12 Most Common Online Gaming Legal Issues in India
The number of Indians getting connected to the Internet and gaining access to online casino games like poker and rummy is growing with each passing month. Offshore gaming operators are cashing in on India’s love for online gambling and its lack of online gambling regulation.
Guest author Monin Manne takes a look at the problems and legal issues that India is facing with regard to its online gambling industry. We put together a list of the 12 most common online gaming legal issues in India.
Games of Skill vs. Games of Chance
Indian laws prohibit playing games of chance as these games are considered gambling and the majority of Indian states do not allow gambling. However, you can play skill-based games which are legal in India. iGaming operators are trying to get state legislators to recognize that many of their games that have been labeled as gambling are games of skill. You can find the best online casino in India and play skill-based games like poker and blackjack.
Gambling Apps Blocked in Several States
Many state governments have banned online gambling apps. For example, the Government of Andhra Pradesh has banned online gambling apps because many young players have committed suicide after building up mountainous gambling debts. M. Sucharita, the home minister of Andhra Pradesh, says that online gambling increases organized crime like fraud and money laundering.
Legal Online Gambling in India
Goa, Daman, and Diu and, Sikkim have legalized gambling within their territories. Sikkim has legalized online casino games. The state licenses operators to offer online casino games like Casino Brag, Blackjack, and Roulette. A great way to find the top online casinos in India is to spend a few minutes checking out different Indian online casino reviews.
Gambling, both land-based and online is illegal in all other Indian states.
States Make the Laws
The Indian Constitution gives individual states the power to frame gambling and betting laws. Some Indian states have adopted the Public Gambling Act of 1867, and many have created laws of their own to prohibit or regulate gambling activities within their territories.
Although most of these laws were enacted before the advent of the Internet, one can argue that they apply to online gambling too.
Indian Government Doesn’t Receive Gambling Taxes
When millions of Indians place bets on offshore online casinos that do not pay taxes to the Indian government, the country loses a lot of money in terms of tax revenue. This is another valid reason to avoid signing up at offshore online casinos.
Unlicensed Offshore Casinos
Singing up at offshore online casinos that haven’t received a license from the Indian government is dangerous. The Indian government has no power over these casinos as they are based in foreign countries and cannot help you if you become a victim of fraud.
No Gambling Regulator in India
India has no gambling regulatory body to oversee gambling activities, review applications for licenses, grant licenses to operators, and penalize operators who violate gambling laws. This is because India lacks the regulatory framework required to create an online gambling regulator.
Problem Gambling in India
Offshore online casinos are taking advantage of the lack of gambling laws in India and offering their services to Indian residents. These casinos are interested only in profits and don’t care about their players. As a result, the number of problem gamblers is fast increasing in India.
Money Laundering
Several players use online casinos for money laundering, and in the absence of laws, the Government of India cannot take any steps against it.
Indian Government Cannot License Online Casinos
The Government of India cannot license online casinos. Hence, all of the casinos that are catering to Indian players are licensed in foreign countries or not licensed at all. Casinos that are licensed by reputed gaming regulators like the UK Gambling Commission or the Malta Gambling Authority are safe to play at. However, playing at unlicensed casinos is a big risk as there is no recourse if something does go wrong.
Gambling Related Suicides
As India has not licensed and regulated online gambling and implemented measures to protect those vulnerable to gambling harm, gambling-related suicides among Indians are fast rising. Recently, a 29-year-old contract laborer in Kerala committed suicide because of gambling addiction. He had gotten into an unmanageable debt of INR14 lakh.
Urgent Need for Online Gambling Legalization in India
India is urgently in need of online gambling laws. Indian players love playing poker and rummy online, and law-enforcement agencies cannot take any action against illegal gambling apps in the absence of laws. A study conducted in 2017 at Lisie Hospital in Kochi indicates that close to 1% of the Indian population has experienced gambling harm.
Conclusion
There is a push in multiple states to legalize online gambling but the opposition to legalized gambling in India continues to be strong.