Are Betting Apps Legal in India? (April 2024)

The Online Gambling Laws in India

Central Government Laws

In India, the Public Gambling Act of 1867 is the sole piece of central legislation about gambling. It does not, however, explicitly proclaim online betting legal in India because it was created long before online casinos and fantasy sports betting apps were even a thing. Nor does it consider it unlawful.

State Government Laws

The Constitution's 7th Schedule declares gambling and betting to be state subjects, giving states the authority to create their laws to control gaming inside their borders. As a result, several governments have created legislation governing online betting in recent years. 

These are some important findings:

• In Goa, Daman, and Sikkim, offline casinos are permissible. In all other places, it is prohibited. 
• Sikkim and Meghalaya allow online domestic casinos as long as they are licensed. 
• In all other regions of the nation, online-based domestic casinos are prohibited. 
• Except for Tamil Nadu and Telangana, offshore casinos and online betting sites are legal everywhere. 

Guidelines From The Reserve Bank of India

The Reserve Bank of India created FDI laws to control the flow of funds from Indian businesses involved in betting, lotteries, and gambling to handle internet betting within the country. However, offshore betting websites are typically exempt from these laws.

As a result, there should be no legal repercussions for playing games of chance on reputable online betting applications and websites, which implies that well-known online gambling sites like Parimatch, Bettlit, and 10CRIC are acceptable in India. 

In summary, similar to central regulations, there isn't a specific RBI policy declaring that internet betting isn't permitted in India.

Game of Skill is Legal In India & Game of Chance Is Not: Learn Why!

Games of skill and games of chance are the two main factors taken into account for legal considerations in the online betting markets. Let's examine them in more detail. 

Games of Skill In India

India is gradually accepting and moving toward legalizing games of skill betting. But what exactly are games of skills? These are games where prior knowledge or skill in the game is necessary to improve your chances of winning.

One of the best examples of games of skill that India is considering is horse racing betting. In horse race betting, your chances of winning decrease if you are an amateur with very little experience, while an experienced player can patiently and strategically analyze the game conditions and plan his wager to win.

Interestingly, the well-known Indian game "Andar Bahar" is a game of skill rather than chance because you have a 50/50 winning probability. 

Games of Chance In India

Except for a few states like Sikkim, Goa, and Daman, games of chance are illegal throughout India. A decent way to comprehend the game of chance is to believe in your luck. To play a game of chance is simply placing a wager over which you have no control.

The best illustrations of games of chance are seen in casino slots with real money. Players of games like roulette or slot machines must be skilful and only be able to make bets. The player's luck is the only factor that determines whether they win the wager. The majority of Indian governments forbid physical gambling establishments of this type because they view games of chance as unlawful.

However, Indian gamblers have a legal alternative in online casinos. Games of chance include the lottery, roulette, and dice games. Although there’s no offline or physical location to enjoy these games of chance, online betting apps run by offshore operators do have these games available for Indian casino enthusiasts!

Indian States Where Gambling Is Legal And Illegal

Indian courts have not yet determined whether a foreign betting website qualifies as a "common gaming house," even though gambling and betting are facilitated in numerous states by licensed businesses known as common gaming houses.

A handful of states have updated their real money gaming and gambling legislation to specifically cover websites and apps.

• On December 2, 2017, Telangana published a notice in the Telangana Gazette amending the Gaming Act to include Internet in the definition of gaming establishments;
• The 1974 statute was revised by Andhra Pradesh last year, subjecting gamblers to criminal prosecution; both states inherited it;
• A law prohibiting online gambling, rummy, and poker was passed by Tamil Nadu in 2020, with few exceptions for skill-based games;
• While amending its laws to handle online real money gambling venues, Nagaland launched a licensing system for online skill games; 
• The State supports real-money gaming. Similar to Nagaland, Sikkim has been updating its gaming laws since 2008 to control stakes-based gaming and to allow real-money gaming; 
• Meghalaya enacted an ordinance in March 2021 to control and generate income from real money gambling.

The issue with regulating foreign betting sites is that state governments oversee gambling, while the federal government regulates the Internet as a whole. So, a single State can't restrict a problematic website or app inside its boundaries. 

For instance, Andhra Pradesh attempted to request aid in preventing access to real money gaming websites that the State had just outlawed through the Hon. Chief Minister, YS Jagan Mohan Reddy. Though it has since been emphasized that the Center lacks the statutory authority to take action against what is effectively a State concern, these websites have remained accessible.

Future of Online Betting Apps In India

Given the heightened regulatory scrutiny, online betting apps in India are bound to revolutionize and change in the future.

Despite the industry's growth, the Indian government has taken steps to outlaw deceptive advertising tactics because it is worried about certain betting sites. The necessity of a self-regulatory body (SRB) certification in India's online gambling business is highlighted by recent revisions made in April 2023.

Some states, including Telangana and Tamil Nadu, have already decided to join the minority of governments in India that view online betting as lawful. We think that these two states are the exceptions, and it's unlikely that India will see a national online gambling ban very soon.

What is apparent, though, is that the Indian online betting market, which has, up until now, operated mostly autonomously, is placing a greater emphasis on establishing more structure and responsible betting procedures. More protection and safety overall for gamblers.

In a nutshell, there are differences in state laws regarding the legality of online betting apps in India, making it a complicated matter. While some states have welcomed online gambling, others have more stringent laws. Given this, it's essential to comprehend the legal system and select a platform that complies with the legislation.

The following factors should be prioritized when choosing a legal betting app: security, user-friendliness, licensing, and payment methods. These elements can support you in ensuring a fun and safe betting experience. Remember to set limits and gamble sensibly. Have fun, and good luck as you play!