There are different kinds of gambling in India that are prevalent and had been practiced in India in past many years i.e. Horse Racing, Lottery, Skill Games, Casino Gambling, Online Gambling and Sports betting. The legal position on gambling in India is divided into two broad categories i.e. games involving skill and games of chance.
The fact that interests the most would be definition of ‘Skill games’. The Apex Court in India has defined Skill Games as, “The competitions where success depends on substantial degree of skill are not ‘gambling’ and despite there being an element of chance if a game is preponderantly a game of skill it would nevertheless be a game of mere skill.”
As per the given definition, it has been declared that Horse racing or Dog Racing includes substantial amount of skill and does not fall under the definition of gambling except under certain conditions.
Grey Legality: Most of our Indian States have given permission to open lottery terminals in abundance where draws take place every 15 minutes. Surprising isn’t it? Sikkim is one State which is popular for its gambling terminals and its own regulatory framework. The reason for not following the Central Lotteries Act is their constitutional right under Seventh Schedule, which allows them to create their own laws for all kinds of Gambling.
Public Gambling Act, 1867 is an old Act and do not contain any regulations with regard to online/internet gambling. There are online betting agencies including bet365, Ladbrokes, Bet fair or William Hill that entice gamblers to place bets. Today, internet gambling is making wealth out of Internet Gambling. Due to lack of any servers, advertising or any concrete law in India, it is giving Indians an easy way to gamble on sports by use of e-wallet etc. It also includes IPL matches.
In order to regulate and restrict online gambling in India, the Payment & Settlement Act, 2008 authorizes the Reserve Bank of India, to start or operate a payment system for regulation of all kinds of electronic payment mechanisms. FDI Policy has also restricted enterprises to involve in Lotteries, Gambling and Betting Activities. Also, we have IT (intermediary guidelines) Rules, 2011 to block access to prescribed types of websites and content.