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Gambling and online casinos in India
India is the world's second most populous country and one of the largest potential online gambling markets.
Here, gambling is in a complex legal system where regulation occurs at the individual state level rather than the federal government.
This creates a mosaic structure of the market, where casinos in some regions are completely legal, and in others they are punishable by law.
Legislative framework
The main federal law governing gambling is the Public Gambling Act 1867, inherited from the British era.
It prohibits organizing and participating in gambling, but does not apply to:- lotteries allowed by the states;
- games based on skill (game of skill), not luck.
- Goa, Sikkim and Daman legalized casinos;
- Telangana, Andhra Pradesh and Tamil Nadu have banned even online gaming altogether;
- Maharashtra, Delhi and Punjab allow offline betting on horse racing.
Thus, gambling in India is legal only where it is expressly permitted.
Separation: "luck games" and "skill games"
This is a key legal distinction that determines the fate of online gambling.
Games of Chance - roulette, slots, poker, casino, bingo, dice.
️ Prohibited in most states.
Games of Skill (skill games) - fantasy sports, chess, poker in some states, rams.
Allowed by decision of the Supreme Court of India (State of Andhra Pradesh v. K. Satyanarayana, 1968).
This boundary allowed the emergence of a multibillion-dollar online gaming industry operating under the guise of "skill games."
Casinos in India
1. Goa is a major casino hub
Goa is the only state that allows land and floating casinos (on ships in the Mandovi River).
Licensed operators work:- Deltin Royale,
- Big Daddy,
- Majestic Pride,
- Casino Pride.
Casinos are available to both tourists and citizens of India, but with an entrance fee (₹1 500- ₹3 000).
Games include roulette, blackjack, baccarat, and slots.
The annual turnover of the Goa industry exceeds ₹4 000 crores ($480 million).
2. Sikkim - online casinos and betting licenses
Sikkim was the first state to legalize online gambling under the Sikkim Online Gaming (Regulation) Act 2008 license.
Licenses are issued for:- roulettes, baccarat, blackjack;
- sports betting and poker.
However, access is restricted to in-state users only (IP geo-blocking).
3. Daman and Diyu
The Daman region is actively developing gambling resorts for foreign tourists, including The Deltin Daman Resort, but activities are limited to temporary permits.
Online gambling in India
️ Legal status
There is no federal law governing online gambling.
Since the Public Gambling Act was adopted in the 19th century, it does not take into account Internet activities.
As a result:- online casinos and poker platforms operate in a gray area;
- operators host servers abroad - in Curaçao, Malta or the Isle of Man;
- advertising is regulated gently, but since 2023 under the control of the Ministry of Electronics & IT (MeitY).
Popular platforms
Parimatch, 1xBet, PureWin, 10Cric, Betway, JeetWin (partly Indian brands);
Dream11, MPL, My11Circle - fantasy platforms recognized as legal.
Players actively use UPI, PayTM, Skrill, cryptocurrency to replenish accounts.
State lotteries and betting
Many states have legalized state lotteries (especially Kerala, Sikkim, Maharashtra).
The turnover of the lottery sector is more than ₹50 000 crore ($6 billion) per year.
Horse racing betting, recognised as a "skill game" by the Supreme Court, is also allowed.
Online regulation and the fight against illegal sites
In 2023, the Indian government adopted new rules for online gaming (Online Gaming Rules under IT Act 2000):- Self-Regulatory Bodies (SRBs) are created - independent organizations for certification of online games;
- money betting games should be transparent and safe;
- online casinos remain outside the legal field, but media and bloggers can be fined for their advertising.
MeitY and TRAI also block domains that violate the law, but VPNs and crypto payments continue to bypass restrictions.
Taxation
Since 2023, a single GST (Goods and Services Tax) has been introduced for online gambling:The decision sparked an outcry from operators but secured billions of rupees for the budget.
Problems and risks
1. Legal uncertainty - the absence of federal law makes business risky.
2. Youth addiction - online gambling is growing rapidly, especially among users 18-25 years old.
3. Money laundering and cryptocurrency - part of the operations goes through offshore.
4. Advertising and fake platforms - the growth of fraud and pyramids under the guise of "gaming."
Economic importance
Despite the restrictions, the online gambling market in India is growing rapidly:- estimate for 2024 - $3.5 billion,
- forecast for 2030 - $10-12 billion.
- More than 400 startups work in iGaming, Fantasy Sports and Rummy.
- The industry provided more than 80,000 jobs in 2024.
Development prospects
India is moving towards the gradual legalisation of online gambling, especially in economically liberal states.
Expected changes:1. Passing a single federal digital gambling law.
2. Introduction of a national license for operators.
3. Regulation of crypto payments and AML checks.
4. Support for "skill games" as a national industry.
Gambling in India is a balance between tradition, law and modernity.
Although casinos and online gambling are officially limited, the market is growing faster than any other in Asia.
Goa casinos and digital platforms are creating a powerful influx of taxes, and the younger generation's interest in fantasy sports and poker is shaping a new "smart excitement" industry.
India is on the verge of an important choice:
