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Online Gambling and Gaming A Social, Technological and Regulatory Challenge

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Online gaming rules a ‘watershed’ moment, say Indian startup founders

  • While most Indian states have enacted laws prohibiting gambling and betting—except for certain exceptions like horse racing and specific card games—states like Goa and Sikkim have legalized and regulate several forms of gambling and betting.
  • It should not come as a surprise, as the country is home to roughly 1.4 billion people, with plenty of them seeing online gambling as a good pastime activity.
  • Unfortunately, what began as a platform for sportsmanship and entertainment is now being misused by illegal betting platforms operating under the garb of online gaming, to entrap unsuspecting cricket fans.

EGF does not accept casinos, betting, gambling, and lottery operators as members. Batery Casino offers Indian players an expansive selection of over 12,900 games, including 9,000+ slots, 500+ table games, and 478 live dealer options, surpassing the national average of lobebet casino 3,000–5,000 games. The advisory underscores the Ministry of Information and Broadcasting’s efforts in issuing various advisories to media platforms, cautioning them against publicizing betting and gambling platforms.

Licenses related to Online Gaming in India

Online gambling India

To put an end to his confusion, the online rummy websites had approached the Supreme Court6(details of the case have been discussed below) to clarify whether the Gambling Legislations cover online gambling portals. Telangana’s Gaming (Amendment) Act, 2017 has expanded the meaning of wagering and betting to include acts that risk money on uncertain events, even if such game is one of skill. This amendment has been challenged in the High Court of Telangana and the Court is yet to decide the matter. Tamil Nadu passed an ordinance that bans betting or wagering of any kind in cyberspace using any communication devices or computers, through common gaming houses, and electronic transfer of funds to deliver prize money. Punishment for violation of this law includes a two-year term of imprisonment and a fine of up to Rs. 10,000 or both.

According to some press reports, if the GoM’s new rate of 28% tax goes into action, then the online skill gaming industry is likely to experience a 50-53% rise in taxation. Globally, the gaming industry pays approximately 10-20% of its earnings as taxes. Similar to games of chance, a GST rate of 28% is applicable to online lottery.

Online gambling India

These platforms allow sports fans to build virtual teams containing counterparts of real players from upcoming matches and score points based on their on-field performance. The legality of fantasy sports has been discussed by courts in India, with most concluding that fantasy sport is a game of skill and not a game of chance. In August 2021, the Supreme Court upheld the Rajasthan High Court’s finding that Dream 11 is a platform that involves skill and does not amount to gambling. Betting is another form of gambling that is subject to various laws in India. Sports betting, in particular, has gained significant attention in recent years. In general, betting on horse racing is considered legal, as it is deemed a game of skill under the Horse Racing Exemption of the Public Gambling Act.

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