Online Gambling

Internet Casinos Inc. (ICI), the world’s first online casino, started operating from August 18, 1995, together with 18 different games. Since then more than 1,400 sites, largely domiciled in little Caribbean islands, have given rise to a market that grosses more than $3 billion a year. In fact no business on the Internet brings more revenue than online gaming. Out of those estimated 14.5 million online gamblers, almost 30 percent are out of Asia.

A bet can be put in moments. Anyone with a credit card may set up an online money accounts with a gambling site, leaving them free to put bets on sporting events such as Wimbledon, cricket, horse racing and Formula One, or combine with a virtual casino to play with slot machines, roulette, blackjack, blackjack etc.. Companies like Flutter and Betmart accept bets on anything from who’s going to win the Nobel Prize to if Madonna is obtaining a divorce or not. Bets can vary from a nickel to thousands of dollars and according to if you win or lose the amount is automatically adjusted to your accounts. The final balance can then be mailed to you or abandoned for future bets.

The law concerning online gambling in India has to be known within the country’s socio-cultural context. At the start, gaming, though not entirely illegal in India, does not get state encouragement by policy makers. The Indian organized gambling market is estimated to be worth roughly US$8 billion. While strict laws have assessed the proliferation of casinos and high street gambling centres as in a number of other countries, barring the state of Goa, the lottery industry remains the very post popular type of gambling.

Though gambling is not illegal, it’s a highly regulated and regulated action. Modern India is a quasi-federal Constitutional democracy as well as the powers to legislate are distributed at the national in addition to the state levels. Gambling includes List II of the Constitution of India, this suggests that the state governments have the ability to enact legislation so as to regulate gaming in the respective countries. Thus, there is no single law regulating gambling in the entire country. Various states have different laws governing gambling along with the laws that have an application throughout the country. While some nations have prohibited lotteries, other states allow state authorities lotteries marketed and distributed in other lottery playing and promoting states through private entities.

Regulation of gaming

The courts have described betting as’the payment of a price for a chance to win a prize’. The dominant element of skill or chance will determine the character of the game. A game could possibly be deemed to be gambling if the element of luck or chance predominates in determining its result. As a result, Indian courts also have held that betting on horse racing and a couple of card games are not gambling. The best to undertake the work of gambling and lotteries is not regarded as a basic right protected by the Constitution of India. It may nevertheless be pointed out that the state government run lotteries create significant donations to the state exchequer of many state governments and the Union authorities, and consequently there’s a resistance to finish prohibition.

The next legislation is pertinent to gambling:

The Public Gaming Act, 1867

This Act provides punishment for public gambling and for maintaining of a’common gaming house’. This Act also authorises the nation authorities to enact legislation to regulate public gambling in their respective jurisdictions. The penal legislations in various states are amended in accordance with their policy on gaming. However, this legislation does not have any direct effect on online gaming unless a wide interpretation is provided to the definition of common gaming house in order to include virtual forums also.

The Indian Contract Act, 1872 (ICA)

The ICA is a codified umbrella legislation that governs all industrial contracts in India. Under the ICA, a wagering contract would be the one which can’t be enforced. The Act lays ;’Agreements by way of wager are void, and no suit shall be brought for recovering anything alleged to be won on any wager or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made’. Gambling, prize and lottery games have maintained to be wagering contracts and so void and unenforceable. While a wagering contract isn’t prohibited, it cannot be enforced in a court of law. Therefore, the courts won’t entertain any kind of action that arises from a wagering contract.

Lotteries (Regulation) Act, 1998

This Act provides a framework for organizing lotteries in the country. Under this Act, the state governments are authorized to promote as well as prohibit lotteries within their territorial authority. This Act also provides for the manner in which the lotteries should be ran and prescribes punishment in case of breach of its supply. Lotteries not approved by the country have been left an offence under the Indian Penal Code. Many non-lottery playing countries, like Gujarat and Uttar Pradesh, have banned the sale of other state-government lotteries under this Act.

Indian Penal Code, 1860

Department 294A deals with maintaining lottery workplace. It states that anyone keeps any office or place for the role of drawing any lottery maybe not being a State lottery or a lottery authorised by the State Government, will be punished with imprisonment of either description for a term which may extend to six months, or with fine, or with both.

And whoever publishes any proposal to pay any amount, or to provide any goods, or to do or forbear doing something for the benefit of any person, on any event or contingency relative or applicable to this drawing of any ticket, bunch, number or figure in any such lottery, will be punished with fine that might extend to one thousand rupees.

Internet gambling

The legislation related to betting can also be applicable to online gambling. All gambling contracts are considered to be wagering contracts and it is not feasible to enforce such contracts below the ICA, detailed above.

As pointed out earlier, the online lottery has become the most popular type of online gaming in India. Most firms distributing and marketing or running nation government-sponsored lotteries throughout the internet are not allowed to sell their services in the states that banned lotteries. Typically, these marketers and vendors limit their services to customers that are residents of the countries by which a lottery is permissible. Notwithstanding the fact there has been no reported case of breach by any company promoting online lotteries, most of these companies (as a shield ) seek a job from their consumers regarding their residence.

There have been instances where one state has prohibited the lottery of different states, such as online lotteries. In a current case, the Karnatka High Court declared the decision of the Karnataka government to create this a’lottery free zone’ by means of a ban on lotteries of the rest of the states, including online lotteries under the Lotteries (Regulation) Act 1998. The state authorities, in this instance, directed the closing of their terminals and kiosks selling the internet lotteries.

Enforcement over foreign authorities

When the websites are hosted and operated from outside India, it could be hard for the Indian authorities to issue any directive to shut them down or prohibit their accessibility with its blocking powers under the ITA. The authorities have little to worry about, as Indian foreign exchange laws don’t allow remittances outside India for gaming related action, such as the purchase of lottery tickets, soccer pools and sweepstakes. Because of this, a gaming website hosted out India aiming at receiving money from within India cannot do so through legal channels.


Online gambling remains a highly regulated industry with apparently limited horizons to develop. While the current regulatory framework makes it hard for offshore gambling websites to target customers from India, the India-based companies can simply distribute and promote state-government lotteries online in allowed territories. The irresponsible authority together with the government to block gambling related websites and the impossibility of enforcing gambling-related contracts further dissuade the prospects for your industry.