Laws – However, other laws affect the gambling industry, such as 

  • Cyber laws
  • Tax laws
  • Anti-money laundering laws
  • Exchange control regulations, etc.
  • Intermediaries are obligated under the Information Technology Act, 2000 to observe due diligence.
  • Based on Circular No. 15 of 2015, the Central Board of Direct Taxes clarifies that e-wallets or virtual card accounts maintained with offshore online gaming and poker websites are equivalent to bank accounts. They should be valued and declared as bank accounts.
  • India’s Foreign Direct Investment (FDI) Policy prohibits FDI in lotteries and gambling.

Gaming online continues to be a grey area. Gambling in India has exciting variations. For example, Horse racing is legal because it is a skill game, but betting on cricket isn’t. Lottery betting, which is pure gambling, is regulated. While online, Texas Hold ’em Poker, which many argue is a game of skill, may or may not be legal in all states.

 

Finding the Best Betting Sites in India

There are a lot of betting opportunities available on the internet now. Today, players have a wide variety of bookmakers to choose from when betting online. Websites like Yolo247 have the best betting features. Choosing a betting site with best features for yourself will not be the same for everyone, which is perfectly fine.

It is essential to consider a few things before choosing a betting site to determine which bookmaker is best for your needs.

1)- Payment Security and Trust  

Before depositing your funds into a betting site, you should check for their legal license. Choose a betting site with secure domains and encryption.

2)- Choosing your Bets 

Choose a site that provides multiple betting options for each match. Moreover, live betting is beneficial if you want to see how the dynamic of the game changes as the match unfolds.

3)- Promotions and Bonuses 

  • Consider a bookmaker’s promotions and offers before making a decision. Check out the site’s latest offers and bonuses.
  • To avoid problems with future monetary transactions, carefully read the terms and conditions of the ranking bonuses.

4)- Options for Payment

Most credible betting sites support a wide range of banking options, making depositing easier for players. Online withdrawals have often been a problem for many players, and here is where the credibility of the betting site is tested. Use only your name, address, and credit card while uploading the documents.

5)- An In-Depth Study

The reviews on Indian betting sites will tell you whether a bookmaker follows the rules and pays on time. The more you know, the better you can decide.

6)- Support Services 

It is essential to consider how fast and accurate an online betting company responds to its players and customers. Customers can reach out for assistance through a live chat feature on some betting sites.

Betting companies should also consider how they respond to public complaints. Check for the conditions and availability of services before depositing any money in the online betting or gambling sites.

 

Skill Based & Luck Based Games

Many states allow skill-based games but not luck-based games.

How do skill games differ from luck games?

  • Skill Based Game

A skill-based game is one where you, the player, can gain more knowledge of the game and increase your chances of success.

This logic suggests that online betting is a skill game. Whenever you bet online, the more you know about a particular sport, team, or tournament, the greater your chances of winning.

Since online betting is a game of skill, it is legal in many Indian states.

  • Luck Based Game

On the other hand, a game of luck is a game in which you, as the player, do not influence the outcome. Roulette is an example of a game of luck.

You will never increase your chances of success in roulette no matter how much you study the game. In roulette, the little ball can land anywhere once cast, and both players have the same odds.

 

Gambling Laws According to States

The Indian government has not permitted any national gambling laws, leaving this decision to each state. Even though this is considered a good thing, it also has drawbacks.

In states where gambling is legalized, many people are concerned that money laundering could occur through casinos and sports betting. It may be true in some situations, but if you have solid regulatory institutions, you can easily keep things under control.

In states where gambling is made illegal, there are more religious and traditional groups of people who consider gambling evil. This may be true because those people who gamble have no control over their money and end up losing their life savings.

Hence, you should always play responsibly and never bet more money than you can afford to lose.

 

Indian Penalties for Illegal Online Gambling

  • In 2018, Delhi police officials brought down an online gambling racket and arrested 12 customers for violating state gambling laws.
  • Due to the increased use of technology and internet access, online gambling has become very easy to operate.
  • Since most legislation does not mention online gambling, there is no specific punishment, just general provisions from the above legislation.

Conclusion:

Indians gamble in great numbers, so the online gaming industry continues to grow. The current laws are not keeping up with this change. There is increasing regulation of online gambling and betting sectors worldwide. Establishing a regulatory framework for online gaming and providing legislative clarity not only would be able to curb underground activity but also generate new tax revenue. Online betting in India is still legal and safe even though the current laws are vague and unclear. So, you can now start betting online with online betting sites in India, like Yolo247.