Gambling in India occupies a peculiar and often contradictory position within the legal landscape, governed by a combination of archaic colonial statutes and fragmented state-level laws, struggling to stay relevant in the face of the modern digital revolution. Rooted historically in Indian society and culture, gambling has evolved from dice games depicted in ancient epics like the Mahabharata to complex online platforms offering real-money poker, fantasy sports, and betting apps, all of which function in a regulatory grey zone. The principal legislation at the national level, the Public Gambling Act of 1867, was enacted during British rule and criminalizes the operation of public gambling houses while explicitly excluding games of skill from its scope. However, it neither defines gambling adequately nor envisages online or digital formats, making it grossly outdated in a rapidly changing technological context. As per the Indian Constitution, gambling is a state subject under Entry 34 of the State List, empowering individual states to formulate their own laws, which has led to a patchwork of inconsistent regulations across the country. Some states like Goa and Sikkim have legalized and regulated certain forms of gambling, including casinos and online gaming under license, while others such as Telangana, Gujarat, and Tamil Nadu have imposed complete bans, including on skill-based digital games, sparking legal challenges and public debate. Central to the gambling law framework is the distinction between games of chance, which are generally prohibited, and games of skill, which enjoy protection under Article 19(1)(g) of the Constitution, guaranteeing the right to practice any profession or trade. Indian courts have played a pivotal role in interpreting this distinction, declaring in various judgments that games like rummy and horse racing require substantial skill and are therefore legal, while games predominantly based on chance can be banned. However, the so-called “preponderance of skill” test applied by courts remains subjective and varies across jurisdictions, leading to confusion, especially in the context of hybrid games that involve both skill and chance. The emergence of online gambling platforms has further complicated matters, as many operators argue that their offerings are skill-based and thus legal, even as they promote real-money games to a vast and often young user base without adequate safeguards. The regulatory vacuum at the central level has enabled these platforms to function across state borders, often exploiting loopholes in local laws, while concerns around gambling addiction, financial loss, and data privacy remain largely unaddressed. Several attempts by states to ban online games like rummy and poker have been struck down by High Courts for being arbitrary or violating constitutional rights, further demonstrating the inconsistency and inadequacy of current laws. Recognizing the growing challenges posed by online gambling, the central government in 2023 amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules to bring online gaming intermediaries under a regulatory regime, mandating registration with self-regulatory bodies, age verification, and grievance redressal mechanisms, although the enforcement and clarity of these rules are still developing. Meanwhile, the Goods and Services Tax (GST) Council’s decision to impose a flat 28% tax on the full face value of online gaming transactions, including on so-called skill-based games, has drawn criticism from the industry for being regressive and possibly stifling innovation, yet reflects the government’s attempt to assert fiscal control over the sector. Comparatively, countries like the United Kingdom and Singapore have adopted more structured approaches, offering central regulation, licensing, and consumer protection norms that India could study and emulate. The United Kingdom’s Gambling Act, 2005, for instance, ensures a balance between economic benefit and user safety, while Singapore’s Gambling Control Act, 2022, provides a modern framework to regulate both physical and online gambling comprehensively. India stands at a similar juncture where the absence of a uniform national gambling law is proving increasingly unsustainable in light of digital proliferation and cross-border online access. A modern, unified legal framework is urgently needed—one that clearly defines gambling and distinguishes it from legitimate gaming, regulates platforms with transparent licensing norms, imposes strong consumer protection obligations such as deposit limits and self-exclusion options, and ensures robust oversight to prevent money laundering and financial fraud. Such a framework must also include public awareness initiatives to combat gambling addiction and misuse, especially among minors and vulnerable sections of society. The current ambiguity in the law not only puts consumers at risk but also exposes gaming companies to arbitrary legal action, creating uncertainty for investors and operators alike. With online gambling rapidly evolving into a multi-billion-dollar industry in India, the legal system can no longer afford to remain vague or reactive. Legislative reform must be proactive, adaptive, and inclusive of all stakeholders—from gamers and legal experts to mental health professionals and technologists—to ensure that the law keeps pace with changing realities. In conclusion, gambling law in India today is a reflection of the tension between tradition and modernity, between state autonomy and the need for central regulation, and between liberty and protection. To resolve these contradictions, India must move decisively towards legal clarity, regulatory cohesion, and a balanced approach that recognizes both the risks and the opportunities of a well-governed gambling ecosystem in the digital age.
Contributed by Vaibhav Goyal (Intern)