Online betting has grown tremendously in popularity in India in recent years. However, the legal status of online betting in the country has remained ambiguous. While some forms of betting are considered legal, others operate in a grey area without clear regulations. This article aims to explore the current legality of various online betting id in India and how the laws are evolving.
Types of Online Betting
Before understanding the legal status, it is important to distinguish between the different types of online betting:
Skill-based betting
Some forms of online betting involve substantial elements of skill and strategy. Games like poker, fantasy sports and eSports betting require analytical thinking and decision making from players. As these involve an element of skill predominating over chance, they are considered legal in some countries.
Chance-based betting
Pure games of chance like roulette, slots and lotteries rely entirely on the roll of the dice or random number generation. There is very little or no skill involved for players. Most legal jurisdictions regulate or prohibit chance-based betting.
Live betting
This allows betting on the outcome of live sports events as they unfold in real-time. Players can bet on things like who will score the next goal or which team will be leading at half time. This has grown rapidly with the rise of mobile betting apps.
Casino games
Online casinos allow playing classic casino games like blackjack, baccarat and slots via websites or apps. While land-based casinos are legal in some parts of India, the legality of their online counterparts is unclear.
Current Status of Online Betting in India
The Public Gambling Act of 1867 is the primary law governing online id betting in India. It prohibits common gaming houses but remains silent on online betting.
The Supreme Court has ruled that games of skill can be considered legal if the element of skill predominates over chance. However, it is yet to clearly define what constitutes a game of skill.
As a result, the legal status of various online betting activities in India remains ambiguous:
- Skill-based betting: Poker, fantasy sports and eSports are considered legal by some courts since they involve substantial elements of skill. However, the law is still evolving.
- Chance-based betting: Activities purely based on chance like roulette, slots etc. are likely illegal as per the Public Gambling Act. But many continue to operate in a grey area.
- Live betting: The legality of live betting on sports is unclear since it blurs the line between skill and chance. Many apps offer such betting without facing legal issues so far.
- Online casinos: Virtual casinos allowing games like blackjack and slots are considered illegal. But some continue operating offshore, targeting Indian players.
- Lotteries: State-run lotteries are legal but online private lotteries are prohibited. However, many lottery apps/sites still target Indian users.
So in summary, while some forms of online betting are operating, the laws have not clearly classified and regulated different types of online betting activities in India. This has led to an ambiguous legal environment.
Evolution of Regulations
With the growth of internet and mobile betting, regulators and courts are working to evolve clear guidelines:
- The Centre issued draft guidelines in 2017 to regulate online skill games. But they are yet to be notified as law.
- In 2018, the Tamil Nadu government passed an ordinance banning online rummy and poker with money. But the Madras High Court struck it down, upholding them as games of skill.
- The Karnataka Police recently issued notices to online rummy sites, calling the activity illegal gambling. But the legality is still being debated in courts.
- In 2020, the Andhra Pradesh police arrested founders of two online rummy companies, considering it illegal gambling. But courts granted them bail.
- The Centre is working on a new gambling law to replace the 1867 Act and clearly define the legality of various betting formats. But a draft is yet to be made public.
- States like Meghalaya, Sikkim and Goa have passed laws legalizing and regulating online betting within their borders. But their jurisdiction is limited to those states.
So regulators and courts are still grappling with how to classify different types of online betting and bring much-needed clarity through new laws or updated interpretations of the 1867 Act. This process will take more time.
Future Outlook
With the rising popularity of online betting among Indians, experts believe that a complete ban on such activities may not be a practical or effective approach. This is because prohibiting everything could drive more betting underground and out of the reach of any regulations. A better solution proposed by experts is to take a balanced approach of regulated legalization. Certain formats of online betting that involve an element of skill like poker, rummy and fantasy sports can be clearly defined as such in new laws. This will provide clarity on their legal status.
At the same time, games purely based on chance can also be legalized but only through licensed operators. Strict regulations can be put in place for such operators regarding age verification of players, responsible gaming practices, prevention of gambling addiction and so on. By licensing online betting platforms, the government can generate tax revenues from this industry. Currently many illegal offshore betting sites target Indians without any rules. But legalizing the activity with proper oversight can help curb such unregulated gambling.
States can also be empowered to introduce regulations for online betting within their own borders. This has already been done successfully in some states like Meghalaya and Goa. However, they will have to follow central level guidelines on the matter. Along with regulated legalization, concerns around gambling addiction will need to be addressed through awareness campaigns and counseling programs. Taking all factors into consideration, a balanced approach seems most suitable for India going forward.
Conclusion
While online exchange betting id has grown rapidly in India, the legal framework has been slow to evolve clear guidelines on their legality. Different formats currently operate in a grey area with ambiguous status. Regulators and courts are working to classify activities as games of skill or chance and develop new laws or interpretations. A balanced approach legalizing some activities after introducing strict regulations seems the likely future outlook. But it will still require more debate and policy work to arrive at a consensus.